EIRCOM will provide a new television service from €10 a month that is set to pose a direct challenge to Sky and UPC.
The service, which launches to 450,000 homes today on Eircom's fibre broadband network, will offer up to 100 channels.
It is aimed at transforming the company into the country's first so-called 'quadplay' operator of phone, mobile, broadband and television.
The service launch comes as Eircom steps up its competition with UPC and Sky, both of which have recently invested in additional broadband services.
The new Eircom service, called eVision, will offer two basic packages with 34 and 54 channels, respectively. The entry-level package will cost €10 per month on top of whatever Eircom service the customer is already paying for.
The first six months will be free under a special offer. Incremental services will offer premium stations such as Sky Sports and Sky Movies.
The service will come with a free set-top box, which will be capable of 'pausing' live television and storing up to 240 hours of content.
The packages are aimed at existing Eircom customers.
Non-Eircom customers will need to sign up for a landline to avail of the service.
A spokesman for the company said that the service would not feature single-billing yet, but that this would happen in early 2014.
While the basic package includes BBC and Channel 4, it does not include ITV or Sky News. A spokesman said that licensing negotiations with these channels are ongoing.
"Consumers in Ireland are paying too much for TV," said Eircom CEO Herb Hribar.
"We've listened to our customers and we are giving them exactly what they are looking for."
The service will only be available to Eircom 'eFibre' customers. A company spokesman said that there are currently 450,000 Irish homes which can receive the service, but that this will rise to 1.2 million by 2015.
It is the latest in a series of moves to win a share of the market by communications providers in Ireland.
Earlier this week, UPC announced an increase in its basic broadband speed to 120 megabits-per-second (Mbs) in an attempt to differentiate it from Eircom's broadband service, which can only reach up to 100Mbs.
And Sky has stepped up its investment in broadband services in an attempt to match fibre services on offer from rival companies.