Experts advising the Conservatives have suggested that the BBC licence fee should be scrapped in order for the corporation to fulfil its potential. The Broadcasting Policy Group, headed by ex-BSkyB and Channel Five executive David Elstein, recommends that the BBC should be run like Channel 4 and start subscriptions for some digital television channels.
The BBC's charter comes up for renewal in 2006.
What do you think? Should the licence fee be scrapped? What would you like to see replace it?
This debate is now closed. Read a selection of your comments below.
The following comments reflect the balance of opinion we have received so far:
The BBC has got a bad case of conflicting priorities and needs to make its mind up. BBC1 appears to be chasing ratings as assiduously as ITV, and dumbing down its content as fast as it can, but all the time having the privilege of being funded by the licence fee. It needs to return to its former glories of public broadcasting, not chasing the 'yoof' and yob culture. If it behaves just like ITV, it should compete with it for advertising and lose the licence fee. Channel 4 shows that decent serious programmes can be made on an advertising revenue budget, so the 'serious' element need not be lost if it does go down the predominantly populist route.
John, London UK
 | If the licence fee is dropped, BBC quality would drop like a stone  |
Most of the TV in Canada is awful, especially CBC. BBC is great quality compared to Canadian TV. If the licence fee is dropped, BBC quality would drop like a stone. If you have ever watched north American TV, then you'd soon agree the UK needs the BBC for quality programming, and the BBC needs the licence fee. Additionally, perhaps the BBC website would be dropped also which would be a great shame. These people who call for the suspension of the TV licence fee really do not have a clue.
Stewart, Toronto, Canada
I say scrap it. All the other station/channels manage to survive through advertising, why can't the BBC?
Chris, Wirral
What do you get for your �116 licence fee? Off the top of my head. Non-digital viewers/listeners: two national tv networks; 5 national radio networks (plus networks for Scotland, Wales and N Ireland); local radio the length and breadth of the nation; regional television news and current affairs; BBC Online. Digital viewers/listeners: All the above plus an additional 6 tv stations; interactive television; and 4 national radio stations. There may be more. All without commercials.
The alternative? Subscription television with very little original programming; mainly bought-in American shows which we get to see on the commercial terrestrial channels at some point; and time-shifted channels making up the numbers. All costing the earth (and more if you want sport and movies) - and still with commercials. Let's be honest. If satellite and cable disappeared tomorrow not many people would be that bothered. The BBC plus the three terrestrial commercial channels are all the majority of people want and need.
Brian Hart, Leeds, UK
All you need to do is look at the state of television on continental Europe (e.g. TF1 in France and the Rai stations in Italy) to see that the licence fee is a good idea.
Chris, Manchester
Oh. So an executive of Channel 5 wants to tell us how our BBC should be run? Name one quality piece of homegrown output from Channel 5 off the top of your head, now try it with, say, BBC in just one genre - sitcoms for example. When any other television model is shown to produce as much quality as the BBC, let's change it. Do you really think the government, any government, will let us keep that �100 odd quid a year in our pocket? It will disappear here, or there, or somewhere - paying for something else. Does no-one remember what happened to the railways, the phone companies - anything that the corporate world took over promising better service?
Colin Ravey, Stone, Staffordshire
Absolutely not! I love the BBC. The BBC is our last defence against the remorseless advance of commercial interests into every facet of our lives. It is far, far too important to let go for the sake of a small amount of money.
James, London, UK
The BBC has lost its way - it no longer concentrates on providing the quality of programming not available elsewhere but instead seems obsessed with out-doing commercial channels in populist offerings. I should like to see a much reduced BBC - perhaps a single channel - return to its public service roots; the quasi-commercial remainder could then be hived off to become as fully commercial as it seems to wish. The licence fee for the slimmed-down service could then be reduced to a much lower level.
Michael Richardson, Oxford UK
The name "licence fee" is misleading. What it actually is, is best described as; extortion backed up by the force of the law and imprisonment of people who wish to own a television but do not wish to pay for, or indeed watch either its pro-socialist/pro EU propaganda news and documentaries, or its vacuous lifestyle shows and fly on the wall visual Valium. It also, I believe, censors criticism of itself in order to protect the multi billion pound gravy train extortion racket.
R.Jones, UK
The BBC licence fee should remain! I could not stand to have yet more TV channels constantly disrupted with adverts.
Warren Smith, Peterborough, UK
Having now spent time abroad in Asia I realise two things about the BBC. It is unrivalled in the world for the service it provides. It is excellent value for money - 30p/day; ironically the same price as a tabloid!
James Gillespie, Kuala Lumpur, Malaysia
No do not remove the licence fee. The BBC is a haven of quality and professional broadcasting. You may not like everything it produces - but it has the freedom to produce and develop ideas without the financial imperative of a subscription based company. Nation will speak unto nation is the motto, and the likes of BSkyB, et al say nothing to me.
Matthew J Pereira, London, UK
 | A licence fee can only be justified if the BBC offers something which commercial providers cannot or will no  |
A licence fee can only be justified if the BBC offers something which commercial providers cannot or will not. This seems to be the case less and less. I listen to Radio 3 or 4 all day and sometimes find something on BBC 2 I want to watch. So I will be happy to pay a subscription to those plus the World Service and forget about the rest.
Bernard, Bath, UK
Standards on the BBC have slipped, but nowhere near as much as the commercial channels. If the licence fee buys freedom from endless stupid adverts and more cheap American TV programmes or mindless 'reality' shows, then I am all for retention.
Charles, Bolton UK
This is so poor - listen to what foreigners say about the BBC (well, all but the Zimbabweans anyway!) and then look at the position in the world that the BBC holds and then look at the amount of money it costs and you still want to get rid of the only media company in the world with independence, principles, quality and global coverage? If so, I think you are watching too much crass (i)tv and maybe need to read a few books or actually watch BBC programmes!
Anon, UK
Why should I pay a fee for having a TV in my house? Nowhere else in the world has this and not all of their channels have adverts. Besides, how much does it cost to supply detector vans and their staff? The BBC wastes a great deal of money, the chairman is on a fat salary and I resent paying the licence fee, besides, I pay for Sky and don't watch the BBC
Ann Morris, Penwood UK
No, never. The BBC should perhaps re-examine its purpose and stop trying to match independent companies in their dumbing down, but it's vital that its independence be maintained. Cut out tabloid trash game and reality shows and get back to quality programming, even if it means reducing output.
John, UK
The BBC is a global benchmark so the highest standard of journalism and other television projects. It deserves public funding.
Ian, Wirral, UK
Anyone in favour of abolishing the TV licence fee has clearly not had to endure protracted exposure to US television. If the licence goes, the BBC will follow shortly thereafter and we will be left with nothing but tabloid TV.
Chris Klein, Chandlers Ford UK Without the licence fee, would this website even exist? The BBC is world-class and needs to be kept that way.
John Bailey, Cambridge
I have been receiving demands for a license fee for over 4 years despite repeatedly informing the authority that I do not have a TV at my address in Wales. It would be interesting to see how much of the fee is actually benefiting programmes and how much is wasted in sheer bureaucracy. Scrap it.
Wayne Parfitt, Houston, USA
The licence fee should not be scrapped, but it should only be used for BBC 1 and 2. The other BBC channels should be subscription only. I say this because at present I am paying a licence fee for BBC channels I am not able to view. There is no cable or free view available in the area I live. Also I can not put a dish up as I rent. Why should we pay for BBC channels the BBC fail to provide every one with.
Jen, Hants
 | Is there enough advertising money around to support BBC, ITV and Channels 4 & 5, I doubt it.  |
Definitely not, without the licence fee income, the BBC would have to take advertising which ruins the enjoyment when watching programs. Also without the licence fee we would not have the marvellous range of Radio channels that we currently have. In my opinion the radio channels alone justify the licence fee. Anyway is there enough advertising money around to support BBC, ITV and Channels 4 & 5, I doubt it.
Martyn Hill, Northampton Is it any co-incidence Mr. Elstein worked for Sky? There is nothing that Murdoch would like better.
Hussey, Dijon, France
I'm surprised at David Elstein's comments, if the BBC went commercial, it would seriously damage ITV, Channel 4, Channel 5 and advertising revenues. I expect that t/he impact would be really quite serious for those channels relying on advertising revenue which begs the question of why Mr Elstein would make such a comment?
Martin, Reading UK
I'd happily pay a subscription fee for a channel or two without ad breaks that had a great reference website and a few radio stations!
Daniel, Southampton, England.
Scrap the licence fee - it is a pointless and unfair tax!
Mark Wadsworth, London E11
I think BBC is a truly British Commodity and if it ever become commercial, BBC will loose its value thought the world and become another Channel 5. We should be proud to have BBC. Keep up the good work.
Ketan Sonecha, Leicester
As long as the BBC remains advert free I don't care about the fee. I'm quite happy to pay it, but if I had to pay the BBC through a subscription I would also do that.
Peter Jackson, Portsmouth, UK
Why are repeats seen as a negative aspect of the BBC. I'd rather see a repeat of a good quality programme, especially the classics from the 1970s and 1980s, than an original of some of the new material that seems to slip through the good taste censors.
Steve Paterson, Edinburgh, Scotland
Those advocating the scrapping of the licence fee should spend a few months living in the US. While PBS does a fine job with the resources it has, it really cannot compete with the major channels, all of which are commercial. What makes the BBC stand out from the crowd is its non-commercial nature and the quality of (most of) its programming. Many of my colleagues here in the US are big fans of the Beeb and they only see the watered-down commercial version available on BBC America.
Nigel Pond, Brit living in the USA
As TV has effectively become a necessity rather than a luxury the licence fee represents a flat-rate tax which is patently unfair on lower earners. It should be funded from income tax instead.
Dave, Sunderland, UK
Great value for money compared to other TV services. But the BBC must learn to survive on the current licence fee level. It does waste money on huge salaries for what are perceived as top stars. Develop new talent, it's cheaper and far more interesting to see new faces rather than the old ones raking in huge salaries week after week.
Peter, UK
The licence fee may have its problems, but it should remain in place (perhaps with a much reduced fee introduced for those who only have radios) until something better can be proposed. The Elstein proposals do not constitute anything like an appropriate alternative in my view.
Robert Crosby, Nottingham, UK
It is undeniable that the present system of TV licensing is outdated. It was introduced when the BBC was the only broadcaster on television, but since the introduction of digital technology and independent television stations it seems only fair that the fee should be axed.
Heather Scott, Folkestone, UK
The impartiality of the BBC is respected throughout the world. No wonder it is under threat! Other supposed news channels, even in the UK where they are supposed to be impartial, have entire programmes hosted by pundits who spout the political viewpoint of the channel's owner, without any attempt at balancing content.
Roddy McLachlan, Edinburgh
I really wouldn't mind if the BBC now started a season of shameless self-promotion. The fact is, for around �10 a month we are given access to the world's best broadcaster, financing a large number of commercial-free TV and radio stations (including the World Service), not to mention one of the most visited web sites in the UK. The BBC consistently remains at the front of broadcasting technology, and in programme-making.
Craig, Southampton, UK
Do NOT scrap the licence fee! Look at the content on this website alone as an indicator of the quality of the BBC. There are so many things for the British to be proud of, let's not lose the BBC as one of them.
Linzi, UK
You pay the licence fee BECAUSE you have a TV. It's a licence for the receiver and applies to any reception unit. The fact the majority of it funds the BBC is a very fortunate side effect!
Jeremy Hunt, Leeds, UK
 | It is nothing more than a draconian tax we are forced to pay  |
Scrap it! It is nothing more than a draconian tax we are forced to pay even if we never watch any of the BBC channels. The technology exists for those who want it to pay a subscription. We should not be forced to pay for something I don't even want.
Chris Parr, Bradford Once the BBC started to provide digital services that were not available to licence fee payers without extra investment the licence fee should have been scrapped at that point.
Derek, England
It seems that most people have got the wrong end of the stick. The proposal was not to end the BBC's independence, but to free it from political control. The BBC's core operations could still be paid by public subsidy (without the costly process of collecting TV licence money), while their more commercial activities (digital broadcasts, co-productions, etc) could generate more money so the BBC can compete properly with Sky where it is appropriate. No state institution can possibly provide everything that the commercial sector does - this way the BBC is free to concentrate on its strengths. Makes sense to me.
RS, Bath, UK
The BBC ain't broke! Political meddlers should stop trying to fix it.
Paul B, Oxford, UK
The BBC licence fee should be scrapped when most people now are paying monthly subscription fees which include all the other BBC channels.
Debbie Richards, Walsall
No, the independence of the BBC depends on public money. We need this at the moment more than ever. Commercial pressures mean dumbing down. Resist them.
Helen Miller, Birimingham
NO! The BBC provides great programmes with no advertising. It would be a real shame to scrap the licence fee.
Emily Jefferson, Tayport, Fife
I'm very happy with the BBC, especially the fact that there are no annoying advert breaks in the middle of shows.
Pete, Doncaster, UK
I think you should be able to choose whether you want to watch the BBC or not and not be told you have to pay a fee and not have a choice in the matter. What happened to choice? This is just dictatorship!
Gemma, England Even though the BBC can (all too rarely these days) be a breath of fresh air, it really is time that this 'TV tax' was abolished.
D. Jones, UK
The licence fee should continue as it is. It would be truly dreadful if the BBC became a commercial station. Without doubt the quality of programmes would be compromised. People want the opportunity to watch TV uninterrupted by ad breaks.
J. Edroff, Herts
I don't think the BBC should have an exclusive right to demand licence fees from everyone with a TV. It is an unfair competitive advantage or imposed monopoly.
Anthony, Letchworth
Yes, the licence fee is outdated and uncalled for. There are other ways that the BBC can find to fund their spending and they will have more flexibility with it!
Stephen, Northampton, Northamptonshire
Absolutely. I don't see why people should have to pay for a TV licence and then pay for Sky as well. It's not as if I even watch that much television anyway - I only have one for watching DVD's and videos.
Brian D, Scotland
I am a UK citizen who is temporarily working in the US. It was not until I moved here 3 months ago that I full appreciated the joy of an impartial, non-political BBC not in the pay of large companies with products to sell. I urge anyone who thinks scrapping the BBC to go online and listen to American radio. I will be happy to pay the licence fee when I return - it is more than good value!
William Gosling, Palm Bay, Florida, USA The licence fee is a small price to pay, and if we lose it, standards overall will drop to the levels seen in other countries. The loss of quality, commercial free, radio such as BBC7 and R4 is my biggest fear, which would otherwise not exist.
Stuart, Southampton
The BBC has gone too far from its core values which I understood was TV for 'the masses', for example in digital TV where only a small proportion of potential viewers can watch it (on a personal level it appears as if my home town will never get it) that alternative ways of funding must be looked at. There is now constant advertising on the BBC (again for digital TV) that this must be a logical way forward.
David Hill, Todmorden, England
I believe that the licence fee allows the BBC to provide the best broadcasting service in the world. The licence fee should be retained.
Tom, East Kilbride, Glasgow
No way should the licence fee be scrapped. The BBC is the only place of refuge from the constant barrage of mundane advertising that is blighting TV. It is where I turn to every time an ad break comes on.
Richard, Billericay, UK
I think the system is fine the way it is. Without subscriptions the programmes are available to people who might not otherwise have watched. And being non-commercial, programmes don't need to cater to the lowest common denominator. Whatever happens I just hope the BBC remains advert-free!
Alex, London, UK
The licence fee should be scrapped, quickly followed by the BBC itself.
Michael Rowson, Swindon, England
No, No, No! The licence fee is the only thing that keeps the BBC free from the constraints of commercialism and audience pandering. I am more than happy to pay the current licence.
Paolo Attivissimo, York
I think the BBC is remarkable value for money for �10 a month. A commercial company would have to charge many times that figure, and would it still be interested in the World Service output? I think not.
Ed Hudson, London
 | The time has come to cut the BBC down to size  |
The licence fee is a regressive tax. It provides the BBC with far too much money that is used to pay excessive fees to performers, supports an over-inflated sense of importance that encourages the corporation to behave like a political party, and funds all sorts of questionable investments far removed from its core role. The time has come to cut the BBC down to size.
Michael, Norwich I would rather carry on paying the fee just to be free of advertising and sponsorship; this is the main reason I do not have cable/satellite TV.
Kevin Ruane, Cheltenham
Yes, it should be scrapped. I used to be an ardent supporter of the BBC with its principles of public service broadcasting (i.e. broadcasting that is in the public interest rather then run for profit). However, for quite a while I have found the standard of programming in serious decline with most of it is just as banal and worthless as the commercial channels' output.
Paul Becconsall, Peterborough
Certainly not. The BBC supported by the licence fee is a great national treasure which we would all do well to defend.
John Grant, Cambridge
If the BBC was producing innovative programmes which justified the fee I would have no objections to it. However we have endless format quiz shows, DIY programmes, celeb nonsense. Where are the documentaries and dramas on which the Beeb made its name?
Jonathan Rose, Southend, Essex
The number of repeats on the BBC these days make a nonsense of having to pay a license fee.
Bob Heyhoe, Macclesfield
No it shouldn't be scrapped, it works, so why fix it? The BBC can be independent of almost everybody (apart from this government) because of its licence fee. I trust it more than any other source of information for this reason.
Graham, Cambridge
Even if the licence fee was scrapped I'd gladly pay the equivalent for a BBC 'subscription' if it meant having access to some of the best programming, news and online content available, all advert-free.
Huw Davies, Wales, UK
I think it should be scrapped. It is nothing but a tax on people so they can watch television. Those of us with cable/satellite pay a fortune for the privilege of television anyway. Don't we pay enough tax in this country?
Natalie, UK
If this means that we get adverts for tampons and washing powder then the answer is a bit fat NO! The licence fee is quite small compared to the services you get in return.
Paul, England
Seems like another move to get everyone onto pay-to-view and a conveyor of escalating prices. The BBC is the main barrier to stop this and should be left as it is
Marko
There's actually something we Brits can be proud of and what do we do - change it. Excellent. Let's hope the Conservatives don't take this advice seriously.
Jonathan Kelk, Dalry, Scotland The fee shouldn't be scrapped, but anybody not paying it should NOT be able to watch any of the BBC stations, including the digital ones. I realise this looks like advocating making BBC stations subscription channels, but I prefer to look at it as making viewing BBC programmes a privilege, rather than charging for them.
Dave Swindell, Andover, Hants
NO - definitely not. It's the last bastion of sensible TV left. Once you have to start pandering to the consumer you end up with a pile of rubbish - just like they do in the US - hundreds of stations and barely a decent programme between them.
Ivan Petrovsky, UK
The licence fee should have been scrapped years ago. The BBC's love of repeats has shown that even with the funding, they are unable to create enough new programmes to justify the cost of the licence. It's time they were made to sink and swim using commercials and subscriptions to fund their future, just like everyone else.
Lee Jennings, Suffolk, UK
Adverts are a pain but it's not fair to charge full licence fee if you don't own a digi box as your money is going into other channels you can't see
David Brayshaw, Manchester
Definitely keep the licence fee! Compared with the commercially funded services available elsewhere that are more interested in advertising than useful criticism the BBC stands as a shining example of how a broadcaster should operate.
Phil Tate, Manchester
With lottery money being spent on increasingly bizarre projects surely some would be better spent funding the BBC?
Bill, UK
Have you ever seen anything comparable to The Blue Planet produced by a commercial station? Almost certainly not. If advertisers and sponsors are allowed to influence BBC programming, expect never to see its like again. An excellent proposition for anyone who can't get enough reality TV or phone-in voting.
Thomas Evans, London, UK
I resent having to pay for the BBC just because I own a TV. I rarely watch any BBC channels because there is never anything I want to watch. I also think the fines imposed for failing to pay are a bit excessive. There are more serious offences that incur lower fines.
Gavin, Cardiff, Wales