But they warned the mobile phone operators that any attempt to find another site near Balcombe School will incur their wrath again.
Mum Nancy Towers said: "We know we have got to have these masts but not in built-up areas and next to children's schools.
"It's fantastic that Orange has withdrawn this application but if they try to site another mast within 500m of the school or any residents we will oppose them."
About 135 children attend Balcombe School in classrooms overlooking the London to Brighton railway line. Orange applied to put a 12 metre high mast beside the line, 150 metres from the school's boundary and 250 metres from the buildings.
On Monday it unexpectedly said it was withdrawing the application because of a "land ownership issue" but would be looking for another site in the "general vicinity".
Mrs Towers, who collected signatures of 250 angry parents and residents, claimed children would be guinea pigs for the new technology. She highlighted evidence showing ill health in people living within 400 metres of masts.
Balcombe Parish Council also opposed the mast, which adds to more than 10 already thought to be in the Balcombe area.
Orange insists the "radio frequency" technology used by its masts as well as phone handsets, is safe and similar to that used in others ways in the environment including in televisions.
Orange spokesperson Rebecca D'Arcy said Orange's existing masts in Balcombe did not cover the railway tunnel that the latest mast would serve due to tree density. The school was above the railway and unlikely to be affected.
"We have to appreciate that in order to use mobile phone services there