Birdsville phones are out of action, and the town might be out of business until the New Year.

Phones lines to the outback Queensland town have been cut since Christmas Eve, meaning businesses cant access landlines for Eftpos and credit card payments.

And many families have not been able to receive calls from loved ones over Christmas.

The whole town, as well as the remote cattle stations along the Diamantina River and Cooper Creek right through to Windorah, are cut off, Federal Member for Maranoa Bruce Scott said.

"The Birdsville [medical] clinic, which is connected by a landline, has also been cut off," Mr Scott said.

"This could mean the difference between life and death in some circumstances.

"Landline communication in the outback is absolutely vital."

Telstra said its crews have been trying to locate the fault since Christmas morning, but their task has been made difficult by the large distances between remote phone towers.

Mr Scott has called upon the federal and state governments to invest in upgrading the antiquated phone lines to the iconic Queensland town.

Its not good enough, keeping them cut off, he said.

This town still relies on what can only be described as a third-world communications network. Its about time we saw this upgraded to an optic fibre cable network.

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