Residents in areas of Tullimbar have been suffering poor internet connectivity due to their distance from the exchange.

While they struggle with wireless broadband or a limited number of ADSL connections, waiting for a National Broadband Network connection, they watch as new residential developments have the NBN cables run in like their water and electricity connections.

Representatives from Telstra and NBN Co met with residents on Sunday to hear their concerns and it was this meeting Mr Jones spoke about in Parliament.

He said the issue was one of "infrastructure failure" and that residents were not happy with the quality of connection they were receiving.

"There is very limited ADSL," Mr Jones said in Parliament. "When they do get it, they're often paying for ADSL but getting dial-up speed and they feel they're getting ripped off. And I agree with them."

Mr Jones said the meeting left Telstra with a clear message.

"[The residents] understand what Telstra is providing is a workaround until they get the NBN," he said.

"They are willing to pay a fair price for their broadband but no more than they should be paying for the service they get."

A Telstra spokesman said testing showed the ADSL+1 services were operating within the designated speed range.

He was not happy with Mr Jones' claims of a rip-off.

"Those comments are disappointing, especially as we attended the community meeting on Sunday where we outlined our commitment to work with Tullimbar residents in addressing their concerns," the spokesman said.

"Only last June, Telstra completed two backhaul projects to provide additional bandwidth and increase the number of ports, but that upgrade has also reached capacity and as we stated at the meeting, we are continuing to work towards implementing another ports upgrade to satisfy local demand."