BBC could face competition for funding in digital world

by Staff, Brand Republic 24-Nov-08, 11:50

LONDON - Lord Carter, the newly installed minister for technology, communications and broadcasting, has suggested that the BBC could face competition for state funding of public service content in a digital world.

Stephen Carter, former head of Ofcom, did not refuse to rule out the possibility of splitting the licence fee once after the digital switchover date in 2012 passes.

Carter said: "Parliament very recently had that debate and decided against contestability [of funding].

"Does that mean that, for ever and a day, if looking at funding structures you would rule out any form of sharing the licence fee? I don't think it would be sensible to do that."

Carter's comments come as the BBC is besieged by negative press following the Jonathan Ross and Russell Brand scandal.

On Friday, the BBC Trust criticised management failures throughout the affair, at the same time as preventing the corporation from ploughing ahead with its £68m plan to launch a network of local news websites with video content.

Carter also said that money set aside to fund the digital switchover until 2012, could finance alternative funding for public service content in the present.

The £600m ring fenced to fund the switchover was added to the BBC's licence fee settlement in 2006.

Those arguing for extra funding include Channel 4, which has already asked for state help as it battles an advertising downturn.

In an action plan due to be published at the end of January as part of Carter's Digital Britain report, digital radio stations and local newspaper groups could be among those included in the debate.