investment from an overseas investor.

The end is near for the Bermuda Telephone Company's monopoly on providing cellular telephone services.

On Friday Bermuda Digital Communications Ltd. received its telecommunications licence, giving it the go-ahead to compete in the local cellular telephone market.

The licence was granted as the company received $4 million in equity and debt financing from Atlantic Tele-Network, Inc. a telecommunications company with headquarters in the US Virgin Islands and operations in Guyana.

The combination of debt and equity financing was necessary to keep the company within Bermuda's rules limiting foreign ownership to 40 percent.

On hand to sign the deal Friday was Atlantic Tele-Network vice president Steve Rohrlick and company lawyer Lewis Stern. The deal gives Atlantic a stake of about 30 percent in Bermuda Digital.

The original owners of Bermuda Digital are chairman and chief executive officer Kurt Eve, members of his family, Cyril Rance, Kevin Stevenson, chief operating officer Michael Leverock, and the Fairmount Trust.

Mr. Eve said the funds will be used to buy network equipment and provide working capital. BDC has already secured planning permission for its transmission sites and will start building the network within two months.

Once the communication towers are set up, the company plans on offering Island-wide service this fall. Digital service will be offered next year. The company, which currently has four employees, will hire another eight to 11 employees when operational.

BTC had about 10,000 cellular customers in January this year, according to the company's annual report.

Mr. Eve said Bermuda Digital projects it will break even within five years when it has between five to seven thousand customers. Bermuda residents should not however expect lower cellular telephone rates due to competition, Mr. Eve said.

"We will offer price reductions for large customers,'' he said. "Cellular rates are quite reasonable in Bermuda at about 30 cents a minute. It's usually between 40 to 50 cents a minute elsewhere. We will compete by providing better customer service and technology. That's how we will differentiate ourselves from BTC.'' The next step for the company is to negotiate interconnection agreements with BTC, Quantum Communications Ltd., Cable & Wireless Plc, and TeleBermuda International Ltd. so the company's customers can have access to other telephone users locally and worldwide.

Interconnection agreements have been a source of dispute since competition entered the local market last year. Quantum currently does not have an interconnection agreement with BTC because of a legal dispute.

Mr. Eve said he expects BTC to be a tough negotiator because it is the only company in direct competition with Bermuda Digital.

Atlantic Tele-Network, which trades on the American Stock Exchange, has 800 employees and owns 80 percent of Guyana Telephone and Telegraph Co., Ltd. The Guyanese government owns the other 20 percent. Guyana Telephone provides local, long-distance, cellular and international service.

Atlantic was formed in 1987 to buy the Virgin Islands Telephone Corp. and went public in 1991 with the acquisition of the Guyana subsidiary. In December last year Atlantic split into two companies, hiving off the Virgin Islands operation due to a dispute between the company's two co-chairmen.

Atlantic chairman Cornelius Prior, Jr. and Mr. Rohrlick have been named board members of Bermuda Digital. The company had net income of $7.9 million, or $1.69 a share in 1997.

Mr. Rohrlick said Atlantic will provide expertise to Bermuda Digital and any other services it needs to compete in the market.

Mr. Eve said Bermuda Digital was also considering whether or not to make a public offering of shares on the Bermuda Stock Exchange.