The BBC led YouView is now set to launch in 2012 having reportedly been delayed by six months.
According to The Telegraph, the YouView set-top-box service, which is being developed by the BBC and its partners under Project Canvas, was meant to be launched in July this year.
YouView has now being delayed for further six months after it failed to meet the standards set by the Digital TV Group (DTG). The set-top box is also having some functionality issues.
"It just doesn't work when you turn it on and keeps crashing," A senior YouView executive told The Telegraph.
“You would think that after at least 18 months of development and at least six million pounds worth of investment from each shareholder, the box would actually work when being shown to its owners.”
With the delay, analysts believe that the service could become increasingly obsolete.
Head of Internet at Enders Analysis Ian Maude said: "The later YouView leaves it to launch, the market opportunity will shrink, with consumer demand being soaked up by other services and web TV applications."
"If they can't get it out before the Olympics, which is looking less and less likely, I wouldn't bother. It's a badly kept secret that the team are considerably behind schedule and have yet to agree terms with the DTG."