The National Broadband Network has moved to quash a backlash after it floated the prospect of a levy on internet companies to provide video streaming on services like Netflix or Stan.

The NBN Co floated the idea of charging telcos more for video streaming. Credit:Shutterstock

The $51 billion taxpayer-funded infrastructure business faced intense criticism on Wednesday after revelations a review of its pricing floated an additional cost for video streaming above the standard data rate to be levied on telecommunications companies.

Some industry sources expressed concerns telcos would pass on any cost hikes to the public while others warned it could affect "net neutrality" where all services are treated the same.

The NBN Co on Wednesday issued a lengthy statement distancing itself from the idea of a "Netflix tax" amid a public backlash about the pricing review, saying access to high-quality video streaming is an important part of the service.