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A federally protected telephone tower built on Baron Gina Rinehart's New England property was affected by reception problems.
The community of Kingstown has waged a difficult campaign to have the tower, lit two weeks ago, co-located with a police tower and emergency services at the highest point in the district.
But it was built at the Sundown Valley Pastoral Company, acquired by Hanbad Prospecting, a subsidiary of Mrs. Rinehart, last August. Telecommunications companies pay an annual fee to landowners for setting up towers on their property.
Jeff Condren, a resident of Kingstown, led the charge for a tower funded by the Federal Government's Mobile Blackspot program and termed it an "epic failure."
"Now that the tower has been in operation for several weeks, it is obvious that the community's concerns about the location and the service were well justified," he said.
"Service levels are only a few miles in all directions.
"The installed position, while benefiting the immediate local community," she added, as the tower is just 700 meters from Mom's house, is located on low ground.
New England MP Barnaby Joyce announced the construction of the tower as part of the federal government's Mobile Black Spot program in June 2015.
A spokesman for Mr. Joyce said that the exact location of the tower had been chosen by Telstra.
"Any payment or rental agreement is the responsibility of the owner and the operator of the mobile network," said a spokesman for Mr. Joyce.
"The federal government does not participate in this process.
"The Commonwealth identifies the location of the black dot, in this case Kingstown – the exact site of the base station is determined by the applicant."
Telstra's engineering teams perform a number of technical badessments when searching for a site for a base station, but a spokesperson said the final decision was up to the federal government .
"For the Federal Government's Mobile Black Spot program, the decision ultimately rests with the government," he said.
Telstra would not confirm the amount paid to Hanbad Prospecting for access to the property and land use of the Sundown Valley Pastoral Company, as the agreement is confidential.
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