Damage to a fibre optic cable caused about 210 homes near Deloraine to lose their telephone services and a number of areas to lose mobile service.
The incident occurred on Thursday afternoon.
Telstra Tasmania's regional general manager Michael Patterson said the damaged was caused by third party contractors working on a private property near Prospect.
Eleven mobile towers in the area were also impacted, which caused a loss of 3G and 4G coverage in the areas of Deloraine, Sprent, Mt Claude, Hagley, Railton, Gardens Ridge, Loyetea, South Riana and Sisters Beach.
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"Telstra hopes to have all services restored by early evening tonight and apologises for any inconvenience caused during this time," Mr Patterson said.
"Telstra encourages all contractors about to begin excavation activity to utilise the Dial Before You Dig Service to minimise potential damage to underground infrastructure."
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