Known as Project Canvas, the BBC-led plans could see on-demand TV, radio and high-definition services available via TV sets by 2010. It would combine digital terrestrial TV with broadband capability in a next-generation set-top box.
Project Canvas forms part of the BBC's proposals for partnerships with commercial public service broadcasters aimed at ensuring the future provision of PSB content. It is thought that other proposals include some form of merger or combination between Channel 4 and BBC Worldwide.
The BBC has applied to the Trust for permission to form a joint venture that would set and promote a common standard for delivering on-demand TV and other internet content through a broadband connected device, such as a set-top box. The BBC would not be involved in the manufacture or distribution of equipment.
The Trust will decide whether or not to approve the proposals, following two periods of public consultation, and will report in the summer.
Diane Coyle, BBC Trustee, said: "The Trust has challenged the BBC executive to come up with proposals to help bring the benefits of the BBC's public investment to the whole PSB sector.
"This is the first of these proposals to come forward to the Trust and we will be scrutinising it to ensure the best possible outcome for licence fee payers. We are now inviting all interested parties and members of the public to tell us what they think of the proposal."
The BBC has estimated that initial devices (which would be set-top boxes) would cost consumers in the range of £100-£200 at launch in 2010. In order to access on-demand services, users would also have to pay their internet service providers for broadband access.
The BBC estimates that its contribution to the cost of the venture would be around £6m over the next five years.
Erik Huggers, BBC director, future media & technology, said: "This proposal is founded upon partnership and comes at a time when commercial public service broadcasters are facing unprecedented challenges.
"While audience demand for high quality public service broadcasting remains high, the ability of the commercial operators to deliver is seriously threatened by a changing media landscape and the difficult economic climate.
"Innovation is in the BBC's DNA, and with our funding model and great content, we're in a unique position to innovate for the benefit of everyone."
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