Malcolm Turnbull has not ruled out breaking off and selling parts of the publicly owned national broadband network corporation but says “now is not the time” to do so.

Splitting NBN Co into separate businesses – based on the different technologies it employs to deliver broadband – was among 19 recommendations for market-based reform in an expert review of the infrastructure project handed down on Wednesday.

But in an initial response, the communications minister appeared to reject much of the panel’s advice, suggesting it would further delay the implementation of the network, increase industry uncertainty and lead to “large losses for taxpayers and the budget”.

He said breaking up the company now “would distract its management and delay the provision of high-speed broadband to all Australians”, but said the move, aimed at fostering competition in the sector, “cannot be ruled out”.

He told ABC Radio on Thursday the first priority was to finishing building the troubled network. “Frankly this project has been in such a mess, it is such a big job to sort it out, we’ve got to get the thing built,” Turnbull said.

“It’s up to the government of the day to work out whether they want to break it up. The time may come. You always have to have that optionality.”

The panel, led by Dr Michael Vertigan, also recommended scrapping a ban on other internet infrastructure providers competing with NBN Co, the creation of a new industry-specific regulator, and asking property developers to meet the cost of NBN connection fees.

But Turnbull said allowing companies such as TPG to construct competing broadband networks, which could cut up to 10% from NBN Co’s revenue, would “take time and inevitably involve uncertainty”.

He said the government was not “proposing to go down the full cost recovery mode” by charging property developers to connect to the NBN, a cost he admitted would be passed on to consumers. But he said the government was “looking at other ways in which, without recovering the full cost, we can level the playing field”.

Labor’s communications spokesman, Jason Clare, called on Turnbull to reject an “NBN tax” on homebuyers.

“He hasn’t ruled this out,” Clare said. “If this goes ahead then it will mean people pay more for their new home than they otherwise would. It will mean that the cost of homes will go up and that’s not fair.”

The government is expected to provide a full response to the report by the end of the year.