MELBOURNE, May 4, 2026, 04:05 AEST
Telstra Group Limited will raise most mobile plan prices from May 5, putting customer bills and investor returns in focus as Australia’s largest telco pushes ahead with an on-market share buy-back that is already deep into its A$1.25 billion ceiling.
The timing matters. Telstra says it provides about 22.5 million retail mobile services in Australia, so even modest monthly increases can move revenue if customers stay put.
A May 1 filing showed Telstra bought back 1,029,191 shares that day for A$5.51 million. Since the programme began, it has bought 204.4 million shares for about A$1.03 billion, or roughly 82% of the planned maximum. An on-market buy-back means the company buys its own shares through the exchange, rather than making a tender offer to all holders.
For customers, the near-term change is simpler: most postpaid mobile plans rise by A$4 a month. Telstra’s Basic plan moves to A$74, Essential to A$84 and Mobile Bundle to A$61, while the Premium plan stays at A$99. Pre-paid mobile prices also rise on several recharges, with some plans getting more data.
Brad Whitcomb, Telstra’s group executive for consumer, wrote that the company was making the changes because customers were using the network more and Telstra needed to keep investing in “performance, reliability and security”. Telstra also says it will offer affordability options, including a planned 10% discount from July 1 for eligible concession card holders on most Upfront plans. Telstra.com
The competitive backdrop is tight, but not crowded. The ACCC’s latest mobile infrastructure report is based on data from the three national mobile network operators: Telstra, Singtel Optus and TPG Telecom. It showed Telstra with 11,767 total mobile sites, ahead of Optus at 9,391 and TPG at 5,207, although TPG customers also access additional sites through the Optus-TPG network-sharing arrangement.
Mobile is the centre of the equity story. Telstra reported first-half profit of A$1.12 billion in February, helped by mobile income of A$5.77 billion, and narrowed its full-year underlying EBITDAaL guidance to A$8.2 billion to A$8.4 billion. EBITDAaL is a measure of operating profit after lease costs.
Chief Executive Vicki Brady said in February the buy-back was expected to support “earnings and dividend per share growth”. Zavier Wong, market analyst at eToro, called Telstra “one of the most defensive names on the ASX”. Reuters
Telstra shares closed at A$5.37 on May 1, up 0.56% on the day and 10.27% so far in 2026, according to market data published by Intelligent Investor. ASX normal trading runs from about 10 a.m. to 4 p.m. Sydney time.
But there is a trade-off. Higher bills can give price-sensitive customers a reason to review cheaper plans or switch carriers, and Telstra’s own customer advice notes that plan prices may change again and that no-lock-in customers can change plans once a month or leave. The buy-back is not fixed either: Telstra’s filing says it can suspend or terminate the programme at any time.
The next test is whether the May price rises stick without much customer loss. If they do, Telstra gets a cleaner run at mobile revenue growth while the buy-back reduces the share count. If they do not, the billing gains could look smaller than the capital return story now suggests.
