Telstra broadband customers with T-Box devices will be able to get Foxtel content over the Internet for an additional fee.
The announcement comes after an agreement between the two companies. The service will be launched in May 2011.
According to a statement from the telco, around 30 Foxtel channels will be available to users.
Downloaded content will be unmetered via BigPond ADSL and cable broadband services.
Telstra CEO, David Thodey, said more than 120,000 Australian households had the T-Box.
He claimed the move was part of “a new era of Internet-delivered home entertainment.”
Telstra owns 50 per cent of Foxtel and some rivals see this as an unfair commercial advantage.
Rival telco, TPG, has offered Internet-streamed television for some time and some providers give users unmetered access to the ABC’s iView service.
According to a spokesperson for Telstra, the pricing will not be released until later this year. They said the deal had been “complex” and could not say how long it had taken to finalise.
Channels set to be provided include Fox 8, Discovery Channel, Fox Sports and Showtime Premiere.