Ms Tessa Jowell, the UK's Culture Secretary, held up plans by the BBC to launch a new digital youth TV channel, BBC3, by asking for more consultation.
Speaking to broadcasting executives at the Westminster Media Forum in London, Ms Jowell announced a decision on BBC3 will be taken when further work is done on the market impact of a new channel.
"I am concerned about saying 'Yes' to a bid that is too competitive, especially as many commercial companies are currently feeling the squeeze from the biggest fall in advertising revenues for a decade," said Ms Jowell.
"I want any new BBC service to complement, not undermine, the market," she added.
In an unprecedented move, Mr Jowell has asked the BBC and the Independent Television Commission to "reconcile" their different views of the competitive impact BBC3 would have on commercial TV channels.
The BBC claims BBC3 will take £4 million sterling away from the annual revenues of its commercial TV rivals, while the ITC is insisting it will cost £25 million.
Ms Jowell also said the review of BBC News 24 will go ahead and will be led by Mr Richard Lambert, former editor of the Financial Times, who will report to the Secretary of State by the end of June 2002.
The draft Communications Bill, due to be published in the Spring, will contain proposals to ensure the BBC is more heavily regulated than any other broadcaster, with a new hierarchy of obligations for public service broadcasters, said Ms Jowell.
AFP