POOR internet and mobile services are creating a lot of frustration in Lakes Entrance, in Victoria's east, as the town's population swells.

Traders in the seaside holiday spot are expected to voice concerns about telecommunication services after battling weeks of limited mobile and internet services.

Lakes Entrance Business and Tourism president Tony Fredericks said during the peak holiday period traders found Efpos machines offline, battled internet services and experienced poor mobile including text messaging coverage.

"Last year I guess we brushed on it and it wasn't really an issue. This year's it's been worse," Mr Fredericks said.

"On New Year's Eve you expect it. It's a bit of a standard joke that you need to send your 'Happy New Year' texts at 10pm.

"For 11-and-a-half-months it's right but it's just now when we are trying to make money for the rest of the year that there's a problem."

Mr Fredericks, who runs a cruise operation, said booking agents were backing up information as well as phoning him regarding arrangements because he wasn't receiving emails while on the water.
 
He said the region was busy and believed the issue would hit profits as more people opted to pay for things on card rather than cash.

Mr Fredericks said the town had had a quieter than normal winter and many businesses were attempting to catch up on trade.

The association meets later this month and plans to discuss ways to bring the issue to the phone companies' attention.

A Telstra spokesman said greater demand and the increased popularity of smart phones and tablets had resulted in some popular holiday areas experiencing slower speeds or occasional dropouts.