Fresh TV has an agreement with Government to provide programming through Government's cable channel three, but not a licence, Government clarified yesterday.

Director of Telecommunications and e-Commerce Bill Francis said that, as Fresh TV was not a telecommunications service, Government and Fresh had entered into a commercial agreement.

"The telecommunications service is being provided by Cablevision and World on Wireless," Mr. Francis said."Because they are not providing a telecommunications service, in essence they do not need a licence."

Asked about the terms of the contract, Mr. Francis said: "I won't say anything about the conditions because it's an agreement rather than a licence ? the terms are confidential."

But he did reveal that the fee to be paid will be according to what a Class One Broadcasting licensee would pay.

Bermuda's traditional broadcasters were not canvassed,he said, because the deal was not subject to the process needed to get a license, such as a formal application and a public hearing.Fresh TV announced this week that it had entered into a five-year agreement to continue operations on Government's channel three.

It said it also had permission to operate through World on Wireless a digital cable company.

Yesterday, Kenneth DeFontes, head of DeFontes Broadcasting said that he had not reaction to the news but wondered whether Fresh TV was being required to pay its five year fees in advance as do other broadcasters.

"We just continue doing what we are doing and we are very happy doing what we do," Mr. DeFontes said.

"It's competition like any other station and we just have to be competitive."

He said his station's picture quality was "probably the best in the business" after recent equipment upgrades.

Bermuda Broadcasting Company CEO Rick Richardson could not be contacted for comment.