Smith, who was replaced by Tessa Jowell as culture secretary after the general election, held the post during the BBC's controversial decision to move its Nine o'Clock News programme to 10pm, to the chagrin of rivals and commercial TV regulator the ITC.
Smith described the backstop powers that the culture secretary has over the corporation as being similar to a nuclear button, "and the point of having a nuclear button is that it is never used", he said.
He added that he would not be surprised if changes were made to the communications bill that would see the BBC brought further under the remit of Ofcom.
Smith also promoted a third way of regulating the industry, which would entail joint authority held by Ofcom and the competition authority. However, he said he is in favour of light-touch regulation, which allows broadcasters to make their own decisions.
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