Recent decisions made by the corporation to support alternative news provision, such as BBC Trust's rejection of the executive's local online video plans, have been 'politically astute and welcome,' Lord Carter, who is the Minister for Communications, Technology&Broadcasting, told the Westminster Media Forum event.
Speaking about the government’s Digital Britain project, which will publish its interim report by the end of the month, Carter said the corporation should be 'a cornerstone for the system' of news provision in the UK.
"But there needs to be more than the BBC," he said.
"Alternative, independently-funded news provision is an essential part of a democratic society.
"A fully-funded alternative news provider to the BBC is something that future generations will thank us for helping provide."
While a fully-financed BBC is desirable, the current public service broadcasting (PSB) system is untenable for the future, he added.
The government must come up with a development plan for PSB provision, which protects the many economic and cultural benefits that the service brings the UK, he said.
