Bigpond is offering FOXTEL over its ADSL and cable broadband services through the T-Box.
Telstra customers will see 30 of FOXTEL's channels, including FOX Sports Play, Movie One and Showtime Premiere streamed unmetered to their set-top T-Box.
Telstra chief executive officer, David Thodey, said: "With T-Boxes in close to 120,000 Australian homes, Telstra is helping to usher in a new era of internet-delivered home entertainment across Australia.
"For many customers it will open up an exciting world of affordable internet delivered home entertainment."
FOXTEL chief executive and managing director, Kim Williams, said: "For those Australians who may not yet be ready to take the full FOXTEL service – with its choice of over 200 channels, 20 HD channels and full digital recorder functionality – or those who may want to focus on a condensed service and internet delivery, then FOXTEL on T-Box offers a superb alternative that will connect strongly with their wants and needs."
The Telstra T-Box can pause, rewind and record live free-to-air TV, with storage of up to 100 hours of content. Telstra said more products, including IPTV-enabled televisions, will be announced in the coming months.
Australian broadband customers are starting to see more choice in television services delivered over the internet (IPTV).
Customers of other Internet Service Providers (ISPs) can subscribe to FOXTEL channels and movies on demand through their Xbox, while iiNet offers a competing TV service on fetchTV.
Internode also has plans to introduce fetchTV services, while TPG is trialing its own IPTV service, offering free TV channels to eligible ADSL2+ broadband customers.