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The Reading-based group, which previously traded as Tele2 UK Ltd and provides a number of fixed wireless broadband services directly and through UK dealers, is understood to be in liquidation under the supervision of accountants McCann Taylor.
A spokeswoman for Leeds-based broadband provider FirstNet UK said it supplied network services for Liberty and was currently working with the liquidators to provide a point of contact and service continuity for customers of the troubled company.
"We were asked by the liquidators to look after the network and serve Liberty's customers," she said. The spokeswoman was unable to say whether FirstNet was seeking to take over Liberty's customers on a more permanent basis or make a formal offer to McCann Taylor.
Simon Jackson, marketing manager at rival Star Internet, believed Liberty had run into problems because of current industry pricing trends.
"Everyone went down the pricing road and forgot about service," he said.
Manny Pinon, sales and marketing director at distributor Norwood Adam, referred to Liberty's market as "mucky minutes" and said he was "amazed" so many companies were still involved.
"There are such aggressive rates available from the tier one carriers that unless [providers] are adding value they will not be able to survive," he said.
Liberty Broadband was unavailable for comment.