Eircom has announced it will cut its monthly rental fee for high speed broadband services from the beginning of March.
The decision is subject to regulatory approval, and if approved, the company's broadband customers will pay €40 per month including VAT, a drop of €14.
This news comes on the heels of rival Esat BT's announcement last week that its new 'mix and match' phone and internet service, was 37.5% lower than that of eircom's.
The wholesale rate to be charged to other operators who sell on services under their own brand will fall from €27 to €23 per month.
Eircom hopes to sign up 100,000 broadband customers by the end of the year.
The company's commercial director David McRedmond, said that Ireland is set to reach the average EU broadband penetration rate of 6-7% by the end of this year.
Eircom also said it would soon announce plans for a new range of broadband retail products.