Top-Up TV will undercut its rivals by offering Sky Sports 1 at £22.99 a month, the cheapest price for access to a TV-only service.
Unlike its rivals Sky, Virgin Media and BT, Top-Up TV does not offer bundles of services such as broadband and telephony.
Instead, it is targeting sports fans in 12 million Freeview households who want access to TV sport without having to pay for long-term contracts or bundles.
Sky Sports 1 will be available for £22.99 a month, a pack with with Sky Sports 1 and 2 will cost £31.99 and a triple pack including ESPN will be £39.99.
BSkyB offers Sky Sports 1 or 2 for £29, or a pack with all four sports channels, Sky Sports News, broadband and telephony for £38 plus £11 line rental.
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Virgin Media charges £13.50 for Sky Sports 1 or 2, but this must include its basic TV channel package for an extra £11 (£24.50 in total).
BT Vision offers Sky Sports 1 and 2 for just £6.99 with ESPN and on-demand sport thrown in. Sky Sports 1 and 2 combined cost £11.99.
However, to get these heavily-disounted packages BT customers must agree to a 24-month deal and pay £11.54 in line rental and £17.99 for a TV/telephone/broadband pack.
Earlier this month a price war broke out between BT Vision and BSkyB over Sky Sports.