Culture Secretary Tessa Jowell gave conditional approval on Thursday to controversial new state-funded BBC digital TV and radio services. However, plans to create a BBC3 channel were rejected and BBC News 24 faces a feasibility study.
Three new TV stations and five new radio stations were given the green light, but the public broadcaster has been told to rethink its plans for BBC3, a proposed replacement for BBC Choice.
Jowell also announced an independent review of BBC News 24, which will have to convince experts that it is living up to its pre-launch promises.
BBC Digital has been given the go ahead for new channels for children aged under six and aged six to 13, and for BBC4, an arts and discussion channel that will replace BBC Knowledge.
However, the new services have been slammed by commercial rivals for replicating what they already provide, but at licence payers' expense. The same argument has been made by online publishers mindful of the BBC's growing commercial operations on the web.
Three of the five new radio stations will target the youth market, sports lovers and the Asian community. Other plans include extending the BBC's World Service to the whole of the UK and an archive music station.
"I have given the BBC a chance to create high quality, home grown programmes which educate, inform and entertain. The new stations must fulfil its public service remit and offer value for money for licence fee payers," said Jowell.
"The BBC still has not made the case for BBC3, the station for 16 to 34 year olds. It was not clear that its proposals were truly distinctive in an already crowded market, so I have asked the Corporation to rethink its plans in this area," she added.
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