Government to Replace TV License Fee

Unlike the current license fee, the public broadcasting fee will be mandatory for all households, regardless of whether or not they own a television. It will come into effect at the beginning of 2012.

"Since this is a taxation-based payment, it will be mandatory," says Communications Minister Suvi Lindén. "The starting point is that the fee will be 175 euros, give or take 10-15 euros. But the next government will make the final decision on the level of the public broadcasting fee."

The idea was to keep the fee small by making more people required to pay.

But YLE Director General Mikael Jungner is disappointed with the decision.

"In practice it requires YLE's 2012 budget to be the same as it was in 2001," he says. "And I'd like to see a single company that could swallow 11 years of inflation and still cover its expenses."

New Supervisory Body, New Money

The government will also establish a new supervisory body to oversee YLE's operations, one that will be more independent from YLE itself.

One of the main problems with the current license fee is that many people refuse to pay and claim they have no television - something that inspectors are unable to verify unless voluntarily granted access into the home. It's hoped the new fee will correct this problem by being mandatory for every household.

The name change also signifies an acknowledgement that public broadcasting encompasses other media, especially the rising popularity of entertainment and news via the Internet.