The service will be available to Vodafone contract customers from January 8 next year and will cost £25 a month.
For that fixed price, customers will receive unlimited broadband up to 8Mb and inclusive landline calls at any time to any UK landline, as well as 25% off calls to mobiles.
To ensure ease of use, Vodafone will prepare the modems for set-up before they are issued and provide a UK-based 24-hour technical support line and online service.
Vodafone will also offer customers a 30-day money back guarantee, with the service available to an estimated 97% of UK households from launch, due to a deal struck with BT Wholesale's broadband network announced in September 2006.
Vodafone at Home customers will receive free connection from the start of the service, free Norton Internet Security 2006 software for six months including anti-spam, anti-virus and parental control software and the facility for 10 email addresses.
Wireless access will also be offered for Vodafone contract customers.
Tim Yates, director of Vodafone UK's Consumer Business Unit, said: "The way we're packaging and delivering Vodafone at Home ensures our customers get the best experience when they buy broadband.
"With our managed rollout and commitment to customer service, we are confident that we will be able to manage demand.
"By working with BT we will be providing a market-leading mix of quality, value and service. Vodafone at Home will provide nationwide broadband coverage from day one, as well as offering the flexibility and convenience of going wireless at home and being able to access the internet on laptops when out of the home on Vodafone's 3G broadband network."
Last month, Charles Dunstone, the Carphone Warehouse chief executive, inked a £370m deal to buy the UK operations of AOL in a move that will make the telecoms firm the third-largest supplier of broadband in the UK, behind BT and NTL/Telewest.
Virgin Media, the combined NTL Telewest and Virgin Mobile service, will also fuel the market battle when it launches in the first quarter next year with its "quadplay" offer of digital TV, broadband, mobile and home phone.
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