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"It was especially damaging because the licence fee is based on a public belief that the BBC offers a degree of integrity and impartiality which its commercial competitors cannot achieve."

For the benefit of any Americans unfamiliar with the license fee, UK residents (and several other countries, as well) have to pay an annual license fee for anything in their home that can receive TV broadcasts (each TV, computer TV tuner card, etc.) in order to support the BBC.

@ Doug,

Thanks for making that point. In Germany, citizens who own televisions and/or radios have to pay a monthly fee (which is essentially a tax) to subsidize public television and radio.

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