The educational software industry in the UK could lose �400m worth of work if the BBC is allowed to dominate the government's plans for a digital curriculum for schools, it is estimated.

A report by the independent SRU consultancy, commissioned by leading private companies, also says a BBC dominance of Curriculum Online could mean fewer quality resources for teachers.

The report was commissioned by the Digital Learning Alliance (DLA), a consortium of the leading UK educational software and book publishing industries.

Its co-chair, David Haggie, said there were already 150 firms providing digital learning resources to schools throughout the UK.

"The SRU report is a timely reminder to the government that the ultimate success of Curriculum Online and the ability to offer UK schools the best possible products for learning means that there has to be a level playing field between all partners in this project."

School credits

The report concludes: "Government policy will not achieve optimal educational outcomes if it stifles the current choice and diversity in the market, so it needs to provide the conditions for the private sector to continue operating.

"There is consensus that it is undesirable for the BBC to become the sole or dominant supplier."

The estimated �400m loss of business over five years would represent two thirds of the expected market.

Fears were raised by the independent sector from the outset.

BBC bid

The government set aside �50m for schools to use to buy their own resources.

The SRU report says at least �800m should be set aside for these "electronic learning credits" over five years.

The BBC has asked for government approval to spend �150m of licence fee payers' money on developing school curriculum software.

In a statement, the BBC said: "We have consulted widely in framing our proposition and remain confident that the BBC's proposal would be beneficial to both schools and the market.

"We have stressed all the way along that we want to work in partnership."