BT's new television service will be called BT Vision.
The service combines access to digital-terrestrial channels through the aerial with broadband-powered video on demand. It launches in Autumn.
BT Broadband customers who want to be first in line for the service can register for it now.
BT has arranged a string of content deals for the service, including one deal with Endemol to license programming and develop interactive content for BT Vision.
Other content partners include: Cartoon Network, BBC Worldwide, Paramount and Warner Music Group, factual powerhouse National Geographic Channel and with kids' TV programming leaders HIT Entertainment and Nelvana.
Customers will be able to choose from a wide range of on-demand film, music and television programming as well as a groundbreaking interactive and communications service, all available through their TV sets.
BT Vision will use the BT Hub, which also offers wireless networking for computers and lets customers make up to five different simultaneous calls using voice-over-internet technology.
Dan Marks, chief executive of TV Services, said: "BT Vision will be offered nationwide and will be not restricted to metropolitan areas and as with Freeview there will be no mandatory subscription."