Vodafone will no longer be selling its pager business to Capita and instead will shut it down. This comes after the competition watchdog threatened to investigate the deal.
Vodafone and Capita run the UK’s last two paging businesses. They both agreed to the sale back in February.
The Competitions and Markets Authority said it was concerned that customers may now face price rises.
Vodafone said it was ‘disappointed’ by the CMAs decision and that it made more economic sense to close the business.
A spokesman for Vodafone said: “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, which is based on ageing, standalone technology no longer supported by network vendors.”