An internet price war is heating up in Bermuda as TBi last night announced it’s lowering its residential internet rates.The company said the lower rates will still be no contract required and noted its customers have been pleased to “actually get the speeds they sign up for”. The reduced rates include the 4MB and 25MB plans dropping by $10 each.Effective July 1, TBi said it has made a rate adjustment to its new residential internet packages and, as promised, all existing customers will be billed at the new rate.“TBi’s service launch established a new benchmark for all carriers with its no contract offering,” said Gregory Swan, President and COO. “With the launch of our Residential Internet offerings, one of the distinct benefits is that no contract is required for the service. Additionally, if there is a price adjustment, the new rates will apply to all of our existing Residential Internet customers automatically.”The company is lowering their rates effective July 1 with the 4MB offering dropping from $49.95 to $39.95, with additional reductions on all packages through to 25MB which was previously $159.95 and now $149.95.The new rates will apply to everyone.“Thus far, we are really pleased with the response to our plans,” Mr Swan said. “Customers love the idea of no contracts and automatic rate adjustments.“They also like having a 24/7 Help Desk that is right here in Bermuda. Furthermore, they have been pleasantly surprised to actually get the speeds they sign up for.”Mr Swan added: “Our position is very clear; the consumer deserves the right of choice. This places the responsibility of customer retention on TBi as a company, rather that on a contractual obligation. This forces us to stay customer focused; ensuring that our network infrastructure, product offering and service levels meet customer expectations.”TBi’s price drop comes after Digicel just over a week ago lowered its rates claiming to have “the lowest internet prices in Bermuda”.Digicel’s lower rates include its 4MB plan currently advertised at $40 a month, 6MB at $50 and its 15MB plan at $90 and 25 MB plan is $150.Logic’s currently advertised 4 MBps rate is $69.95 a month, down from $99.95 while 25 MBps is $179.95, down from $199.95.