The Communications Minister says the TV licence system faces a "number of challenges".
The Dáil heard the findings of a report into the future funding of public service broadcasting last night.
Recommendations include replacing the TV licence with a broadcasting fee that everyone pays - with calls for the increased revenue to be shared with local and regional radio stations.
Minister Denis Naughten says 15 per cent of people currently are not paying their TV licence, which is a huge problem.
"The current unacceptable levels of evasion being the most obvious," said Minister Naughten.
"The high level of evasion represents an annual loss of approximately €40 million to public service broadcasting.
"So effectively, everyone who pays their tv licence pays €39 to cover the cost of those who won't pay."