Residential Internet rates could be forced down by increased competition in the marketplace.

Bermuda company Transact Ltd., a subsidiary of Bermuda Computer Services, is moving in to the dial-up access market from next week, and its cost structure - which appears to undercut the competition's rates - could lead existing providers North Rock and Logic to drop their rates.

And the market could see further competition with two more class C (Internet) licences being issued this week. These went to Bermuda companies iTech and Fort Knox, and allow those ISPs to move in to the residential market.

Logic Communications was contacted by The Royal Gazette but declined to comment on the increasing number of ISPs in the home market.

North Rock's Vicki Coehlo said: "We are pleased that there is another local company in the residential market as it means there is further choice."

On whether or not North Rock would drop its rates, Mrs. Coehlo said the company will "wait and see".

Telecommunications Minister Renee Webb this week said the Internet market now has "enough players" although she did not rule out letting additional Internet Service Providers (ISP) in to the marketplace.

And she added there is still room for the lowering of Internet access rates: "On the Internet side, we still get complaints on it being far too expensive in Bermuda," Ms Webb said.

Transact has held a class C (Internet) licence since 1994 but has limited its services to corporate clients. But as of next week - February 14 - Transact will be offering Internet access to small business and the residential market.

So far Transact appears to be the only new player ready to move right into the home market.

Fort Knox and iTech have said their focus will, at least initially, be the commercial market. But Fort Knox CEO Troy Symonds did not rule out eventually expanding into residential access. And iTech has said their target market could include "high-end" residential.

Transact president Wyatt Sellyeh, who noted that Transact has held a telecommunications licence for almost seven years, said: "To this point the company has focused on leased line Internet access for business. We've offered our large business clients excellent service and superior solutions for many years.

"Now the time has come to extend our services to the small business and home market. It is a natural extension of our business plan and affords the residential and SOHO customer new options," Mr. Sellyeh said.

Transact marketing manager Jane Mullett said the company recognised customers are still looking for alternative solution providers: "Transact's decision to enter the residential Internet market developed over a period of two and half years. During this time the company received numerous inquiries for Dial Internet access."

Transact has said it plans to launch additional technology services, in the coming months, specifically for the small business and the home user market to complement dial-up access.

The company did not state if they will limit their services to dial-up access or if they will offer Digital Subscriber Line (DSL) access.