TPG Telecom Limited
(ASX:TPM) CEO David Teoh has urged the Government to address a hidden tax attached to the NBN that could ultimately drive up the cost of the network for consumers.
Speaking to media, Mr Teoh warned about the connectivity virtual circuit charge telco providers would have to pay to use the network.
Under the current set up, telco providers have to pay a monthly wholesale cost as well as a CVC cost to rent out the capacity on the NBN in order to provide an internet connection to a customer.
Mr Teoh says this additional CVC charge would ultimately be passed onto consumers through more expensive NBN plans.
NBN Co has flagged that this CVC charge will decrease over time.
TPG generated a net profit of $149 million in fiscal 2013.
