The digital service will see the development of an online resource providing interactive learning materials on the internet that will support the school curriculum.
The decision will anger commercial publishers of educational materials, who have been lobbying the government to stop the BBC's plans.
In order to placate and protect the commercial sector, Tessa Jowell, secretary of state for culture, media and sport, has imposed as many as 18 conditions on the platform after listening to the commercial sector's concerns. "There is room for everyone. These conditions will prevent the BBC from dominating this market, but it's right that it should play an important role in a competitive and growing market for digital learning resources," Jowell said.
Shadow secretary of state for culture, media and sport John Whittingdale said that the conditions would be "insufficient" to stop the BBC competing unfairly with existing commercial providers of educational software.
Whittingdale used the news as further fuel to support the argument that the BBC should be brought under the control of Ofcom.
He said: "It is indefensible that the government is unwilling to give this responsibility to its new communications regulator and is refusing to allow any independent adjudication of complaints about the BBC's activities."
Among the conditions imposed by Jowell is the obligation to spend half of the programme's £90m budget for content on commission services from the private sector.
Other conditions are concerned with standards, and the service will be reviewed after two years to monitor whether the BBC is meeting the conditions.
BBC director general Greg Dyke welcomed the decision. "[These conditions] will enable the BBC to build partnerships across the industry to launch a service that will make school curriculum content compelling and exciting for children across the nation."
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