Fujitsu UK, one of two bidders in the Cumbria rural broadband tender process, has withdrawn from the running.
The Japanese technology giant was competing against BT to win the contract to rollout super-fast broadband in the county.
However, Cumbria County Council rejected the opening bids from both infrastructure providers, asking them to return with a more attractive offer.
Duncan Tait, Chief Executive of Fujitsu, told the Financial Times that his company would not be further pursuing this opportunity.
"We withdrew from Cumbria because we cannot currently see a clear path towards a mass market that is required to attract leading retail service providers," he stated.
"We continue to monitor the marketplace and see where we can get this to make sense."
Mr Tait said the firm would look at each case on its own merits "and see if there is a way to make it work and get to the scale we need for our anchor tenants".
The government has distributed £530 million to local authorities across the UK for the rollout of high-speed broadband in rural areas.