It is cheaper if your TV is black and white. You also get a reduced price if you are legally blind, although I am not sure how much of a discount you get.
Overall, I think the TV license is brilliant considering it provides us with an ad-free TV and news network.
Plus, you only actually need a license if you watch TV "as it is aired." I.E. DVDs, recordings etc. don't require a license. It's less of a TV license, more of a live TV license.
It always struck me as odd however that watching streamed live foreign TV on your computer counts under that however, and you need a TV license for that, to help fund the BBC.
