The telco has sealed an agreement with production company Endemol to license programming and develop interactive content.
The service will combine access to digital terrestrial channels through the aerial with broadband-powered video on demand delivered on a software platform powered by Microsoft through a set-top box made by Philips.
BT confirmed that there will be no mandatory monthly subscription.
BT Vision will be powered by the BT Hub, which will also allow wireless networking for PCs and laptops and up to five different calls to be made at the same time using VoIP technology.
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