Telecom company Perlico, which is backed by businessman Dr Michael Smurfit, is planning to launch cut-price phone calls, video on demand and television services over the internet.

Perlico, which has 70,000 customers, said it would offer a free trial to every Irish home with broadband access in early 2008. About 800,000 homes in Ireland are expected to have broadband by the end of this year. Iain MacDonald, Perlico's chief executive, estimated that the move would require a €1 million investment by the company.

"This will be the first tangible representation of the movement of telecom services onto an internet-based delivery platform," Mr MacDonald said.

Customers will be able to purchase the services individually through Perlico's website. For €25 a month, people will be able to make unlimited calls to any landline in more than 20 countries.

Mr MacDonald said Perlico was negotiating content rights to films and expected to have a library of 1,000 films available to download. Sports clips and live streaming of television programmes from around the world will also be available.

Perlico claims to be the second-biggest telecoms operator behind Eircom.