The BBC has poached a senior ITV executive to be the project director of its controversial Digital Curriculum initiative, 14 months after it was given the go-ahead to launch the £150m service.

Anne Eastgate, a development director with Granada Learning, will join the BBC in May to head the online education project, due to launch in 2006 following trials in schools.

She will oversee the development of the service, including commissioning the editorial content that is expected to come from the BBC and independent suppliers.

Commercial education suppliers threatened legal action against the BBC, arguing the corporation's free service would irreparably damage paid-for commercial offerings.

In an effort to limit growing concerns about the increasing commercialisation of the BBC, the culture secretary, Tessa Jowell, attached what she described as the "strongest ever series of conditions" to the project.

"The industry is a rapidly expanding one and there is room for everyone," she said.

Although the threat of legal action was withdrawn, the BBC still found itself embroiled in controversy when it admitted it had spent £60,000 developing the service before being given government approval.

The corporation had earlier said in court it would "not incur any expenditure or undertake any activities... until such time as the Secretary of State had granted approval".

Michael Stevenson, then the BBC's joint director of factual and learning, later resigned, admitting he had "made an error of judgment".

Ms Eastgate said the Digital Curriculum would "pioneer new standards of interactive education" adding: "It has the potential to transform the learning experience of children and adults."

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