High-tech companies battle for BBC contract

The BBC is in talks with high-tech companies for the contract to collect licence fee payments. A number of leading IT vendors are involved in the tender process for the multimillion pound contract.

The front-runner is believed to be a Microsoft-backed consortium called Envision. Media giant WPP Group, Bull Information Systems, and the Post Office's Subscription Services Limited (SSL) division - which is currently responsible for collecting the fee - are also members of the group.

The BBC declined to comment on the value of the seven year contract, which it has said could be awarded as early as next month.

The Post Office is also remaining tight-lipped on the negotiations. A spokeswoman said: "The talks are at a crucial stage. We can say no more than that."

EDS and Andersen Consulting are also reported to be in the running for the deal. The BBC would not confirm the names of the companies involved in the tender process.

The BBC said since it took over responsibility for the collection of the fee in 1991 the cost of evasion and collection costs had fallen from 16 per cent to 12.6 per cent of total licence fee income.