Every other alternative in terms of actual news and local service that has been looked at to replace the BBC either costs more, doesn't provide access to the whole of the UK, or simply doesn't exist - Doris's comment when someone asked about how they'd do a subscription was telling "97% of the UK has access to SUPER FAST broadband that can carry 7 channels", ignoring that just getting access to that is going to cost more than the licence fee, before any hardware changes needed (I can't think of any halfway reliable ISP that costs just £14 a month).
The only reason the Tories are talking about removing it is because it appeases their nuttier back bench and pulls the news away from their illegal activities for a few days.
Not even the rest of the media market in the UK is in favour of having the BBC go to subscription or advertising, as they know that if that happens it'll kill off half the other broadcasters, and massively weaken most of the survivors as the ad budget won't go up and the BBC will hoover up much of it due to it's audience share.
At the same time it would do away with one of the few UK companies that actively seeks out and promotes new talent into the industry.