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The government yesterday announced a series of amendments to its communications bill in response to recommendations by Lord Puttnam's scrutiny committee earlier this year.

Among the changes is the decision that Ofcom will have powers to fine the public service broadcaster over content issues. The rest of the BBC is regulated by its board of governors.

ISBA director general Malcolm Earnshaw said that although ISBA broadly welcomes the new amendments to the bill, on the regulation of the BBC "we fear a fudge".

"While we welcome the government's plans to allow Ofcom to fine the BBC over content standards, we believe this does not go far enough and that Ofcom should be given clear and unequivocal powers to regulate the BBC in respect both of competition law and public service obligations," he said.

Another area of concern for ISBA is that the bill fails to recognise the importance of advertisers in the communications industry.

Earnshaw said: "ISBA would like to see clearer recognition by government of the important role advertisers play in UK media, the economy and society, and continues to call for Ofcom to be given a clear 'general duty' to respect advertiser interests."

However, there were a number of amendments to the bill that ISBA applauded, following yesterday's announcement.

Earnshaw, said: "In particular, advertisers are delighted by the green light the government is giving for the industry to work with Ofcom to develop a system for accredited self-regulation of broadcast advertising."

ISBA will be working with the Advertising Association to develop clear proposals which it will put to Ofcom, once it is up and running.

Advertisers are also pleased that the government is pressing ahead with plans to allow non-EU countries to buy into terrestrial TV because "given sufficient content controls will lead to increased investment in the UK commercial media".

ISBA reiterated its strongly held view that although it welcomes the further consolidation of ITV, it strongly opposes any move that would result in a monopoly of airtime sales.

On the subject of radio, it said it would like the bill to include legislation that would allow a minimum of three commercial radio owners plus the BBC in any regional area.

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