Fujitsu is reported to have pulled out of the Broadband Delivery UK tender process.
The Financial Times claims that the Japanese technology and networking firm will launch no further bids for rural broadband infrastructure projects.
Fujitsu was one of only two approved bidders to be named for the £530 million rollout of high-speed broadband in the UK countryside.
However, only BT has won contracts to date - with many critics pointing to a lack of genuine competition for the broadband provider.
A Fujitsu UK spokesperson was reported as saying the firm "remains supportive" of the BDUK tender process.
However, the representative said the company would not be pursuing opportunities within it - clearing the way for BT to carry out rural broadband infrastructure work nationwide.
Last year, Fujitsu announced ambitious plans to construct a 1Gb fibre broadband network in the UK, capable of delivering ultra-fast services to five million households.
However, it remains to be seen whether these plans will come to fruition without central government funding.