Libya is becoming the next Egypt, and the Internet in Libya keeps coming off after every few days. However, this time, it is a total shutdown for quite sometime now. You can check this page, which shows access to Google services across the globe. Clearly, Google services are all inaccessible in Libya and they have seen no activity for long hours.
As this graph is a significant marker of the web-traffic Libya generates, we can quite well understand that the Internet in Libya has been pulled down and has been done in style. Egypt used the crude method of disconnecting the servers and use them as choke-points. Libya on the other hand, has servers which are still connected to the Internet, but are not allowing any outgoing connection.
After the Egypt incident, the Internet is being seen as a medium of mass civic unrest and agitation. Thus, when anything goes wrong, the first thing many countries are planning to do is take down the Internet. This does not come as a surprise after earlier happenings where,
Previously, Internet traffic volumes had been operating at 60-80% of normal as the Libyan government reportedly blocked social media and popular video sites after the start of the popular uprising on February 18th.
The Libyan Firewall was ineffective in shutting rebels from using social media a few days ago. this was a desperate move by the Libyan government and it is not welcome. You can follow up with a discussion on this topic at Hacker News.