By Torin Douglas Media correspondent

The culture secretary's comments, signalling that the BBC will continue to be funded by the licence fee for the next 15 years, surprised many in the industry and in politics.

The BBC's Royal Charter still has four years to run, till the summer of 2006, and the review of its funding is two years away.

Generally ministers like to keep the BBC on its toes for as long as possible, partly as a lever in case of political controversy.

They are also sensitive because its rivals feel it has been getting its own way for too long.

Commercial TV, radio and online companies object to its above-inflation licence fee increases - at a time when their advertising revenue is in the doldrums.

And they are upset that with Ofcom, the new single regulator for communications, the BBC will continue to be regulated by its board of governors.

'Trusted institution'

Despite this, in her Financial Times interview, Ms Jowell ruled out privatisation and endorsed the current method of funding, saying the prospect of the UK without a licence fee-funded BBC was "anywhere between improbable and impossible".

Ms Jowell ruled out privatisation

She said the BBC was one of the most loved and trusted UK institutions and she was particularly proud of its role in the Jubilee celebrations.

Her comments prompted mixed reactions.

The Conservative culture spokesman Tim Yeo criticised the minister for pre-empting debate on the issue.

Speaking on Radio 4, he said the licence fee was effectively a TV tax and it was a great pity the minister seemed to be closing off discussion of alternative funding methods.

He pointed out that digital technology made possible new ways of paying, such as subscription or payment for individual programmes.

'Pavlovian hostility'

But Lord McNally, the Liberal Democrat spokesman in the Lords, welcomed her comments, saying the nation benefited from having a properly-funded and high quality public service broadcaster.

He accused the Conservatives of responding with "Pavlovian hostility" whenever a minister was mildly supportive of the BBC, and said the corporation helped to underpin our democratic, cultural and national values.

It must continue to enjoy the resources and independence the licence fee provided.

The BBC, not surprisingly, was also pleased: "We welcome the Secretary of State's continuing support for the licence fee, which we believe is the best way to fund the BBC".

Rejections

Its executives were particularly appreciative because the statements follow a series of less supportive public comments from Ms Jowell.

They are still smarting from her rejection of their proposals for BBC Three, a digital TV channel aimed at young adults, and the subsequent delay in approval for the revised application.

The minister also hit the headlines when it emerged she was considering whether the BBC should be fined if it broke programme guidelines, as commercial broadcasters can be.

Her latest comments are seen as redressing the balance.

With several years before a final decision, and several ministerial reshuffles in between, Ms Jowell's comments are not the final word on the future funding of the BBC - but they set the parameters for debate more narrowly than many expected.