BSkyB joins NTL in attack on regulatory delay

BSkyB and the cable group NTL criticised the Office of Fair Trading yesterday for taking so long to make a regulatory decision on an deal between the two that the agreement was no longer worth pursuing.

In October 2000 Sky and NTL announced a deal that would have given NTL discounts on Sky's sports, news and entertainment channels in return for making the stations available to more of its cable TV subscribers.

But now the OFT has decided not to take a decision on the case and is closing its file. The OFT said this was because neither side had shown interest in pursuing the agreement. Both NTL and Sky hit out at the OFT saying this was only because the regulator had taken so long.

Stephen Carter, NTL's managing director, said: "It has taken the OFT 16 months to come to the decision that it is not going to make a decision. The world has moved on since October 2000, and the agreement that was made then is no longer commercially viable for either party." Sky said: "It is disappointing that, through regulatory inertia, commercial progress is being impeded."

The OFT is continuing its wider investigation into BSkyB's alleged abuse of its market position in premium pay-TV sports and film channels.