The BBC said the technology would be future-proofed, with high definition and personal video recorder compatibility built in.

A one-off initial payment would cover the cost of equipment and installation, with the kit being marketed through retail outlets and via the internet.

"The BBC's Royal Charter requires the corporation to take a leading role in digital switchover which begins next year,” said Chitra Bharucha, acting BBC chairman.

“For those seven million homes yet to make the switch, it needs to be clear that the benefits of digital television do not need to equal ‘pay television’.” 

The BBC hopes to establish a joint venture company with other public service broadcasters to manage the marketing and technical aspects of the new platform.

Digital switchover begins next year, with the analogue services being switched off completely in 2012.