The Daily Telegraph claims today that the Digital Britain report, out on Tuesday, is likely to recommend that some of the BBC's annual revenue from the licence fee should be used to fund regional news services on ITV and broadband for all.
It would mean the BBC losing its monopoly over the licence fee.
ITV has said it can no longer afford to provide regional news, as it is obliged to do under its broadcasting licence.
According to the Telegraph, the Government and media regulator Ofcom are keen that there is an alternative regional news provider to the BBC to ensure plurality of news for audiences.
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