Some probable knock-on effects of abolishing the licence fee:
1: The rapid closure of many wholly independent channels. The available advertising revenue has (through the introduction of web & social media advertising) fallen by over 90% in real terms in recent years. ITV has struggled to survive and would almost certainly close down if the BBC took away some of its advertising revenue, as would many other independent channels (both on terrestrial TV and via satellite).
2:The loss of channels already providing advertising revenue to the BBC (as they're co-owned by it), such as Dave, Drama, Yesterday, Gold, Watch, Really, Alibi and Eden, through their own loss of revenue.
3: The loss of most content from the world's biggest and most informative website (excluding 'user-contributed' sites, such as TripAdvisor).
4: The loss of some of the world's best orchestras.
5: The loss of many activities designed to development musicianship, such as BBC Young Musician of the Year and the Radio 2 Young Folk Award.
6. The loss of the BBC Proms.
7: Most importantly, the loss of BBC Radio 1, 1 Xtra, Radio 2, Radio 3, Radio 4, Radio 4 Extra, 5 Live, 5 Live Sports Extra, 6 Music, BBC Asian Service, BBC World Service, Radio Scotland, Radio Nan Gaidheal, Radio Ulster, Radio Foyle, Radio Wales, Radio Berkshire, Radio Bristol, Radio Cambridgeshire, Radio Cornwall, BBC Coventry & Warwickshire, Radio Cumbria, Radio Derby, Radio Devon, BBC Essex, Radio Gloucestershire, Radio Guernsey, BBC Hereford & Worcester, Radio Humberside, Radio Jersey, Radio Kent, Radio Lancashire, Radio Leeds, Radio Leicester, Radio Lincolnshire, BBC London 94.9, Radio Manchester, Radio Merseyside, BBC Newcastle, Radio Norfolk, Radio Northampton, Radio Nottingham, Radio Oxford, Radio Sheffield, Radio Shropshire, Radio Solent, BBC Somerset, Radio Stoke, Radio Suffolk, BBC Surrey, BBC Sussex, BBC Tees, Three Counties Radio, BBC Wiltshire, BBC WM 95.6 and Radio York.
The licence fee pays for a great deal more than just BBC TV channels. I've not even watched any TV for the past few months (since my aerial fell down) but I'm still happy to pay the licence fee just to fund BBC Radio, which is the best in the world!