[LONDON, ENGLAND]The BBC is to set up a new independent commercial subsidiary, BBC Technology Limited, which will provide a number of Internet, broadcast and media services.

The announcement comes further to approval from Chris Smith, the Secretary of State for Culture, Media and Sport, after the BBC announced its intention to launch the service in July of last year.

The BBC is setting up the company to exploit the communications advances offered by digital technology; BBC Technology will aim to give companies - as well as continuing to provide these services to the BBC - technological assistance in the management, creation and distribution of media and media services, by giving them access to its engineering skillbase. The company is independent and will not be funded by the licence fee.

BBC Technology will be composed of six business areas, including Internet Services to provide Web hosting and streaming media delivery, and will employ approximately 1350 staff, and the company expects first-year turnover of #185 million.