Media: All about ... The launch of BT Vision.

Can the telecoms giant's new service crack the TV market, Ian Darby asks.

In the old days, when the utilities had monopolies, you knew where you were with BT. Salt-of-the-earth characters such as Bob Hoskins coaxed us into spending more time on the dog and bone with dear old mum and that was about it.

Things are obviously more complex these days as BT diversifies in the face of increased competition in its core telephony area. Its latest move is into the television market with the launch of BT Vision. It is expected to be unleashed in September although an exact date has not yet been confirmed.

The service will offer subscribers a set-top box that will combine a basic Freeview package with a more advanced internet protocol TV service that BT argues offers more advanced interactivity than rival offerings. BT has been talking up the interactive nature of the service. Ben Verwaayen, its chief executive, has claimed the service is not a direct rival to Sky because it offers a more personal experience.

BT Vision's content will combine digital TV with on-demand films via a broadband connection as well as music and radio. BT's set-top box will also provide a personal video recorder service.

It is set to get out into the market and talk to advertisers about BT Vision and its big sell will be interactivity around content. Paul Longhurst, the media consultant who has worked with BT on projects, says: 'It will be a specific sell about involving advertisers more closely with content.'

Critics argue BT will struggle to turn a profit with the service, with some analysts estimating that it will have just 800,000 subscribers by 2010. Compare this with Sky's target of ten million.