The BBC is calling a summit meeting for TV equipment manufacturers in an attempt to thrash out a workable framework for introducing cheap adapters to upgrade TVs to digital.
The new adapters, less than the size of paperback book, will allow viewers to tune in to existing terrestrial channels and other free digital channels such as ITV2 and the soon-to-be-launched BBC3, BBC4 and children's channels.
The BBC and Flextech have also intimated they want to broadcast their joint venture UKTV channels such as UK Gold and Play UK on the free-to-air digital spectrum.
It has also been suggested Sky may take up a place on the spectrum as a revenue earner and a promotional tool for SkyDigital.
In all, there will be room for around 20 channels before analogue switch-off and around 40 afterwards.
Costing less than £150, the government and the BBC hope the new breed of adapters will appeal to those who have not yet been attracted by pay-TV.
They hope the prospect of a up to 20 free channels may pull in millions more viewers and bring forward the date for switching off analogue TV.
According to sources, the meeting will take place on November 29 and five or six companies who are already well advanced in their plans to launch the devices will attend.
The BBC plans to target next March as the initial phase of a campaign to educate the public about the benefits of free-to-air digital TV.
Recent speculation has centred on the fact the BBC is set to team up with ITV, Channel 4 and Channel 5 to launch their own subsidised free-to-air box.
However, manufacturers suggest while all the broadcasters will play an important advisory role in developing a free-to-air solution they are unlikely to take an active role by building their own box.
Pace, the country's biggest set-top box manufacturer, has warned that the UK will lose its lead if the government and broadcasters don't act decisively, while NovaPal, another UK company, hopes to have a product, Set Pal on the shelves by next March.
"Free-to-air has not been promoted as an option up to now at all," said Dave Yorath, who is advising NovaPal on the launch.
"Everyone is waiting for someone else to make the next move. The key thing is to make affordable boxes available to the public and to get a good package of channels available."
Oliver Durkin, a partner at NovaPal, added: "Beyond the first Set Pal, NovaPal is hoping to introduce higher specification models. If retailers are signed the box could hit the shelves by March next year at the earliest."
