BT has signed a deal with Philips to supply a set-top-box that combines a personal video recorder (PVR, also known as a digital video recorder or DVR) with a digital terrestrial tuner and the ability to receive programmes transmitted over a broadband Internet connection.

The BT service effectively adds a selection of on-demand "catch up TV" programmes, delivered over a broadband connection, to the functionality of a standard DTT and PVR box. As DS reported in September, the box will use Microsoft's IPTV Edition middleware.

The service will launch in the second half of 2006, and will be "available to BT customers without the need for a subscription fee," the company revealed today. In addition to the catch-up TV functionality, the telco plans to offer on-demand movies, instant messaging and interactive services on the platform in a move clearly designed to rival services available through existing cable operators.

"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," said BT Retail CEO Ian Livingston. "We see next generation TV as a vital element of our vision for home entertainment. In an increasingly converged world, BT customers will be able to benefit from the combination of television, communications and the internet. For example, football fans across the country will be able to chat using video telephony while watching a match. Our catch-up TV offering will also allow people to watch programmes they may have missed but wanted to see."