BT has outlined its plans for delivering internet television services by next year.

The telecoms giant has joined forces with electronics giant Philips and Microsoft so it can offer combined access to 30 digital terrestrial channels, video on demand and a range of other interactive services using broadband.

The move puts BT in direct competition with satellite broadcasters such as BSkyB, which recently bought internet service provider (ISP) Easynet, as well as other ISPs and cable and television companies.

Philips has been selected to supply the set top box which will include a personal video recorder (PVR) which can store up to 80 hours of programming and is capable of delivering High Definition content. BT will use Microsoft's TV IPTV Edition as the software platform for the service.

The services BT said it plans to offer will be extensive. These include a large library of movies, TV and music. People will also be able to catch-up on TV programmes from the previous seven days broadcast schedule without the need to record. There will be also pay per view options as well as instant messaging, chat and video telephony on TV and community services.

Trials of the new service will begin next spring and BT said it plans to offer these services across the UK from late summer / autumn 2006.The service will be free to BT broadband customers but it is not known if if BT will offer the service to customers of other broadband service providers for a subscription fee. There are also no details on pricing for the set top box as yet or if it will work with other software platforms.

A spokesman admitted that although the final details have still to be thrashed out and the announcement today was prompted by Sky's recent acquisition of Easynet, he said BT had always planned to offer internet TV services

In Livingston, chief executive BT Retail said: "Our services will be a world first and will place power in the hands of the viewer. No longer will BT customers be reliant on TV schedules. From next year, they will be able to watch what they like when they like. This is all about giving our customers choice, convenience and control".