Boko Haram fighters are currently in Damboa Local Government Area of Borno State.
A security source told Daily Trust that the insurgents invaded the town around 5pm.
The source said shortly after the fighters stormed the town, the network went off, raising suspicion that they destroyed it.
Troops are currently engaging the armed men in a gun battle.
The attack happened hours after Lieutenant General Farouk Yahaya, Chief of Army Staff, tasked his men to remain committed to secure the nation.
General Yahaya gave the charge in an interview with news men during a working visit to the Battalion Headquarters of Doma local government area of Nasarawa State to inspect some facilities in the barracks.