More Tasmanian-based technology businesses and jobs could be spin-offs from the proposed Marinus Link electricity cable across Bass Strait.
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Running a new fibre-optic communication cable along with the electricity cable is being investigated.
TasNetworks says the potential benefits of the extra fibre-optic cable are likely to bring the state significantly increased internet capacity.
State Energy Minister Guy Barnett said: "The Marinus interconnector will not only unlock significant investment in Tasmania that will benefit the economy and create thousands of jobs, but the second undersea cable will provide an opportunity for increased telecommunications capacity, improving the quality of online services for our state."
"A second Bass Strait interconnector will be a win-win for Tasmanian households and businesses."
In the initial feasibility report for Marinus Link released in February, TasNetworks said: "Marinus Link could also bring about revenues by providing fibre-optic broadband services to telecommunications service providers."
It said the potential economic benefits had not yet been investigated.
On Friday, a TasNetworks spokesperson said: "The potential benefits have been investigated further and are likely to deliver significantly increased capacity via additional optical fibre across Bass Strait."
"There will be quite a bit more information provided in our upcoming business case assessment report due for release in December 2019".
ICT industry peak body TasICT said the introduction of another Bass Strait interconnector and data capacity would be positive.
"Internet service providers will have additional delivery and redundancy options, providing a more robust service for businesses and households," chief executive Steve Adermann said.
"TasICT welcomes any upgrade and improvement of technical infrastructure in Tasmania and, although the links across Bass Strait are important, the distribution network within Tasmania must not be forgotten.
"The topography of the state is a challenge for communications infrastructure, as are the remote and less populated areas.
"An increase in competition is good, and the project has the potential to attract more technology enterprises to the state, which could result in more employment opportunities."
NBN spokesman Russell Kelly said: "NBN Co currently does not directly utilise the fibre-optic cables across Bass Strait, but our retailers certainly do."
"As a general principle, NBN Co encourages competition within the telecommunications industry.
Telstra has two fibre-optic cables across Bass Strait.
Other internet service providers use the fibre-optic component of the Basslink electricity cable.
There are conflicting views on whether likely extra competition from the new fibre-optic cable could drive down internet prices for Tasmanian households and businesses.
