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The move comes after the BBC Trust gave Freesat provisional approval last month, paving the way for a 28-day public consultation.

Following the consultation, the BBC Trust has asked BBC management to plough ahead with plans without delay "to ensure that licence fee payers gain the maximum benefit in the lead up to digital switchover", raising the possibility of Freesat becoming available in the next 18 months.

The move will pose a threat to BSkyB and Virgin Media, neither of which will welcome a new competitor in a tough marketplace.

While Freesat already has the support of ITV, Channel 4 and Five remain tied to contracts with BSkyB, and these are not expected to expire until 2008.

The BBC Trust said the open consultation produced overwhelming support for Freesat. In response to concerns that it was not the role of the BBC to create additional choice for consumers from public funds, 93% of respondents in the consultation said the proposals were in line with the corporation's public purpose.

Other concerns have been raised about Freesat giving commercial rivals unfair competition, which could lead to the market exit of existing participants, an argument considered "unlikely" by 90% of respondents.

Chitra Bharucha, acting chairman of the BBC Trust, said: "Freesat is guaranteed to remain subscription-free, ensuring that the benefits of digital television do not equal 'pay television'. The results of the public consultation have reinforced our view that the BBC's proposition for Freesat will create significant public value.

"Freesat will also deliver more choice to consumers and introduce competition to the market, and while we welcome this positive impact, it is not the objective of our decision."

The BBC believes Freesat will give the consumer more choice. The viewing card-less system will operate in the same way that digital terrestrial service Freeview does. It will enable viewers to access channels from the BBC and other public service broadcasters via a satellite dish and set-top box.

However, critics of Freesat argue Sky's free satellite offering is already capable of meeting consumer demands and that no alternative is necessary.

In March, an independent report for the BBC Trust and the BBC Governance Unit, compiled by Fathom Partners, said that without a significant high-definition offering, Freesat is unlikely to attract more than 600,000 homes after six years.

It is estimated there are currently 815,000 free-to-air satellite households in the UK.