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OFT closes file on Sky and ntl agreement

British Sky Broadcasting have announced that, nearly one and a half years after Sky and ntl notified the Office of Fair Trading of a new cable distribution agreement, they have been informed by the OFT that they will not take a decision regarding the agreement and instead is closing their file.
The distribution agreement, which was conditional on OFT approval, would have entitled ntl to substantial discounts on the wholesale rates for Sky's channels in return for a commitment to increase their distribution of the channels.
A Sky spokesman said: “It is disappointing that, through regulatory inertia, commercial progress is being impeded.”
The cable distribution agreement between Sky and ntl was signed on September 2000 6.
Sky and ntl sent notification to the OFT on October 30 2000 for approval under the Competition Act 1998.
No-one from OFT was available for comment.
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