The UK communications regulator has declined to intervene in YouView, the joint venture designed to bring IPTV to UK television sets.
Ofcom will not investigate the scheme – formerly referred to as Project Canvas – despite protestations from a number of internet service providers, including Sky and TalkTalk.
Rival firms BT and TalkTalk, which are involved in the YouView project along with a number of broadcasting corporations, will no doubt be delighted with the decision.
The YouView partners are currently developing a set of universal standards for a TV set-top box, and hope to bring the product to market in early 2011.
Critics of the scheme, including subscription TV providers Virgin Media and Sky, claim that the development will create a market monopoly for the project partners.
However, Ofcom said the initiative was likely to "bring benefits to viewers and consumers".
"At the present time, there is little evidence that YouView's partners are likely to withhold content as a result of their involvement in the project," the regulator said.