AN inquiry will be held into the Warrnambool exchange fire, which left people without phone services, to identify lessons to be learnt.

Minister for Broadband, Communications, and the Digital Economy Senator Stephen Conroy today announced the inquiry.

Landlines across south west Victoria are still out of service as Telstra works to restore services.

This afternoon it was reported mobile service had been restored in Warrnambool.

"I understand the frustration felt by the people and businesses that have been left without a phone and other services," Senator Conroy said.

"Telstra has reconnected 35,000 homes and businesses and restored all mobile phone coverage to the area. They are continuing to work hard to reconnect the remaining services.

"A fire of this type is infrequent, but given how important telecommunications infrastructure is for the day-to-day lives of all Australians, an inquiry is appropriate."

The inquiry will be conducted by the Department of Broadband, Communications, and the Digital Economy.

"I want to hear the views of the affected communities and relevant experts to ensure that disaster mitigation and service recovery plans are as effective as possible if similar events were to occur in the future."