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BT has hinted it may launch an appeal following a decision from industry regulator Ofcom to scrap its rule requiring Sky to offer its flagship sports channels to rivals at a reduced price.

Ofcom cited the strong level of competition from BT and others as the main justification for its decision, which has been heralded as a major boost for Sky.

Despite remaining the dominant player in the pay TV market, Sky has already seen BT snatch away a chunk of its Premier League coverage as well as sealing exclusive rights for screening UEFA Champions League football.

While analyst have so far dismissed the possibility of imminent price hikes, BT has already voiced its disappointment at the decision.

A company spokesman labelled the move “very disappointing” and adding the provider would "consider our legal options", although it did rule out the potential of pulling Sky Sports 1 and 2 from its line-up of channels.

“Ofcom has said it is important for pay-TV retailers to have access to key Sky content to be able to compete effectively in this market, and that they want consumers to have access to these channels," he added.

"We therefore expect Sky to behave appropriately so that we can continue to offer our customers access.

“We still believe that effective remedies are essential to address the failure of competition in the Pay TV market, in which we estimate Sky has had around 75pc share of retail subscription revenues for more than ten years.”

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