Orange has scrapped plans to buy the technology behind the defunct online TV venture Project Kangaroo.

The TV-on-demand venture created by the BBC, ITV and Channel 4 was first announced in November 2007. Billed as a 'one-stop shop' for video content online, the service was expected to offer users more than 10,000 hours of TV, with around 90 percent available for free and the rest available for rent or purchase.

However, Project Kangaroo was scrapped earlier this year after the Competition Commission said it wouldn't benefit viewers. Orange was thought to be one of two companies that had expressed an interest in purchasing the technology from the creators, but the ISP today confirmed it had backed away from the deal.

"After in-depth due diligence, we concluded that it was unlikely that an outcome which benefited France Telecom's Orange operations would be met," Orange said.

Orange had planned to use the technology in its own TV service.