What Happens If Your Internet Provider Goes Out of Business?

In today’s connected world, having reliable internet is essential for work, entertainment, and daily life. But with more than 100 NBN providers competing across Australia, it’s natural to wonder: What happens if your internet provider shuts down? While it's not common, smaller ISPs (Internet Service Providers) can close due to financial pressure, market changes, or merger activity. The good news? You won’t be left without internet for long—even if your provider disappears overnight.

How Common Is It for Internet Providers to Shut Down?

Australia’s NBN market is highly competitive, with dozens of providers offering various plans, bundles, and price points. While this competition often results in better value for consumers, it can also strain smaller providers—especially those without strong infrastructure, a loyal customer base, or a larger parent company.

We’ve seen examples of this in recent years, such as the closure or sale of smaller ISPs that couldn’t keep up with wholesale costs or customer acquisition targets. Still, widespread shutdowns remain rare, and most transitions happen with minimal disruption to customers.

Will I Lose My Internet Connection?

Not usually. If your internet provider shuts down, you typically won’t lose access immediately—but you will need to act fast. Here's what usually happens:

• Your provider may notify you of their closure and advise when your service will end.
• In some cases, your provider may be acquired by another company, and your service may continue under the new brand.
• If your provider ceases operations without a buyer, your internet service may be disconnected within days or weeks.

Unlike the electricity market, there’s no formal “retailer of last resort” system for internet in Australia. That means you’ll need to choose a new provider and reconnect your NBN service yourself.

What Should I Do If My Provider Goes Out of Business?

If your internet provider is shutting down, follow these steps:

• Check for communication – Look for emails or letters from your provider about the closure, timeline, and your next steps.
• Compare NBN plans – Use a comparison tool to find a new provider and plan that fits your needs.
• Switch quickly – Avoid potential service disruptions by signing up with a new provider before your existing one disconnects your service.
• Return your modem – If your modem was rented or provided under contract, check whether it needs to be returned.

Do I Still Have to Pay My Bill?

You’ll still be responsible for paying any outstanding charges for the services you’ve used, even if your provider is shutting down. If the provider goes into administration, you may receive a final invoice from the administrator handling the business closure.

Make sure to review your final bill carefully and contact your bank to cancel any ongoing direct debits once your service is terminated. 

Will I Need a New NBN Connection?

Not necessarily. Most new providers can activate your NBN service remotely using the same technology type (e.g. FTTP, FTTN, HFC). In rare cases, a technician visit may be required, especially if your current connection was under a unique configuration.

To avoid delays, have the following information handy when signing up with a new provider:

• Your NBN technology type
• Your physical address
• The name of your old provider

Can I Trust Smaller NBN Providers?

Many small-to-medium NBN providers in Australia offer competitive prices, local customer service, and flexible plans without lock-in contracts. In fact, some outperform the big names when it comes to customer satisfaction and network performance.

However, smaller providers may face more financial pressure and are less likely to absorb cost increases from NBN Co without raising prices or reducing service levels.

That said, size doesn’t always mean stability, and many small providers are owned by larger telco groups behind the scenes.

Should I Switch to a Bigger Provider to Be Safe?

It depends on what matters most to you—price, performance, or peace of mind. If your current provider offers good value and consistent speeds, there's usually no need to switch unless they raise prices or show signs of trouble.

But if you're concerned about stability, moving to a well-known provider with a larger customer base may offer more reassurance. 

What’s the Best Way to Protect Myself?

The best defense is being proactive. Here's how to minimize your risk:

• Stay informed – Monitor emails and service updates from your provider.
• Avoid long-term lock-ins – Choose month-to-month contracts where possible.
• Compare internet plans regularly – Prices and promotions change often.
• Know your options – Have a shortlist of backup providers in case you need to switch quickly.

If your provider has closed or you're thinking of switching, Selectra can help you find the best deal quickly—without the hassle.

By Savannah Walker

Energy & Telecom SEO Specialist

Savannah Walker is Selectra’s SEO Project Manager and Editor, leading the team that focuses on energy, telecommunications and consumer technology, across news, reviews and how-tos.