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Sky has announced the launch of its new broadband service, Picnic, will be delayed until further notice.

The provider was forced to take the decision after Ofcom had still not given the product its seal of approval.

Sky Broadband's Picnic was planned to combine broadband, phone and freeview in one package.

Setanta and Top-up TV had both filed complaints with Ofcom relating to the service, but a response has not yet been given by the regulator.

Sky said in a statement: "The Picnic team have done everything they can to prepare for launch and there's nothing left to be achieved until Ofcom makes its mind up."

The news means that free-to-air channels Sky Sports News, Sky Three and Sky News will continue to be viewed by digibox owners until the Picnic project is taken off the shelf.

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