Damage this week to Telstra's undersea cable resulted in a 50 per cent loss of capacity, according to a Senate committee report.
Telstra said the damage was caused by a sea anchor or some other sea trauma and the telco is expects a full report today.
Despite the loss of capacity Telstra reported minimal delays to Internet services and said it will maintain 'stable and adequate bandwidth'.
"Currently customers will be experiencing some delays but the Internet is still operating; the delays are in accessing information from Europe and North America," Telstra reported.
Damage is expected to be repaired by next week.