DELAYS over the installation of the NBN on one of Australia's most remote islands has left its residents virtually cut off from the rest of the world - digitally that is.

The company that provided mobile and broadband services, the Christmas Island Internet Administration, switched off access to the web for almost 1000 locals and small businesses at 12am on March 1.

The CIIA claims it was forced to close because it couldn't compete with the "heavily subsidised" NBN, which was estimated to take a around one year to roll out.

Garth Miller from CIIA told PerthNow despite attempts to resolve the situation the CIIA had no option but to shut down.

He said the CIIA was not able to compete against the NBN and was "hundreds of thousands in debts and liabilities".

Initially, the company lodged a complaint with the Australian Competition and Consumer Commission in a bid to halt the NBN roll out. But that bid failed.

Mr Miller said if the CIIA continued to trade (provide services) while insolvent it would be breaking the law.

"We have asked the Commonwealth to find somebody to run an interim service while NBN build the network but so far we have had no response," he told PerthNow.

"We are not 'blackmailing' or asking for money to keep running it, just that they find somebody to take over and fund them. We can no longer absorb the losses that running an interim service on behalf of the NBN entails."

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Mr Miller said CIIA was cancelling its US$94,000 a month satellite contract and would move a handful of users to its emergency backup dish however that had very limited capacity.

"We have 615 fixed wireless users and 400 4G users, all have gone offline except five that we had contracts with that we need to honour until we can trigger an early termination clause.

"NBN Sky Muster had about 70 installs on Christmas Island. They can do two to three a day. It will take them months to do 700-900."

Last night, discussions between the Commonwealth and the local administration continued but as of Wednesday morning those who were signed up to CIIA no longer had internet access. Landline services, Telstra's 2G mobile service and emergency radio services were not affected by the switch off.

Christmas Island administrator Barry Hasse said vital services such as the medical centre, the detention centre, Australian Border Force and federal police buildings had been fitted with the NBN.

But he conceded the rest of the island, mostly individuals and small businesses, would have to wait until the roll out was complete which could still take months.

"They (NBN) have committed to investigate the situation," Mr Hasse said.

When pressed when the NBN roll out would be complete, Mr Hasse said he had an "aspiration" that it would be completed in two months.

PerthNow understands five technicians are currently installing dishes on the island but there are plans for another five to be sent within the next few days.

"There are also ongoing negotiations to take over the services provided by CIIA, negotiations for an ongoing interim service," Mr Hasse added.

Christmas Island shire president Gordon Thompson said while he appreciated the complexities of the situation, it was of little comfort to those locals who are without internet and 4G services.

He blamed the NBN's drawn-out installation process for the situation the island now found itself in.

"The shire is not too happy about it," he said. "This is basically affecting home users and small businesses. All the Commonwealth services and the mine are OK as well as those services who were signed up to a different contractor.

"We put time after time the argument that it’s better to install all the dishes, if we must have them, which we don’t particularly want," he said.

“But if we must have them, put them all in place and switch everyone over at the same time, that would be the organised well planned way to do things.

“But they ignored any plea to do that and now we have a terrible mess.”

A spokeswoman from NBN said the it had been working closely with the Department of Infrastructure and Regional Development to prioritise essential services on Christmas Island since becoming aware of the threat that local internet services would be withdrawn by the operator less than a week ago.

She said services for locations such as the port, airport, emergency operations centre, water corporation and pharmacy were installed over the weekend and that it would continue to work with the Department to roll out the NBN network on the island as quickly as possible.

So far, 65 satellites had been installed since the expressions of interest process began last year

"It should be noted that getting equipment to the island and finding installation partners is a very large logistical exercise," the spokeswoman added.

A Department of Infrastructure and Regional Development spokesman said the department was aware the local internet and mobile broadband provider on Christmas Island, Christmas Island Internet Administration (CiiA), had ceased providing internet services on 1 March 2017.

He said in a bid to prevent the loss of services to those that would be affected the department offered financial support to CiiA to remain operating but that CiiA refused this support.

He said the Department and NBN Co Limited were actively working with agencies on the island to install NBN Sky Muster services as soon as possible.