Q&A: Public service broadcasting

The BBC response was that current arrangements were "working well" and governors saw no reason to change them.

The body also found that the BBC should be subject to the same rules in matters of competition as its rivals.

Ofcom published its final conclusions on the future of public service broadcasting on Tuesday.

The report maintained that the BBC should remain "strong, independent and properly funded by the licence fee".

Complex relationships

They have ruled out assuming any responsibilities for the governance or management of the BBC.

Ofcom said that any intervention would confuse an already "complex and imperfect set of relationships" at the corporation.

However, it believes it should assess the impact of new BBC services such as online and digital TV on commercial rivals.

The BBC said: "The current arrangements were enshrined in the Communications Act only 18 months ago after full and detailed debate and scrutiny in Parliament.

"The governors believe these arrangements are working well and see no reason to start trying to undo any of them."

The latest proposals are likely to feed into the review of the BBC's Charter, which is due for renewal next year.

One-off payment

Channel 4, which lobbied to receive public money, had "no immediate case" for obtaining public funding according to Ofcom.

But they have suggested there are grounds for the government to consider a one-off payment to Channel 4 to help absorb some of the costs they will pick up with the transition to digital.

The BBC's director general must prepare for charter review

Ofcom's chief executive Stephen Carter said: "Our decisions and recommendations are rooted in the realities of developing the digital television market."

He added that the next five years were crucial in ensuring public service broadcasting from a variety of providers would be of high quality.

Ofcom also confirmed its intention to allow ITV to reduce non-news regional programming by 50%, allowing the broadcaster to cut low-rated religious, children's and documentary programmes to 1.5 hours per week.

However, proposals also stipulated that the commercial network should increase high-quality programming produced in the regions and maintain its commitment to provide regional news and current affairs across the country.