First Utility is diversifying from energy into the broadband market and looking to pose a serious challenge to major providers.
The supplier is offering what it believes is the lowest priced internet deal on the market, which costs £18.99 a month.
As a result, it hopes to tempt consumers away from the likes of BT, Sky, TalkTalk and Virgin Media in order to establish a strong presence in the broadband sector.
Speaking to the Telegraph, Chief Commercial Officer at First Utility Ed Kamm said the decision to offer broadband was driven by growing demand for streaming television services.
"The radical change in our viewing habits highlights why cheaper, faster broadband for all is so vital," he commented.
"It's a utility just like gas or electricity - an essential for a smooth-running home,” Mr Kamm said.
This comes after Cisco predicted that the average internet user in Britain will generate 140GB of internet traffic per month in four years' time, compared with 54GB per user in 2016.
The organisation attributed this in part to a surge in online video usage, as more and more people are using streaming services such as YouTube, Amazon Prime and NOW TV.