Telstra has launched an IPTV set-top box that can pull down a range of internet content and record live TV. This launch is an assault in a certain way on TiVo and even its own pay TV operator Foxtel.

The Telstra T-Box is a determined assault into the now crowded set-top box world that will let BigPond customers watch seven BigPond TV channels and download movies on-demand, directly to their TV. It will be available later this month for a total of $299 with no ongoing subscription.

It includes a 320GB hard drive and is equipped with a personal video recorder, which allows users to record pause and rewind live TV through twin HD tuners. BigPond will be able to extend its tentacles further into Australian living rooms, with the help of the box and compete face-to-face with TiVo, Foxtel, as well as Fetch TV IPTV box which is being sold through opponent ISPs including iiNet.

Telstra half-owns TiVo and Foxtel.

The online video stores operating on the Xbox 360 and PlayStation 3 games consoles are also its strong competitors.

Telstra has exclusive rights to AFL, NRL and V8 supercars; hence T-Box TV channels are heavily centered on sport. Without eating into their monthly download quotas, BigPond customers will be able to access all of the content.

Chris Taylor, Director of Telstra's media division said, "The competition like Fetch are delivering third-party pass through channels like National Geographic and Disney ... we will look at that and are continually talking to all of the distributors".