It appears as if BT has finally decided upon the design for its broadcasting ambitions. The operator is expected to announce plans to enter the pay-per-view TV market by launching a BT-branded digital TV and Internet (xDSL) service.

BT is in talks with Netgem and SetPal, which make devices enabling viewers to receive the free-to-air Freeview service, over developing set-top boxes.

These boxes will allow subscribers to watch films and other video content downloaded via the Internet.

Pricing has not been finalised yet, but the set-top boxes are expected to cost around £129 each, the FT newspaper said. A BT spokesman could not be reached for comment.