Cut-price internet service provider TPG Telecom will take on Foxtel and FetchTV with its own premium television service from early 2015, setting up a three-way telco battle over how Australians tune in to their tellies.

TPG consumer business general manager Craig Levy told Fairfax Media the company had long owned the technology required to broadcast television over its internet services but lacked the content that customers demanded.

“Now we’ve secured premium content and that’s something that will probably be part of a triple play.”: TPG consumer business general manager Craig Levy. Credit:Rob Homer

Internet-protocol television (IPTV) is an increasingly important service used by telcos to keep customers loyal to their brand. Foxtel is due to launch its own "triple play" in 2015 to boost customer numbers by selling pay TV, internet and phone services.

"TPG has been doing IPTV for more than five years now on our network using multicast technology and we have the underlying infrastructure to do it," Mr Levy said. "What we've always lacked is the content.