Culture Secretary Tessa Jowell has approved BBC Three on the basis that the new TV channel is "genuinely distinctive, genuinely public service and genuinely innovative".
She has attached 12 conditions - which the Department for Media, Culture and Sport says must be observed "in good faith".
BBC Three must:
Maintain high general standards (and in particular in content, quality and editorial integrity) Deliver the format as proposed for the service and meet all the commitments set out by the BBC, including those on expenditure on independent productions, regional production and EU/EEA programming Within its designed scope, stimulate, support and reflect the diversity of the UK Promote the understanding and enjoyment of the service by viewers with sensory impairments Campaign, with the rest of the BBC, to promote the uptake of digital television, radio services and equipment Deliver a mixed schedule of programmes embracing drama, entertainment, news, current affairs, education, music, the arts, science and including coverage of international issues - including 15 hours covering science, religion/ethics and business Not deliver the schedule at the expense of programmes on BBC One and Two catering for the 25-34 age group - while also making programming for young adults available to BBC One and Two Commission 25% of the service's output from the independent sector, with no reduction in the contribution made by other BBC channels to the BBC's overall 25% independent production quota - and spend at least one quarter of the BBC Three programme budget on independent productions Ensure that 90% of programme hours for the service are made in the EU/EEA for first showing in the UK, while also producing 33% of the channel's eligible budget from outside the M25 from 2004-5 Produce programming of a consistently innovative and risk-taking character, with 80% of the service's output consisting of programmes specially commissioned for BBC3 and genuinely new to television Be monitored by the BBC Governors to ensure implementation in line with the BBC's commitments and the conditions set Undergo a review by the secretary of state after two years, to ensure the BBC is meeting these conditions.