Sky/NTL Deal Shelved By OFT

The OFT has decided to close the file on a cable distribution agreement between BSkyB and ntl without making a decision. The deal would have entitled ntl to receive discounts on wholesale rates for Sky’s channels, in return for a commitment to increase distribution of the channels.

A spokesman for Sky said: “It is disappointing that, through regulatory inertia, commercial progress is being impeded.”

The deal between Sky and ntl was signed in September 2000 (see BSkyB And NTL Strike Channel Supply Deal), but was dependent on OFT approval under the Competition Act 1998. The OFT was notified of the proposed deal in October 2000.

BSkyB: 020 7705 3000 www.sky.com NTL: 01252 402 000 www.ntl.co.uk OFT: 020 7211 8000 www.oft.gov.uk

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