A 35-metre high mobile base station at Musselroe Bay has been switched on.
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The tower, funded through the federal government's Mobile Black Spot Program, will deliver 3G and 4G coverage.
Telstra regional general manager for Tasmania Michael Patterson said the company delivered phone service to 98.7 per cent of Tasmanians.
"Regional areas are relying on mobile connectivity more than ever before, and national demand for mobile data has grown by approximately 40 per cent on Telstra's mobile network in the past 12 months," he said.
"We know the importance of high-speed mobile internet for supporting local businesses and tourism."
Musselroe Bay is on the far North-East Coast of the state and has 40 residents. It is close to Musselroe Wind Farm, and camping spot Mt William National Park.
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