ITV, C4 and Five could merge

ITV could merge with Channel 4 and Five to create a broadcaster large enough to rival the BBC, under new proposals.

Britain's biggest commercial TV company has suggested the plans to communications minister Lord Carter as one of a "number of radical ideas" after a huge downturn in advertising revenues. ITV is expected to reveal a 20 per cent fall in revenues when it announces figures to the City next Wednesday.

If the plans are approved it would create a new TV company controlling more than 60 per cent of the British television advertising market.

It would also allow for hundreds of millions of pounds to be saved through amalgamating the three companies and cutting jobs.