TenTel which was a low cost broadband provider established in 2013 has gone into administration, affecting over 10,000 customers.
All customers registered with the provider have had their contracts moved over to Talk Talk who have bought the assets of the firm.
The administrators FRP Advisory said the company - had been unable to secure the funding needed to keep it going.
Comparison website BroadbandGenie said: "It's particularly unfortunate when ISPs such as TenTel close down. The broadband industry is dominated by big corporations so the smaller players try to carve out their own niche with unique services.
"In TenTel's case, it was one of the few providers to offer short term broadband contracts rather than the 12, 18 or 24 month agreements found with almost every other ISP.
"It added some much needed diversity in the market, and consumers shopping for broadband today have a little less choice."
TenTel’s support team is still answering calls, so any customers with concerns should get in touch with its customer services line on 0333 011 2321 , or its online chat service.
Administrators FRP said the company will operate as normal until the end of June to ensure a smooth transition.
The joint administrators have also started a 30-day consultation period with all 54 staff.
A statement read: "The joint administrators will maintain the company’s offices until the end of June to ensure a smooth transition of services. Our biggest priority is making sure that this has no impact on your existing services."