BT, which is launching IPTV services later this year, has announced it will call its service BT Vision. The service will combine Digital Terrestrial Television (DTT) with on- demand film, TV and music programming, as well as interactive services. While BT is stressing that its service is more complementary to BSkyB rather than competitive, it is a significant market entrance. BSkyB has also acquired Easynet so it could well look to compete more with BT in the IPTV space going forward.

The announcement comes just days after U.K. communications regulator, Ofcom revealed that digital satellite is now the U.K’s most popular television platform. In an important milestone, Ofcom revealed that there there are now more digital satellite subscribers in the United Kingdom than there are homes watching analogue terrestrial-only TV, as a result of continued growth in BSkyB’s subscriber base and large numbers of households switching from analogue terrestrial television to DTT services.