The proposed installation of a 5G mast in a residential area has been rejected on the grounds of it being "visually intrusive".
CK Hutchison Networks (UK) Limited, better known as Three, had applied to Breckland Council for the construction of a 15 metre-high structure in South Green.
If approved, the mast would have been located near the junction with Russet Way, alongside a street pole and equipment cabinets.
However, those living nearby said it would be an "eyesore" and called for alternative sites to be considered.
Dereham Town Council also objected, labelling the proposal "obtrusive".
And now, Breckland Council's planning department has thrown out the application, stating that the project would be "detrimental to the character and appearance of the street scene and visual amenity of residents" - contrary to the Breckland Local Plan adopted in 2019.
Three has pledged to work with the council to "find a way forwards".
Officials also raised concerns relating to the protection of trees in the area and the mast's impact on road safety.
The decision notice read: "Insufficient information has been submitted to determine the impact of the proposed telecommunications mast and associated equipment on the mature trees in the locality, which are the subject of a Tree Preservation Order.
"Insufficient information has been submitted to determine whether the proposed telecommunications mast and associated equipment would adversely impact highway safety".
Three said previously that it tried to keep sites "as unobtrusive as possible".
District councillor Harry Clarke, who revealed in September that a number of locals had contacted him about the plans, added: "This decision will be welcomed by residents. I'm sure they will be relieved and it's one anxiety less [for them].
"I hope a more suitable location can be found to secure the improvements this will bring."
Three has the right to appeal Breckland's decision.
Its spokesman added: "5G rollout is vital for residents and business of Dereham. We want to offer the local area a great network experience and our planners determined that this new site was required to deliver it.
"We will work with the council to find a way forwards."
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