Thousands of Telstra customers in Sydney's CBD have lost fixed, wireless and mobile network services after a contractor ripped through cabling at 9:30pm last night (September 15).

Telstra spokesperson, Craig Middleton, said 10 copper and fibre optic cables were cut at the intersection of York St and Erskine St, one of Sydney’s busiest thoroughfares.

“There was another utility conducting digging works here and it appears they weren’t aware that 400mm below the surface in solid concrete we had major copper distribution cables and optical fibre,” Middleton said. “They’ve gone through the ducting and through the cables – some have been cut and gotten jackhammer marks all over them.

“The work at the moment is to clear out the damaged area, which is difficult because it’s all encased in concrete, and then we will pull new cables through.”

Although optimistic the first customers would be restored by close of business today, the spokesperson expected repair work to continue for at least a week around the clock.

He estimated the damage bill to be $1 million.

“It’s easier to repair fibre so I expect that will be first,” Middleton said.