Ofcom rejects licence fee plan

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The media watchdog Ofcom has rejected proposals for the BBC to give part of its licence fee to other broadcasters.

Ofcom's report states: "We reject 'top slicing' the BBC's funding for programmes and services."

Instead, the regulator has left the way open for a possible merger between Channel 4 and Five - a move that could safeguard their financial future.

Ofcom's report looked at how TV channels should respond to big changes in the broadcast industry.