TenTel has slipped into administration after failing to secure the funding needed to take it to the next stage of development.
All customer contracts have been acquired by TalkTalk, which means TenTel subscribers will not see any disruption to their services.
However, TenTel is no longer taking on new customers and is set to close in the next few weeks.
Tom MacLennan, joint administrator at FRP Advisory, commented: "The acquisition of the customer contracts by TalkTalk will ensure customers continue to receive their broadband and telecoms services without any disruption.
"The business will close at the end of the month and we will be consulting with staff on the options and support available to them.”
TenTel customers' contracts will continue as normal under TalkTalk without any changes or price increases.
People who have set up a direct debit with the provider have had their payment details transferred to TalkTalk, while those who pay their bill by logging into MyTenTel can continue doing so via the usual URL.
Customers have also been assured they can keep their current phone number and still have the option of switching to a new provider, as long as they pay the early termination fees outlined in their TenTel contract.
For more information on what this means for TenTel customers, click here.