It is also seeking commercial partners to fund and create a free-to-air digital satellite TV platform.
The initiatives form part of the BBC's Digital Switchover Report, submitted to the Department of Culture, Media and Sport on Monday. In it, the BBC warned the government that its target of analogue switch-off by 2010 would be impossible unless it took action to accelerate the public's conversion from analogue to digital TV sets.
BBC director of marketing and communications Andy Duncan refused to put a figure on the campaign, but estimated the government money needed would total 'hundreds of millions.' This would include the cost of a department to manage the switchover and subsidies for digital transmitters.
Duncan said a free-to-air satellite platform was needed to augment the Freeview digital terrestrial platform, as only 75% of viewers can receive the signal.
A Sky spokesman said it would give the BBC report due consideration.
Sky will be concerned that a free-to-air platform does not allow commercial broadcasters to offer cut-price pay-TV.