Telstra outage costs south-west 'millions'

The Victorian Government says a Telstra outage in the state's south-west has been a multi-million-dollar disaster for the region.

A fire at Telstra's telephone exchange in Warrnambool cut services to 60,000 landlines and mobile phones for several days last month.

The Federal Government will hold an inquiry.

Minister for Regional Cities Denis Napthine says there are still some homes and businesses without working landlines.

"It's put businesses at risk, put jobs at risk and cost the local community, literally millions upon millions of dollars," he said.

"It's been devastating to retail, devastating to our tourism and accommodation industries, this has been a disaster of significant proportions." Mr Baillieu says the Federal Government needs to make sure it does not happen again.

"That inquiry ought to stretch to the social and economic impacts as well, not just to what happened and how do we prevent it in the future, but to understand the consequences," he said.

"If this had been a flood, or if this had been a fire, then there would have been all the assessments and the surveys of the damages done and there would have been an appropriate response from the Federal Government."

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