One of Bermuda's oldest telecommunications companies has been placed on alert as the Government decides whether to take over the island's emergency radio contract.

Telecom Bermuda, a 40-year-old family-run firm, is in danger of losing a core piece of business as its ten-year contract expires in February 2009.

Telecom managing director Brett Marshall explained that despite a lack of experience in running a 911 radio system, the Government is considering bringing the operation in-house.

"You have to look at it as: they've outsourced to us for the past ten years," Mr. Marshall said.

"They have no expertise operating a mission-critical system.

"If they're looking to operate, staff and maintain it in-house, I estimate it would cost them between $750,000 and $1 million per year. They're looking at purchasing it themselves and hiring someone else to do the legwork.

"It's one option: outsourcing the infrastructure like a cell phone deal. They'll look at the economics of it; they have yet to make up their minds."

Mr. Marshall stressed that the role of managing the island's only emergency radio system is literally of life-or-death importance.

"It's a 24/7/365 job; you can't just have one guy who then goes down to Cup Match and has a beer and doesn't come back. People will end up dying."

He added that Telecom is one of many firms, both local and international, in the process of submitting bids to Government Communications Committee.

"Government is running the Request for Proposal (RFP) process, with bids due on 30th September," Mr. Marshall said.

"Interest came from all over the world, with a number of outside vendors in the US and UK, as well as some in Bermuda. There were a handful that passed the pre-qualification, and then proceeded on to the RFP. We're in the process of submitting our proposal."

Mr. Marshall said he expects the contract to be awarded by the end of October. It will be another ten-year contract, from February 2009 through February 2019.

"We've dealt with the obsolescence of technology, and new technology," Mr. Marshall said.

"In our opinion, Government is not best suited. They could hire the expertise, but is it cheaper to outsource? A line must be drawn. We provide good service for a reasonable price and we hope they feel the same way."

Mr. Marshall added that the loss of this lucrative account would be a blow to the family business, which he took over from his father, former UBP Senator Charles Marshall, upon his retirement. The company, in its various guises, has worked on Government, municipal and police communications since the 1950s.

"Telecom will not be Telecom as we know it," he said.

He said he had been impressed by the handling of the RFP process, which is being overseen by the chair of the Government Communications Committee, Major Wayne Smith.

"They've done it by the book," he said. "We've never been in a competitive situation like this before, but that's okay."