The telecommunications industry is alarmed by the Federal Opposition's desire to shut-down the $43 billion National Broadband Network (NBN) project.

The NBN is the nation's biggest infrastructure project and the Liberals want to axe it as part of their spending cut regimen.

But according to independent telecommunications analyst Paul Budde, the NBN has widespread industry support.

Mr Budde says the project, which promises to deliver internet television, video calls and chatrooms as well as educational and medical applications, will put Australia in the vanguard of global broadband development.

He believes any further delays in rolling out the broadband fibre network will prove a costly decision in the long-term.

"I think you know it's nearly criminal if the Opposition would indeed do that," he said.

"We have spent three years on getting where we are now.

"[The Coalition] is winding the clock back five years - because we have to start all over again with submissions, with all sorts of proposals, discussions and we already know that we are running years behind other countries in relation to broadband affordability and high-speed connectivity."

Next week, the Government will formally launch the broadband network in Tasmania.

Already, small groups of subscribers in suburban Hobart and smaller communities in the state have been trialing the fibre optic links.

One of the retail service providers, iiNet, says its small group of testers have embraced the massive boost in internet speeds from high quality ADSL of 10 to 12 megabits a second to 100 megabits a second.

The provider's chief regulatory officer, Steve Dalby, cites a combination of commercial and social benefits that make the substantial investment in the NBN worthwhile.

Mr Dalby does not play down dissatisfaction with the Coalition's stance on the issue.

"The feedback that we've had from customers is they're indicating to us that it has just exceeded their expectations," he said.

"I think there is a level of concern. We would have a concern that the statements that seem to have been made so far appear to be off the cuff at least and from an Opposition that just wants to oppose rather than to propose an alternative."

'Reckless and risky'

The ABC approached the Liberal's communications spokesman Tony Smith for an interview on its reasons for potentially shutting down the NBN.

He declined to comment but a spokesman re-stated that the broadband plan was a reckless and risky adventure.

He says the Coalition will outline an alternative template for fast, affordable and reliable broadband in coming weeks.

There is speculation it could involve the revival of sections of the Opel project proposed under the Howard government, which employed more wireless and satellite technology.

But Phil Harpur - senior research manager at business consulting firm Frost and Sullivan - rates that plan as a largely cosmetic makeover.

"My initial impressions are that if that type of move were taken, we would not see any real major leap in terms of speed and adoption on a nation-wide basis," he said.

"Although it may improve what we have, however it would not take us up to some of the leading nations."

A company report on the NBN found while the project faces a number of hurdles, it has the potential to contribute significant long-term benefits to the Australian economy.

Another study by McKinsey and Company concluded a 10 per cent rise in broadband household penetration produces a rise of 0.1 to 0.4 increase in GDP growth.

Mr Harpur says investment plans in the information technology and communications sector would have to be significantly revised if the NBN is dismantled.

"It would take a major realignment and readjustment in plans, so it definitely would be a major disruption for the industry," he said.

Labor is obviously aware the NBN and the digital revolution reflects our eagerness to embrace the latest tech offerings, be they from Apple, Hollywood, or Bollywood.

Broadband and Communications Minister Stephen Conroy knows he has got a captive audience.

"The question I get asked first everywhere I go in Australia is can you do my house first? How quickly can you connect my house?" he said.

"Australians are crying out, all across Australia - regional Australia, rural Australia, capital cities - everyone is crying out for affordable high-speed broadband."

But there are still some big unanswered questions about the NBN.

It has yet to reveal its business plan and it may drag out over a decade and even those running the NBN say they have no idea what the cost might ultimately be.