BBC chairman Sir Christopher Bland welcomed the move, saying it struck the right balance.
"The secretaries of state have managed the difficult task of steering a course between the interests and rights of audiences and the commercial needs of a modern and expanding industry.
"The BBC's independence remains intact. The white paper recognises the role of the BBC board of governors as trustees of the public interest.
"The governors will maintain their existing responsibilities for content on all BBC services and retain sole responsibility for delivering the BBC's public service remit in the modern media age."
And BBC director general Greg Dyke said the white paper has to "prepare the industry for the 21st Century".
"This provides the other important element - independent regulation for the BBC, clarity for audiences and a continued emphasis on the importance of public service broadcasting," he added.
The Independent Television Commission backed the main thrusts of the plans.
Its chairman Sir Robin Biggam said: "Public service broadcasting and standards are quite rightly high on the white paper agenda.
"We will continue to advocate simpler, but not
softer regulation, the involvement of the viewer and the maintenance of public
service broadcasting as a leading contributor to the democracy and culture of the nation."
The ITC and Oftel are already in "detailed conversation" and plan to start work immediately on the move towards the creation of Ofcom.
They said in a joint statement: "We have already had constructive discussions on how to regulate in a digital environment.
"This process can now be developed and extended."
And the ITC, Broadcasting Standards Commission and the Radio Authority have already discussed working more closely together.
The Radio Authority gave the white paper a warm response.
Its chairman, Richard Hooper, said the plans were "a radical vision", offering flexible regulation while protecting consumer interests.
The Broadcasting Standards Commission also welcomed the paper.
'No commitment'
It said it was delighted its arguments for a regulatory regime reflecting citizen and consumer interests had been taken on board.
A BSkyB spokesman echoed the support, saying: "We welcome the government's stated aim to simplify, rationalise and take a lighter touch approach to regulation."
But the Royal National Institute for the Blind was not happy with the plans.
It said it was "very disappointed" that they did not include measures to protect the interests of the disabled.
The RNIB acknowledged that the white paper said the government will continue to make efforts to raise awareness of the needs of disabled people in relation to the media.
But it "makes no commitment to legislation", said RNIB spokesman Joe Korner.
"We feel this is totally inadequate," he said.
"The new technologies are text-based and difficult to operate if you have impaired vision."