Mr Mounter said changing the BBC's funding "will be a highly dangerous step".
"Before taking such a decision policy-makers should study the experience of New Zealand carefully.
"Some think the change has worked well, I think it is a flawed system."
Herald media commentator John Drinnan said TVNZ, in Mr Mounter's day, provided educational programmes and sports, and catered for minority audiences.
"Mounter sums up the view of many TV programme makers that the set-up he created had some benefits, but in the end it becomes television to suit advertisers and not viewers," Drinnan said.
"It has taken a while to run down, and it is gradual. Nowadays the Government gets TV companies to make shows that deliver bigger audiences.
"It is why Sky TV has grown so big in this country."