SEVEN kilometres of fibre optic cable being laid between Aurora Energy's Cambridge Data Centre and Midway Point marks the start of the roll out of the $43 billion national broadband network, Communications Minister Senator Stephen Conroy said today.

The roll- out of the fibre backbone for the network will initially take place in three areas across of Tasmania.

Work started at Midway Point last week and the phase from George Town to Scottsdale will be under way before Christmas. A third section from Smithton will begin early in the new year.

Tasmania will be the first state connected to the national network, which is expected to dramatically expand communication access to the community.

Aurora is responsible for building the network in Tasmania using its infrastructure to connect domestic and business customers to the high-speed communication network.

"The National Broadband Network will be the largest ever nation-building infrastructure project in Australia's history," Senator Conroy said.

"These exciting first stages in Tasmania are an important marker as we rollout the enabling platform for Australia's future digital economy."

The project is being undertaken by local contractor Nu Energy, national contractor John Holland and international technology provider Marais Lucas.

Senator Conroy confirmed the first high-speed broadband services over the National Broadband Network in Tasmania are expected to be available by July next year.

The Tasmanian section of the project, which is expected to connect 200,000 premises and cost $750 million, is due to be completed by 2014.

Meanwhile the Tasmanian Government is now turning its focus to broadband applications.

At the Launceston General Hospital a pilot project is already trialling the transmission of vital clinical information between the hospital, a patients GP and their community pharmacist, to improve care for a recovering patient once they've left hospital.