BBC are planning to start releasing mobile applications starting with a BBC News application for the iPhone followed by applications for Blackberry and Android devices. Once their first application is released they are planning on developing further applications for Sport news and iPlayer.
The problem however is that most newspapers are opposing the plan and are petitioning to the BBC Trust to cancel their plans. From the newspapers point of view they get their revenue by charging people for the news and have not yet managed to find a suitable business model that works in a digital world. There are already iPhone apps for news such as the free on from the Daily Mail, and the paid-for one from the Guardian. I think the newspapers are worried that people associate the BBC brand with good quality and so think that if they can get good quality and up-to-date content for free then why would they want to pay for it. That is a good question though, in a connected world why pay for news when you can get it for free?
Personally I don't see their problem - most people have a web browser on their phones these days and could easily access the BBC's data using either RSS or by visiting their site. By making an iPhone application they are making it easier to access, and hopefully will be enriching it with better search options at the least.
Interestingly, overseas I think it will be possible for BBC to charge for their applications which could be tricky for them to deal with if they chose to. The argument for charging for the apps in the US and other countries if they are made available is that in the UK the BBC's programming is covered by the license fee and so are not allowed commercials or paid-for content over the air.
