The trade body suggests the licence fee is the "least worst" option in the short term, but has asked the DCMS to consider reviewing the funding mechanism as soon as the implications of the digital switchover become apparent at the end of this decade.
A review halfway through a renewed BBC charter would be unprecedented, but the IPA believes that the development of new distribution platforms makes it imperative. Among its proposals for the future funding of the BBC is to make some services pay-per-view or subscription-funded or to introduce an element of advertising.
Elsewhere, the IPA is sceptical that the BBC's proposed corporate governance body, the BBC Trust, will be sufficiently independent. While welcoming the abolition of the board of governors, the IPA echoes concerns that it is a reconstitution of the old system under a new name.
The IPA also wants assurances that the BBC will be penalised if it strays from its public-service programming requirements.