BT are planning to launch a new BT-branded digital TV and internet service, but it will not be available to all internet users.

They are in discussions with Netgem and SetPal, makers of Freeview receivers, to develop set-top boxes similar to Freeview. They would then connect between the broadband internet and TV sets, enabling subscribers to watch films and other video content downloaded via the internet.

The problem, which BT acknowledge, is that their current broadband connections are not fast enough to guarantee high quality streaming video, such as films for its pay-per-view service, so they plan to download the films to be viewed at a later date.

BT also plans to have a whole catalogue of additional content available so that users can download a range of video services, from films to past TV dramas.

The subscription cost of the service as not been announced, but the desktop boxes are expected to be around £130.