Internet charges in the world, one of the Island's leading service providers has dropped its prices by 10 percent.

North Rock Communications yesterday announced that from today they are slashing monthly rates to access the Internet.

And North Rock general manager Tom Coelho said rates could go down even further soon.

The new prices are the result of an agreement between North Rock and long distance phone provider TeleBermuda International to lower Internet costs.

North Rock drops Internet access rates Telecommunications Minister Renee Webb welcomed the cut, saying it was a reflection of the Government's ongoing consultative process with the international licenced carriers to reduce costs.

"I am happy to see TBI lower international access rates to North Rock and for North Rock to pass this saving on to the consumer,'' she said.

The Minister added that the objective of the Government was to work towards bringing down the cost of telecommunications and make business rates competitive in order to encourage international business to invest in Bermuda.

For ten hours use each month customers will now be charged $24, down from $27.

Mr. Coelho said: "We appreciate TeleBermuda's ongoing efforts to provide lower international access rates that facilitated the reduction in North Rock's Internet rates.

"TeleBermuda has continually introduced lower international voice rates and now, we are very pleased to extend this reduction to our Internet rates. Our collaborative relationship with TeleBermuda has provided North Rock with savings and we are immediately providing them to our customers. Existing North Rock customers will see a drop in charges in their next statement.'' The new rates for Internet access vary between $24 for 10 hours in a month under the basic plan to $164 for 100 hours for the family plan.

Costs for excess hours vary between $2.80 an hour for the 10-hour plans to $1.70 an hour for the 100-hour plans.

The announcement follows a report that Bermuda has the third highest Internet charges according to figures released last week.

Only Luxembourg at $88.25 for a 40 hours a week and Germany at $82.92 come in higher, according to a survey by the Organisation for Economic Cooperation and Development.

The Gazette worked out with the new rates North Rock would charge $75 for a 40-hour week -- based on published deals for 37-hours use in a month costing $69.00, plus three hours of excess at $2.00 an hour.

This is $7 less than North Rock charged last week and $6.60 less than rival ISP Logic Communications currently charges.

TBI general manager James Fitzgerald added: "Since first introducing competitive telecommunication services to Bermuda in 1997 international voice rates have been reduced by 58 percent. Savings provided by TBI for international data services over the past few three years have resulted in reductions up to 60 percent.

"We are pleased to be able to continue to provide reduced rates for our corporate clients, such as North Rock and even more pleased to see them pass these savings on to their customers.

"Our plans for the year 2000 will continue this trend with additional reductions in TBI's voice and data access rates.'' Mr. Coelho yesterday rejected claims that Internet costs on the Island are high and said: "Bermuda's rates are not high compared to other small jurisdictions. Competition brings out the best of us in all.''