The Turnbull government will seek to introduce a new levy on telecommunications companies to help pay for the roll-out of the NBN in regional areas, a change it admits will lead to higher prices for internet consumers.

The move goes against the advice of the government's own hand-picked expert panel, which warned such a levy "causes greater distortions than it is intended to remedy".

Communications Minister Mitch Fifield announced on Monday that the government would legislate to create a new Regional Broadband Scheme that is estimated to raise $40 million a year. The Department of Communications has found the cost of the scheme would largely be passed on to consumers through higher prices.

The scheme would see NBN's rival super-fast broadband networks pay a levy of $7.30 for each fixed-line connection, with the contribution indexed to increase each year. By 2022 the levy would rise to $8 per connection.