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Telecoms chain Carphone Warehouse has withdrawn its sponsorship of Channel 4 programme Celebrity Big Brother amid allegations of racial abuse directed at housemate Shilpa Shetty.

The firm's sponsorship, which appears as idents appearing at the beginning and end of every segment of the programme, will not appear from tonight onwards.

"Our concern has rapidly mounted about the broadcast behaviour of individuals within the Big Brother house," Carphone Warehouse chief executive Charles Dunstone said.

"We are totally against all forms of racism and bullying and indeed this behaviour is entirely at odds with the brand values of the Carphone Warehouse."

Channel 4 chief executive Andy Duncan told an Oxford press conference that "at the end of the day Carphone Warehouse have to take the right decision for them".

He revealed that Channel 4 had intervened twice following comments by housemates Jade Goody and Danielle Lloyd when "we felt their comments might have been construed to contain racial overtones".

Mr Duncan stood by the programme's broadcasting of scenes showing tensions between Shetty and some of her fellow housemates, saying that "I'm not ashamed that was on Channel 4 – quite the opposite".

"We have to start with the question: why has this caused such a debate? Some of the events in the house have touched a nerve dealing with issues about race and society," he said.

High levels of public concern about the treatment of Shetty on the show have been reflected by the record 33,000 complaints received by media regulator Ofcom thus far. Speaking to the same press conference, Ofcom chief executive Ed Richards said that the watchdog was "monitoring the situation very closely" but insisted that there would be no "kangaroo court".

"We would expect to write to Channel 4 shortly and then we will listen to what Channel 4 have to say.

"In the meantime it's Channel 4's responsibility to respond to what are clearly significant viewer concerns," he said.

Both Tony Blair and Gordon Brown have been drawn into comments regarding alleged racial remarks towards the Bollywood actress by three of her housemates.

Following a heated row with Goody, Shetty told fellow contestant Cleo Rocos that she felt racism was behind her treatment; the first time she has voiced such concerns.

"I'm representing my country. Is that what today's UK is? It's scary. It's quite a shame actually," she said.

After being told by her housemate that she did not think there was anything racist in it, the 31-year-old responded: "It is, I'm telling you."

In what will no doubt push the programme's ratings even further since the controversy began, Goody and Shetty are set to go head to head in the next eviction.

"Big Brother's unique strength is that it is ultimately the public who decide," Mr Duncan said today.

Meanwhile, Hertfordshire police has confirmed that it is investigating two emails sent to Channel 4 which made "unspecified" threats about a number of the housemates.

Labour MP Keith Vaz tabled an early day motion in the House of Commons objecting to the comments made about Shilpa by her other housemates.

He is calling on Channel 4 producers to take "urgent action to remind housemates that racist behaviour is unacceptable".

Housemates Jo O'Meara, Goody and Lloyd have made derogatory comments about Indians' food and how they eat while Jackiey Budden, Goody's mother, could not say the Bollywood actress' name properly and referred to her as "the Indian".

Goody has been dropped as a patron by the charity Action Against Bullying for her actions in the house, while the Perfume Shop chain has suspended her perfume, Shh… from sale immediately.

"This decision will be reviewed once Ms Goody has left the Big Brother house and is in a position to respond to the media in person," a statement from the retailer said.