LineOne has abandoned its unmetered internet service.
Chief executive Andy Harwood sent an e-mail to users saying it could not cope with the demand.
Current subscribers will be able to choose between switching to a pay-as-you-go service or a resold BT Surftime system.
LineOne is still in talks with BT and its spokeswoman could not guarantee the Surftime service would be offered at the current unmetered price.
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