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Government plans see a digital Channel 4 as rival to BBC

Channel 4 is to be transformed into a news-focused rival to the BBC under Government plans to ensure Britain has a variety of local, regional and national news sources in the digital age.

Every home in the UK will also have a right to internet access, as part of Government plans “to secure Britain’s place at the forefront of the global digital economy”.

A report drawn up by Communications Minister Lord Carter, former Chief Executive of cable television company NTL, also warned music, video game and film publishers they must adapt to the growing power of the internet.

It promised a tough line against pirates who distribute copyrighted material, with a new legal duty on internet companies to provide police with the personal details of offenders. But it also said business models must adapt to the way customers were behaving – for example, by ensuring there is a legal and easy way to buy the material.

The proposals were welcomed by Birmingham Chamber of Commerce, which said it was important to ensure every part of the country had access to high speed internet services.

Lord Carter warned that news organisations were struggling to cope with the impact of the internet, as there was more competition to win advertising revenue, advertisers paid less for space online and consumers were less willing to pay for the service they received.

He said: “The wide range of sources of news at national, regional and local level, and particularly a range of sources of widely- available impartial news is not something that we can any longer take for granted.”

He called on the Government to consider relaxing rules which prevent local newspaper businesses consolidating.

But he also called for Channel 4 to expand its news broadcasting role.

Although it would work closely with BBC Worldwide, the channel would have a specific remit to provide an alternative voice to the BBC.

The report said: “At the heart of this new remit should be strong commitments to international and national news, current affairs, documentaries and film with the prospect of introducing programming for older children and news for the nations.”

Other proposals include a guaranteed internet connection for every home with a minimum 2mb speed by 2012, similar to existing guarantees that every home in Britain can receive mail and a telephone line. Internet services would still be paid for, but it would mean remote and rural areas did not miss out.

At the same time, the Government should work with private businesses such as BT and Virgin Media to develop a new national network capable of delivering broadband speeds of 20mb.

The report also proposed the creation of a new body to deal with the problem of people illegally copying and sharing music and films over the internet, funded by a levy on internet service providers (ISPs) and the music and film industry.

John Lamb, of Birmingham Chamber of Commerce, said: “Expanding broadband access to ensure every property is included would be a real benefit to business, not least because it would make it easier for staff to work from home.”

Andy Duncan, chief executive of Channel 4, backed plans for a new role for the station. He said: “The Digital Britain report strongly reinforces the need for a ‘greatly valued’ Channel 4 at the heart of a vital second force in public service broadcasting.”

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