MELBOURNE, May 4, 2026, 04:05 AEST
Telstra Group Limited is set to hike prices on the bulk of its mobile plans starting May 5, a move that puts both customer costs and shareholder payouts under the spotlight. The country’s biggest telco is still running an on-market share buy-back, inching closer to its A$1.25 billion cap.
Timing is key here. Telstra counts around 22.5 million retail mobile services across Australia, meaning even small monthly bumps in prices can noticeably lift revenue—assuming customers stick around.
Telstra snapped up 1,029,191 shares on May 1, spending A$5.51 million, according to its latest filing. That brings the tally since the buyback started to 204.4 million shares, costing the company about A$1.03 billion—putting it at roughly 82% of the maximum target. In an on-market buy-back, shares are repurchased directly on the exchange instead of through a tender offer made to shareholders.
Most postpaid mobile users will see their bills go up by A$4 a month. Telstra’s Basic plan jumps to A$74, Essential hits A$84, and Mobile Bundle sets at A$61. The Premium plan remains unchanged at A$99. Several pre-paid options are also getting price hikes—some of them throw in extra data.
Brad Whitcomb, who heads up Telstra’s consumer division, said the company is pushing ahead with these changes as network use climbs and continued investment is needed to maintain “performance, reliability and security.” Telstra is also planning to roll out affordability measures: starting July 1, most Upfront plans will carry a 10% discount for concession card holders who qualify. Telstra.com
Competition’s fierce, but the market isn’t jammed up. According to the ACCC’s newest mobile infrastructure report—drawing on numbers from Telstra, Singtel Optus and TPG Telecom—Telstra leads the pack with 11,767 mobile sites. Optus follows, tallying 9,391, while TPG runs 5,207. TPG users, though, get a boost: they also connect via extra sites thanks to the Optus-TPG network-sharing deal.
Mobile sits at the heart of Telstra’s equity pitch. In February, the company posted a first-half profit of A$1.12 billion, with mobile revenue coming in at A$5.77 billion. Telstra also tightened its full-year underlying EBITDAaL forecast to between A$8.2 billion and A$8.4 billion. That figure—EBITDAaL—tracks operating profit after lease expenses.
Back in February, Chief Executive Vicki Brady said the buy-back should help “earnings and dividend per share growth”. Over at eToro, market analyst Zavier Wong described Telstra as “one of the most defensive names on the ASX”. Reuters
Telstra finished the session at A$5.37 on May 1, gaining 0.56% for the day and marking a 10.27% advance for 2026 to date, data from Intelligent Investor show. Regular ASX trading hours are roughly 10 a.m. to 4 p.m. in Sydney.
Still, there’s a catch. Those pricier bills could push cost-conscious customers to hunt for better deals or ditch Telstra altogether, especially since the company’s own guidance points out plan prices aren’t set in stone—and no-lock-in customers have the option to swap plans monthly or just walk. The buy-back programme is just as fluid; Telstra’s filing makes clear it can pause or scrap it whenever it wants.
Now comes the question of whether Telstra’s May price bumps hold up without losing too many customers. Success there, and mobile revenues could see more upside, with the buy-back cutting down the share tally. If customers push back, though, the revenue lift might not add up to what the buy-back narrative implies.
