Basic Foxtel, which includes 43 channels, with a standard home phone, including unlimited local and national calls, and a 50 gigabyte broadband plan, will cost $90 per month. With 100GB, 200GB and 500GB plans, customers will pay $95, $105 and $125, respectively.

Foxtel is facing greater competition, increasing the pressure to penetrate Australian households, which has been stuck below 30 per cent.

Customers signed up to broadband are less likely to dump their subscriptions.

Foxtel chief executive Richard Freudenstein introduced broadband to BSkyB's offering when he was chief operating officer of the British pay TV operator, with significant success.

"The bundled pricing and the ability to unmeter content should be very compelling for Foxtel customers," Foxtel chief operating officer Rohan Lund said.

"There has been massive expectation from our customer base for this. We already have a huge pre-registration list to provision which will keep us busy for some time to come."

Subscribers to Foxtel's broadband service will have access to the Foxtel Hub. Its new Wi-Fi modem is designed to make streaming faster across a home. The hub will connect with a range of Foxtel's iQ devices and will have no data download limits for Foxtel Go and Anytime when connected to the pay TV provider's broadband service.

Foxtel's broadband offering will initially be available over Telstra's ADSL network and more bundles will be launched over the national broadband network in 2015.

The move comes as international SVoD player Netflix plans to launch in Australia in March, along with more local players popping up or improving their offering.

Foxtel's Presto TV has upped its content thanks to a joint venture with Seven, and Stan, a joint venture between Nine Entertainment and Fairfax Media (owner of BusinessDay and The Australian Financial Review) will move to capture part of the market. The price of Netflix is yet to be announced but it is believed to be the same as Presto TV and Stan, which cost $9.99. Bundling Presto TV with movies is $14.99.

In 2014, Foxtel slashed the price of several offerings in anticipation of greater competition. It cut the price of a basic cable TV package by 50 per cent to $25 per month.

Mr Lund said sales since the pricing change exceeded Foxtel's high expectations.

Fetch TV chief executive Scott Lorson believes the battle for broadband in Australia will heat up with a renewed push from Optus under new chief executive Allen Lew and Foxtel's entry into the market.

"There would appear to be a new-found aggression and higher market share expectation under Allen's leadership," he said.

"We think his appointment will be one of the three things that profoundly change the Australian broadband market in 2015; the other two being the NBN gathering pace and Foxtel's pending launch of broadband."

However, a senior industry analyst, who declined to be named, said to get people to move providers there would need to be a bigger discount on Foxtel's bundle.

"They're not going to blow anyone out of the water on value. They'll bundle a few people up and argue it's good for their churn. All the stats say that the more services you put on them, the less likely customers are to leave. But I wouldn't expect this to be too disruptive."

Telstra's 50GB broadband plan with phone line rental is $73 per month, while Optus offers unlimited data, unlimited local and national calls and its Optus TV and Fetch Entertainment Channel pack for $90 per month.