TalkTalk, Britain's second largest broadband services provider, is expected to launch its own television service by the middle of next year.
The company is the only big ISP without its own TV service, with rivals BSkyB, BT and Virgin Media already offering TV, fixed line broadband and phone services.
According to The Financial Times, the company has awarded the contract for developing its TV content delivery system to telecom equipment maker Alcatel-Lucent. The company believes that Alcatel-Lucent's technology will allow it to make an impact in the TV content delivery market.
Analysts believe that the lack of a TV service is having a negative effect on TalkTalk as consumers prefer to get all their fixed line and TV services from the same company.
TalkTalk's TV service will also benefit from its partnership in the BBC led YouView project, which will allow consumers to access IPTV services from a set-top box. Apart from the TV service, TalkTalk also plans on using BT's fibre network to expand its offering to other parts of Britain.