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BBC should 'think again' on funding

2 August 2010 Last updated at 10:39 BST

The television licence fee is "obsolete and unfair" and should be replaced with a voluntary subscription service for certain programming, a report has suggested.

The growing use of the internet for viewing has made licensing TV sets outdated, according to right-wing think tank the Adam Smith Institute.

Report author David Graham, a former BBC producer, said the corporation should "think again" about the way it was funded "sooner rather than later".