Foxtel is preparing to drop the price of its premium pay television service below the $100 mark to counter cheaper competition in pay TV.

The joint venture between News Corp and Telstra is gearing up for a massive advertising campaign as it prepares to launch its broadband service, designed by former Seven West Media executive Rohan Lund.

The new bundles are set to see the price of a traditional premium Foxtel subscription fall below $100. Credit:Rob Homer

It is understood that bundles for "triple play" Foxtel – pay TV, broadband and telephone – will be structured to cut the price of a traditional premium Foxtel subscription to below $100.

There is speculation the company may give users more options to pay for Foxtel shows on different devices.