The Phone Co-op has taken over Namesco's home broadband business, acquiring 2,400 residential and business customers in the process.
Namesco's broadband subscribers will be transferred across to the independent consumer co-operative, unless they choose to switch to a different provider.
According to The Phone Co-op, customers will now be able to access "better broadband deals more competitively priced".
The provider claims they will have access to a wider range of services and packages to cover their communications needs, including landline calls and mobile.
Vivian Woodell, Chief Executive of The Phone Co-op, said he is "delighted" to welcome the new customers to the co-operative's home broadband service.
"We are confident that our customer-focused approach, which stems from the fact that The Phone Co-op belongs to its customers, will appeal to the people who are moving to us," she stated.
"All our customers have the opportunity to become members of The Phone Co-op, to co-own the business and share in the profits, and we hope that as many as possible of these new customers will choose to do so."
Woodell said The Phone Co-op offers a range of services in addition to broadband, including fixed-line and mobile telephone services plus business connectivity.
Stephen Ewart, Commercial Director of Namesco, said his organisation had decided to focus on its core product ranges, which include web hosting, domain names, email and website building tools.
"This move to The Phone Co-op will be beneficial as customers will now be with a specialist provider offering improved products and a wider range of phone and broadband services," he stated.
Ewart claimed that Namesco "couldn't have found a better home for its customers".