Microsoft teamed up with UK incumbent telco BT on Monday, announcing a plan to deliver IPTV and HD movie services to Xbox 360 users.

The partnership will enable BT Broadband customers to use an Xbox 360 to access the BT Vision IPTV service and its library of on demand content.

The service will be made available to customers in the middle of 2008, the companies said.

BT Vision is already powered by the Microsoft Mediaroom Internet Protocol TV (IPTV) platform, so the new service allows customers the option of accessing BT Vision from either the Xbox 360 or a set top box.

Last month, BT began a three month trial of ad funded video services through its BT Vision Download Store.