MELBOURNE, April 27, 2026, 01:04 (AEST)
- Telstra snapped up 2.45 million shares on Friday, bringing total spend for its current buyback program to roughly A$983.6 million.
- There’s about A$266 million still available on the up-to-A$1.25 billion buyback, by value.
- Capital is being returned ahead of the May 5 mobile price hikes and the rollout of updated coverage-map regulations that apply to Telstra, Optus and TPG.
Telstra Group Limited snapped up 2,452,989 shares on Friday, spending A$13.16 million. That brings total shares repurchased under the current on-market buyback to 195.5 million, with around A$983.6 million shelled out so far. The buyback, set with an upper limit of about A$1.25 billion instead of a fixed number of shares, is scheduled to run through June 30, though it could be paused or ended at any moment, according to the filing.
Here’s why this is front and center now: Telstra’s buyback is doing heavy lifting for earnings per share at the same moment it’s pushing for higher prices from mobile customers. Shares finished the session at A$5.38, up 0.75%. Data from Morningstar, cited by Intelligent Investor, shows a projected 10.47% gain for 2026.
Telstra’s public test phase is kicking off soon. Starting May 5, most postpaid mobile customers will see monthly bills climb by A$4, while pre-paid users face roughly a A$5 increase; the Basic plan moves up to A$74 from A$70, Essential jumps to A$84 from A$80, but Premium sticks at A$99. “Customers are doing more on our network than ever before,” wrote consumer boss Brad Whitcomb, who said higher charges will go toward improving performance, reliability, and security. Telstra is also rolling out new affordability options: a 5GB Access plan, and from July 1, a 10% discount for concession-card holders on most Upfront Postpaid plans. Telstra.com
Back in February, Chief Executive Vicki Brady tied the boosted capital return to Telstra’s wider push on earnings and dividends, following the company’s move to lift its buyback cap from up to A$1 billion to A$1.25 billion. “The on-market share buy-back is expected to support earnings and dividend per share growth,” Brady said, referencing the buyback’s first-half progress, earnings gains, and the firm’s balance sheet. Telstra.com
Telstra stuck to its core pitch after a solid set of numbers. Back in February, Reuters flagged that first-half profit attributable jumped 9.4% to A$1.12 billion—just edging past Visible Alpha consensus. Mobile income hit A$5.77 billion. The company also outlined a 10.5 cent interim dividend and tightened its FY26 underlying EBITDAaL guidance to between A$8.2 billion and A$8.4 billion. “One of the most defensive names on the ASX,” eToro market analyst Zavier Wong told Reuters. Reuters
Consumer advocates aren’t buying it. ACCAN Chief Executive Carol Bennett described the mobile price hikes as “a slap in the face for millions of consumers.” She argued customers shouldn’t be left to shoulder increases that outstrip both inflation and what the community expects. Information Age
The network chief at Telstra is dealing with a more defined set of ground rules. Australia’s communications watchdog, the ACMA, has ordered Optus, Telstra and TPG to roll out standardised 4G and 5G coverage maps by June 30. These maps will break service down into four buckets: good, moderate, basic or none. ACMA chair Nerida O’Loughlin called the move a way to hand the public a “like-for-like comparison.” ACMA
Coverage is still a big card for Telstra. TPG Telecom and Optus have challenged Telstra’s stance that areas with weaker signals should be considered covered. The regulator’s draft standard, on the other hand, used a tougher signal threshold to define what counts as service.
Still, capital returns aren’t a sure thing. If price hikes start to sting, expect mobile churn to tick up as customers jump ship for rivals. Spectrum renewal costs also hang in the balance; Telstra argues that ACMA’s preferred pricing would slap A$2.8 billion on the tab for its expiring licences—well above the A$1.2 billion Telstra deems reasonable. ACMA, for its part, values the full licence package at A$7.34 billion.
Telstra goes into Monday with its buyback nearly 80% done and shares sitting close to their highs. What’s next isn’t as neat. Higher mobile bills, stricter coverage rules, and spectrum costs all threaten to squeeze the cash return’s impact.
