Siemens will design, build and operate a new coding and multiplexing infrastructure, delivering a managed service until 2015.
The project will enable the BBC to accomplish its transition from analogue to fully digital broadcasting. It is one of the largest and most complex coding and multiplexing projects worldwide.
Coding and multiplexing is the complex process of compressing and processing the various elements making up outgoing television signals into a form suitable for transmission to digital terrestrial and digital satellite set-top boxes.
Through the deal, the BBC will replace and consolidate its coding and multiplexing infrastructure and expand its transmission capacities at the same time.
The contract with Siemens gives the broadcaster the ability to deliver high power digital terrestrial television that by the end of 2012 will reach 98.5% of the UK population.
Siemens IT Solutions and Services will complete the implementation of the solution within two years and run it as a managed service until 2015.
The BBC was recently slammed by the Parliamentary Accounts Committee for overestimating the savings to be made from a previous larger IT outsourcing contract.