Free access to the Australian Christian Channel will end this month, after the regulator ACMA pulled the plug on the six-year trial of datacasting in Sydney.
Competition from internet-based services is the likely reason the Government no longer believes broadcasters will pay for datacast licences in the future.
"As there is no likelihood of an auction of long-term licences for datacasting in the near future, the ACMA has decided the rationale for continuing a trial of such services no longer exists," ACMA chairman Chris Chapman said.
Bishop Robert Forsyth, chairman of Anglican Media, said he was "disappointed" by the decision.
"Among the audience for the Christian Channel are many who cannot afford pay TV and now will lose access to the service. I hope the minister… can find a way to extend the trial indefinitely."