Vodafone is to shut down its pager business after the competition watchdog refused to approve its sale to Capita.
The telecoms giant said it was "disappointed" with the Competition and Markets Authority's decision, will no longer pursue a sale, and will close the unit down.
No jobs will be affected, but 1,000 customers will have to find another provider. A Vodafone spokesman said: "We are disappointed with the decision by the CMA to continue its investigation into the transfer of Vodafone's paging customers to Capita's PageOne business.
"This seems to be a surprising decision considering that this market has been contracting for some time and no other country in Europe has more than one wide-area paging network. Due to the expense involved with a prolonged investigation, Vodafone will not pursue the transaction and has made the decision to close down this business."