The BBC is an excellent organisation and well deserving of public money. It gives great value at a fraction of the cost of rubbishy satellite nonsense. 
The licence fee is a minimal sum considering the services offered, from the web to radio and television.
The BBC offers educational and quality broadcasting in a dumb age. C4 has little these days and ITV is pure nonsense - Melvyn Bragg (he with the haircut) is overrated and, lets face it, the South Bank Show ain't exactly good anymore!
C5, well, enough said. And as for Sky!!!!! Pure trash.
Giving the licence fee out to other broadcasters as Melvyn Bragg suggests would seriously damage the range of services which the BBC offer. If it had to take advertising it would eventually go the way of C4, C5 and ITV - offering pure balls most of the time.
If it must change, make it for the better!