The National Broadband Network (NBN) was launched in Tasmania on Monday, with 90,000 homes expected to be connected to the network. However, the roll out was overshadowed by reports that the initial launch of the NBN in May cost taxpayers almost $140,000 with only seven initial customers.

The $40-billion high-speed broadband network's first phase covered Midway Point, Scottsdale and Smithton. The second phase, which is about to be completed, is expected to benefit 11,000 homes in Deloraine, Kingston Beach, George Town, Sorell, South Hobart, St Helens and Triabunna.

The Monday roll out of NBN provided faster broadband connections to communities in Burnie, Davenport, Launceston and Hobart. Construction is scheduled to be completed in 2015.

NBN is the largest infrastructure project in Australia and intends to make available up to 100 megabits per second to 90 per cent of Australian subscribers.

"Just the rollout itself will have a significant impact in Tasmania, with new direct jobs and vast opportunities for businesses providing additional supplies, transport and other services," Australian Prime Minister Julia Gillard said in a statement.

Ms Gillard estimates the NBN will create 800 jobs in Tasmania alone. Faster broadband connection would allow more Australians to work from home, which would reduce the need for travel and in the process cut the country's carbon footprint.

By 2016, the Internet is expected to contribute $70 billion per annum to Australia's economy.

Ms Gillard led the switch on ceremony of the NBN in May. The Daily Telegraph reports that the publicity stunt cost the government $138,474.05, while the event yielded only an initial seven customers who signed up for free trial. At that time there were 3,000 homes in New South Wales which were NBN-ready.

With Ms Gillard in the May launch was Communications Minister Stephen Conroy and NBN Company boss Mike Quigley.