Australian telecommunications provider, Telstra said the bushfires have caused substantial damage to its telephone exchange and base station infrastructure, as well as to cabling.
Sol Trujillo, CEO of Telstra said thousands of phone lines and broadband internet connections are down.
Although the full extent of the damage would not be known until access to the fire-affected areas is opened up.
"Telstra's technical teams are working as quickly as possible to repair network assets and to restore connections and services," he said.
"Our support staff is on the ground across all the fire-affected areas, including in the Emergency Relief Centres, to help get people connected.
"We are also bringing in more staff from across the country to restore our services and help our customers wherever we can."
The telco has announced the details of its Disaster Relief Package, which includes free call diversions, mobile calls charged at fixed line rates and free reconnections.
Trujillo said the telco will also make a cash contribution of $500,000 to the Victorian Bushfire Appeal, as well as matching dollar for dollar personal contributions made by Telstra employees up to $250,000.
"Assuming that Telstra staff contributes at least $250,000, this will take the total contribution to $1 million from Telstra and our people," he said.
"This contribution is on top of the Telstra Disaster Relief Package, the provision of on-the-ground in-kind support and equipment in affected communities and the major network and service repair work that is underway.
Telstra has many staff working and living in the affected areas, Trujillo said.
"Our thoughts today are with these staff, particularly those who have lost friends and loved ones or whose homes have been lost or damaged," he said.
"As a company, we are united in our support for these staff and will do everything we can to assist them through this very difficult period, including providing access to counseling.
"We also have many staff fighting bushfires and providing voluntary support in their local communities. We commend them for their courage and commitment in the most difficult of circumstances."