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Italy-based Tiscali, which has almost 1.5 million broadband customers in Britain, is targeting viewers who want more than the basic free digital channels but do not want to pay for a full satellite or cable service.

Tiscali said it would offer more than 80 channels including Sky 1 which shows such programmes as Lost and 24, along with broadband and a telephone line rental to almost five million homes in Britain.

It expects to reach 10 million homes by the end of the year and, of those, it hopes to sign up at least half a million to its internet-based TV service.

The basic Tiscali triple play package will start from £19.99, or £24.99 for faster broadband and

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unlimited phone calls to landlines and some international countries.

For an extra £22 a month, viewers can also have the Sky sports channels which shows two thirds of televised Premier League soccer while Tiscali is also in talks with Irish broadcaster Setanta which shows the other live games.

"By Christmas 2007 Tiscali TV will reach almost 10 million homes and we believe we can offer great value digital TV and the best value Triple Play service in the UK for those who don't want to pay for expensive premium TV, but do want more than Freeview," says Mary Turner, chief executive of Tiscali UK.

The Tiscali TV service will be available outside London for the first time, becoming available in central, north and north west England while locations in the north east and Scotland will be added from October.

A spokesman claims Tiscali already has around 50,000 customers signed up to the TV service, which will also offer free on-demand TV programmes and access to over 1,000 on demand, pay per view movies.

Content and particularly top flight football has become a key factor in attracting customers to television and broadband services, with companies such as BSkyB, cable operator Virgin Media and telecoms group BT all competing for customers.