Broadcasters welcome Ofcom's report on future of PSB and Channel 4

According to Airey: "It's good to see Ofcom recognising the contribution Five makes and can continue to make in public service broadcasting -- whether as an independent commercial player or as a partner in a new body that also includes Channel 4.

"In either scenario, we will deliver real and sustainable public service value to viewers.

"Five has a strong track record commissioning fresh perspectives in news and factual programmes, and is the only mainstream commercial channel to continue providing original children's programmes. These are all part of our public service contribution."

Duncan said Channel 4 also welcomed the proposals and particularly the references to partnering with BBC Worldwide.

"We welcome Ofcom's very thorough report, which makes the recommendations needed to respond to the 'huge changes brought about by the transition to the digital era'.

"Ofcom strongly endorses the value of public service broadcasting, the need for competition with the BBC and the central role of a publicly-owned Channel 4 with its 'established track record of delivery', at the heart of a ‘financially robust alternative provider of public service content’."

He said that C4 looked forward to further conversations with the BBC and Government to move this forward, so that we, as a country, can move from the words to the actions."

ITV welcomed the report and stressed the challenges faced in regional news.

A spokesman said: "The whole free-to-air PSB sector is facing unprecedented structural changes and the commercial sector has to contend with the recession as well. Ofcom’s report today demonstrates that it understands these difficulties and is working with all the players to find short and long-term solutions.

"So far as ITV is concerned, Ofcom has concluded that ITV regional news is unsustainable in its current form after 2010, and we will now be studying the detail of its progressive proposals for the delivery of a sustainable regional news service from 2011."

In a statement the BBC Trust said it welcomed Ofcom's report and said it accepted the BBC's position as the cornerstone of UK public service broadcasting and the responsibilities that come with that to help support the wider future of UK public service broadcasting.

The BBC Trust said that discussions last year with Channel 4, which came to nothing, did not rule out new talks suggesting it is open to negotiations with Channel 4 on any wider tie-up.

"In depth discussions last year between BBC Worldwide and Channel 4 identified partnership opportunities with a value to Channel 4 of between £10m and £25m a year. Benefits from other BBC partnership proposals would also flow to Channel 4 - making the total value to Channel 4 from BBC partnership proposals an estimated £50m a year.

"In further discussions since the partnership proposals were launched, new ideas have emerged to enable the two organisations to work even more closely together. Both sides are now exploring the opportunity to commit parts of their current UK businesses to new ventures in order to create new value for both organisations. These proposals would not necessarily preclude other potential ideas raised by Ofcom, such as a structural solution involving Channel 4 and Five."

The report also drew a comment from Conservative Party Shadow Culture Secretary, Jeremy Hunt. He said: "Ofcom has rightly recognised that viewers want competition and choice in public service broadcasting and their report outlines a number of interesting options for the sector. It is now up to the broadcasters to play ball.

"The BBC needs to stop playing the role of the friendly monopolist and Channel 4 must be much more creative in reinventing their business model. We need action not words from both broadcasters if we are to secure the future of a competitive public service broadcasting sector."