The Aberdeenshire village made famous in the film Local Hero has been removed from a programme of possible 4G phone mast installations.
Pennan - and its iconic red phone box - featured in the 1983 Bill Forsyth film starring Burt Lancaster.
The application for an eight-metre tall mast to provide improved phone coverage was refused by councillors last year.
The Scottish government has now said Pennan has now been removed from the Scottish 4G Infill Programme.
An update said no mobile network operator had committed to using the village.
It added: "At Pennan, the proposed mast was unsuccessful in achieving planning permission from the local planning authority."
Critics had said it would affect the village's charm.
Aberdeenshire councillors voted five to two to refuse the application.
Local Hero saw representatives of a US petro-chemical giant, who were seeking to build a refinery in a coastal village, won over by the gentler rhythms of the local life.