">Brackens Hotel pub, in Alvaston, early yesterday morning.

But a Vodafone spokesman last night said work was started after Derby City Council "did not issue us with valid notification" of the application being rejected.

"Therefore under planning law we automatically receive planning consent for the development," he said.

Residents in and around the area had fiercely opposed the plans for what would be a fourth phone mast within an 800-yard vicinity.

Masts of 15 metres and above need planning permission.

Almost 300 people signed a petition urging Derby City Council to refuse permission on the grounds that the mast would be an "unacceptable impact" on visual amenities.

And they were overjoyed when the authority ruled in their favour in October and allegedly told the phone giants to find somewhere else to erect the mast.

So when digging started on Brackens Green, Gary Marshall, landlord of the Brackens Hotel pub, went out and told the workmen to stop.

But the workmen insisted they had been advised by their bosses that planning permission was in place and that they had been sent to dig the hole for the mast.

Mr Marshall then phoned Boulton councillor Ranjit Banwait, who had led the campaign against the mast.

Mr Banwait, who was in Birmingham, said he had been furious and managed to stop the work from continuing after contacting O2 and telling the company it was breaching planning regulations.

Speaking afterwards to the Derby Telegraph, Mr Banwait said: "It's disgraceful. It sickens me that these utility companies believe they have the power and money to put up masts wherever the want.

"It's sheer blatant arrogance."

Mr Banwait said he was alarmed the O2 executive told him that he had been under the impression planning permission was in place.

He said: "There's been a comedy of errors and I will be asking for an investigation into how this happened."

Mr Banwait added he had suspicions the hole was about to be dug, but that he had been assured otherwise.

He said: "A few weeks ago I had concerns as the hole was being marked out. I rang the council and asked if the planning decision had been overturned, but I was assured the refusal still stood and that the companies were looking at other locations to put it."

A Vodafone spokesman said: "We wrote to Derby City Council in mid-January, confirming that it is our belief that we had planning consent for the site, and that we would be commencing the build shortly but we did not receive a response from them.

"Accordingly, we started the build of the site today but when our team was challenged by residents we decided to suspend the build because health and safety issues had arisen."

Mr Marshall said: "Thankfully we managed to get the work stopped and they've filled the hole in."

No-one from the council was last night available for comment.