Some 5,000 South Australian residential and business customers are being transferred to Adam Internet after the decision by Kern Internet on 26 July to cease trading.
The transfer of its customers will be effective 1 August, with Adam Internet honouring all existing contracts.
Customers are being assured by their new ISP that the transition will be 'seamless', and that they will not notice any significant changes in service levels.
Adam Internet has supplied the infrastructure and 70 per cent of the bandwidth for Kern Internet since 2001.
"There will be no loss of e-mail and access either," Adam Internet managing director Scott Hick said. "Our gear is co-located".
Hick says the competitiveness of today's changing market is applying significant pressure to many smaller ISP's. Two years ago, customers typically used 10-20 per cent of their monthly quota.
"Now we are seeing people use their entire quota for the month, if not more," he said.
He believes Kern had to close its doors due to the rising bandwidth usage by its customers. "They are using things that only the technologically proficient used [a few years ago], such as viewing YouTube videos".
The ISP's customers have been given 21 days notice, which was sent by e-mail. "A second notice will be sent via regular snail mail soon," Hick said.
"Kern has been honourable, and treated its customers as a first priority. Everyone is paid and happy".
All plans are being honoured for an indefinite time frame. If a Kern Internet customer wants to change to a new plan, they will have to select an equivalent Adam Internet plan. However, current Kern contracts can be renewed.
There will be no cancellation fee during the 21 day period before the transfer over to Adam Internet.