BBC subsidiary gets government go-ahead

The BBC has finally received the green light for its high-tech subsidiary, five months after originally planned.

The creation of a wholly owned limited company, BBC Technology, was first announced in July 2000. It had been scheduled to launch in October but the broadcasting giant has been waiting for approval from culture secretary Chris Smith before going ahead. The commercial subsidiary will offer internet services such as web hosting and streaming, consultancy, broadcast and communications services. The unit will be entirely independent from licence payers' money. BBC Technology has already won contracts from US TV companies Fox and DirecTV for consultancy and broadcast services. The company will employ 1,350 staff and is predicting revenue of £185m in its first year. A spokeswoman for the BBC said the delay in gaining government approval would not affect the company's operation.