O2 is to jump on the IPTV bandwagon and trial an internet-based TV service next year after having success with a similar product in the Czech market.

Since it's launch in September 2006 the test bed has signed up 70,000 customers, which gives O2 and its owner, Telefonica, confidence to move into the UK market, even though UK IPTV providers are fining it tough going.
Virgin Media's quad-play offering has proved disappointing, while take-up of rival BT Vision, even with substantial TV advertising has been slow over the past year. Even established providers such as Homechoice, which Tiscali acquired last year, has seen customers drop to 36,000 from 45,000,  boss Mary Turner has still pledged it would have 200,000 customers by the end of 2008.