Telecommunications firm, Slingshot, has bought Woosh's 9000 customers.
It says nearly all of Woosh's fixed-line and wireless customers will move over to Slingshot, which will take about three months.
Chief executive of M2 New Zealand, which owns Slingshot, Mark Callander, said the deal was worth $1.3 million, and it is trying to compete hard against the the market leaders, Spark and Vodafone.
"It's part of a new focus on moe aggressively chasing that market share we're after."
Analysts questioned whether Slingshot would be harmed by its settlement with media companies to withdraw its Global Mode service from the beginning of September.
But Mr Callander said it was continuing to attract users.
"We've had solid growth right through his entire period."