The debut of the TV-on-demand service is set to be delayed to late 2011 or early 2012 due to technical issues, the Daily Mail has revealed.

Project partners, BT and TalkTalk, were hoping to launch the YouView set-top boxes early in 2011, but the venture is set to be delayed by six months or more.

The new enterprise was meant to further develop the on-demand TV market, enabling viewers to gain access to UK TV channels, such as the BBC iPlayer, by plugging a device into their television or broadband connection.

It would also be possible to watch online content from the likes of Youtube via the YouView box, thereby offering consumers TV services comparable to those delivered by Sky.

The set-backs in launching this project are expected to hit BT particularly hard as the provider was hoping that the new service would boost its current TV deal, called BT Vision, the Daily Mail reported.

"We hope to launch this summer, however the most important consideration is to get the service right," a BT spokesman said.

However any further delays in delivering the YouView boxes can cause even more damage to the project partners as this year's Consumer Electronics Show has already presented numerous devices by leading TV manufacturers which offer a similar service.

According to the Daily Mail, there is a possibility that the venture may launch a little too late at a time when other TV-on-demand set-top boxes would have already taken over the market.