BT will launch its first digital terrestrial TV service in the Autumn, offering on-demand films, TV and music programmes.

Called BT Vision, the service will combine digital-terrestrial channels received via an aerial with broadband video-on-demand over the phone operator's network. BT is working with Microsoft to provide the software and Philips for the combined set-top box receiver.

“BT Vision will be offered nationwide and will be not restricted to metropolitan areas and as with Freeview there will be no mandatory subscription,” said Dan Marks, chief executive of TV Services for BT.

The hardware platform,said BT, will also act as a wireless networking hub connecting phones and PCs as well.