Rhodri Williams, of Ofcom in Wales, on what the report means for the Welsh media.
Media regulator Ofcom has warned that the UK government must ensure BBC Wales TV news faces competition as ITV spending on its news service falls.
One option Ofcom suggests is for an arms-length commission to help fund non-BBC TV news programmes after 2011.
The regulator confirmed ITV can cut its Welsh programming to just over five hours a week in the meantime, as analogue transmitters are switched off.
The Welsh Assembly Government said it reflected many of its recommendations.
Broadcasting is not devolved and Welsh Heritage Minister Alun Ffred Jones said he would be discussing the details and money needed with UK ministers.
With ITV facing intensifying competition for viewers as all television becomes digital, it has raised the possibility of surrendering its current licence and all of its public service commitments if it regards the costs involved as too onerous.
A broadcasting advisory group appointed by Mr Jones warned last October of the danger of Wales becoming a "passive consumer of programmes rather than have its own voice".
It is gratifying that both the government and Ofcom have grasped the urgency of the need for change
ITV spokesman
Ofcom responds to such concerns in its final report on the future of public service broadcasting.
The report states: "Maintaining competition in news coverage is a priority in Wales, especially given its scarcity of news in print and other media."
The documents agrees that the BBC's offer to share facilities with ITV to reduce the company's newsgathering costs in the UK nations and regions "represents an important development".
But it warns: "Ofcom will consider whether this raises editorial or competition issues and how these partnerships will ensure real choice in the long-term provision of news in Wales.
"Given these risks and uncertainties, Ofcom also believes that to sustain English-language news provision in Wales, the UK government should plan now for a new model, based on independently funded consortium of news providers and commercial broadcasters."
An ITV spokesman said it was "gratifying that both the government and Ofcom have grasped the urgency of the need for change".
"Ofcom has concluded that ITV regional news is unsustainable in its current form after 2010 and we will now be studying the detail of their progressive proposals for the delivery of a sustainable regional news service from 2011."
The report also reveals that the Welsh language broadcaster S4C suggested in its submission to Ofcom's review the possibility that an outside company could provide both its news programmes and an English-language television news service, likely to be on ITV.
There are fears the news coverage in Wales could become a BBC monopoly
S4C's news is currently provided by BBC Wales.
The channel said the submission was not a reflection on the present service, but that it was "timely" to consider its news provision.
A BBC Wales spokesman said: "We welcome Ofcom's recognition that audiences in Wales should be able to view news and non-news programming from a range of providers.
"We will look at the detail of the report carefully over the coming weeks.
"We also look forward to hearing the UK government's own thinking in this area shortly."
Mr Jones said he was pleased that "Ofcom recommends that new funding should be introduced to maintain news in the regions and devolved nations".
"The Welsh Assembly Government hopes to raise this with UK government ministers over the coming weeks and we will be discussing the detail and financial resources needed with the UK government," he added.
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