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Last week, the BBC Trust announced a delay in its formal review of the venture, which is backed by the BBC, ITV and BT. It asked the BBC to provide more detailed information on its plans for Project Canvas before making its final decision. The Trust asked the BBC to provide details on areas such as Canvas' choice of technical standards and the way in which the BBC will work with industry bodies.

It initially planned to deliver a formal assessment of Project Canvas by 24 July, but last week's request for more information means this date is now pushed back. The Trust declined to give a new timetable, although, according to sources, it is expected to deliver its formal decision no later than early autumn, meaning that Canvas should still launch next year.

Some observers, however, warn that the Trust's new deliberations could push back a Canvas launch well into 2010 or even 2011.

But according to those close to Project Canvas, the venture only requires about eight months to launch once approval is gained from the Trust. Once started, it expects to be popular with consumers, with  Canvas-enabled set-top boxes costing about £150. Meanwhile, it is understood that Canvas' backers are open to broadening the service beyond a free model by offering consumers paid-for services and is in talks with BSkyB and Virgin Media about supplying content.

It is thought that ITV will independently lead its own commercial activity on Canvas, with plans to deploy ad formats such as linear, as well as pre, mid and post-video rolls around ITV content.

According to sources, ITV is also planning to use Canvas to deliver targeted advertising via TV - long held to be the Holy Grail of TV advertising.

If approved, Project Canvas, which is only a holding company and a non-profit vehicle to oversee the venture, plans to launch a single brand to position the service to consumers.

Its backers accept, however, that the new brand's positioning will be key so as not to confuse it with the successfully established Freeview and Freesat brands.

The BBC Trust and ITV declined to comment.

BBC TRUST Where does its decision leave Project Canvas?

Key players' divided opinions

Nigel Walley Managing director, Decipher Consultancy
Ofcom needs to become involved. There are lots of unresolved questions around who owns the service, the commercial aspect and who will be there to govern the platform. No one believes that one commercial broadcaster should make the commercial decisions alone.

Andrew Walmsley Co-founder, deputy chairman, I-Level
The fact it is being delayed doesn't mean it's less likely to be approved. It's a much more open platform than Project Kangaroo, but obviously the BBC Trust is sensitive about the forgoes of Kangaroo. Understandably, it's sensitive about having it referred to the Competition Commission, as Kangaroo was.

Ian Maude, Analyst, Enders Analysis
The original timetable for launch was May next year, but that is totally unrealistic. It will more likely be 2011. The stakes are really high for Canvas. The question is how the proposal will be changed, whether it will be as ambitious or if it will be watered down to avoid competitive challenges.

Diane Coyle BBC Trustee
We've been looking at public values, as well as having 60 meet-ings with industry stakeholders. We have lengthened the timetable, but we don't have a deadline, although we hope to respond as quickly as possible. It should not be an extensive delay.

Industry views...

BSkyB The proposals would appear to reach far beyond the minimum required of the BBC to fulfil its primary purpose with the minimum of negative competitive impact, and appear to position the BBC as market maker in an area where commercial operators have made, and will continue to make, significant invest-ments, such that the potential for distortion of competition is manifest.

Virgin Media It has been engaged, and hopes to increasingly engage, with the Canvas project team to ensure a full understanding of it.

IPA We applaud any move that would enhance the health of TV by offering greater choice and flexibility to the viewer. However, we are mindful of the Corporation's historical expansionist tendency to pre-empt and foreclose new media opportun-ities in the commercial sector.

Content is taken from companies' submissions to the BBC Trust probe into Project Canvas