Telstra has reconnected half of the 2400 telephone lines at Goodna which were cut by NBN contractors on Tuesday.
All services are expected to be restored by 7 o'clock tonight.
Telstra has been working around the clock to restore telephone and internet services to homes and businesses.
Local councillor Paul Tully said the cable was cut outside the Goodna telephone exchange by NBN contractors who "ignored maps of the Telstra cable network".
"This outage is now into its fourth day and is an indictment of NBN and its cowboy work practices."
Cr Tully called on NBN to negotiate compensation for all Goodna businesses affected by the outage.
"These businesses have been struggling since the 2011flood and this has been a real kick in the guts.
"It's not good enough for NBN to ng leave town with businesses still suffering financially because of NBN's total incompetence," Cr Tully said.
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