BBC under pressure to fund digital

THE Government is urging the BBC to press on with the sale of its commercial arm - despite increasing reluctance from management - to help the corporation pay its share towards a national digital television network.

The full cost of switching from analogue to digital is likely to run into hundreds of millions of pounds, according to internal estimates at the BBC.

This will include upgrading transmission masts and a nationwide advertising campaign to inform consumers of the changes.

The BBC is committed to playing a lead role in the transition to digital broadcasting, which the Government has said is likely to happen by 2012.

Though the corporation will not shoulder the entire costs, which will be met by a consortium of broadcasters, transmission companies and retailers, its bill is likely to be considerable.

Sources now say that the Government has made it clear to the broadcaster's management that its share of the costs should be taken from funds raised through the sale of all or part of BBC Worldwide, the corporation's commercial-arm, rather than from licence fee income. The future of BBC Worldwide is currently under review.

The BBC is preparing for the renewal of its charter in 2006.

A source said: 'Gordon Brown wants the BBC to put up a lot of the money to get to the switchover point sooner rather than later, but he does not want the public to foot the bill through the licence fee.

'Selling Worldwide, or parts of it, would allow the BBC to raise the money for that.'

BBC Worldwide has been valued at up to £2bn. The corporation's director-general, Mark Thompson, has indicated that it is unlikely that all of Worldwide would be sold.

The BBC said the costs of switching to digital were still being calculated.

The Government said the BBC was independent and it would not interfere in its decisions.