AT&T will begin its expansion into television, with the "Homezone" service expected to launch in July. The offering will combine EchoStar's DISH Network service with the capability to download movies and videos from the Internet, sources told the Wall Street Journal on Monday.

Initially, just content from partner Movielink would be made available through the download option. AT&T plans to eventually make thousands of TV shows and other video clips available through the service.

Homezone is the first step in an eventual plan to offer television services through upgraded lines in AT&T's network. But unlike Verizon's fiber-optic approach with FiOS, AT&T is using standard Internet technology to deliver video signals.

By the end of this year, about 80 percent of the locations capable of receiving AT&T DSL service would be able to sign up for the new TV option. The next-generation service, dubbed Lightspeed, would not be available until the middle of 2008, and only to 19 million homes in 13 states.

Pricing for Homezone has still not been announced, although it is believed to be competitive with cable offerings. A subscription will also require AT&T's high-speed Internet service.

Users would additionally be able to view services from Yahoo on their television set through AT&T's continuing partnership with the company. Content from Akimbo, which has Internet distribution rights to shows from A&E, BBC, CNN Discovery, and the History Channel will be available as well. AT&T signed a deal with the content provider in April.