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Highlights:
- Telstra shares have struggled their way up in last couple of months.
- The NBN rollout, 5G introduction and launch of competitive firms have posted several challenges before the company in recent times.
- While on year-to-date basis, TLS shares have lost more than 6%, on a yearly basis, the share price has gained almost 5% (as of 1:00 PM AEST).
- Today, the shares are trading a tad down at AU$3.9 apiece.
Telecommunication giant Telstra Corporation Limited (ASX:TLS) was seen marking tiny losses on ASX on Tuesday. Telstra shares were trading 0.251% lower at AU$3.960 apiece at 12:55 PM AEST.
The benchmark S&P/ASX 200 Communication service sector (INDEXASX:XTJ) was 0.145% down at 1447.7 points at 12:50 PM AEST.
Why has Telstra been in news lately?
Telstra has been buzzing in news for different reasons.
The launch of NBN Broadband services by the Australian Federal government has been affecting Telstra's business. Telstra has enjoyed its monopoly being the only telecom service provider in Australia. But now, it is not considered the only option by the Australians.
However, the launch of the 5G network service by Telstra could be a turning point for the business. This is likely to drive more revenue to the company.
Furthermore, the telecommunication giant is considered to be a promising dividend payer by investors. According to historical records, Telstra paid a fully franked interim dividend worth AU$0.08 per share to its eligible shareholders on 1 April 2022. Out of this, the company paid AU$0.02 per share as a special dividend and the remaining amount (AU$0.06 per share) as an ordinary dividend to its shareholders.
What else is happening within Telstra?
Telstra recently announced that it has agreed to extend its strategic partnership with Microsoft for an additional five years. This deal is one of the most significant ones that Telstra has signed with global firms.
As a part of this partnership, both companies will thrive to achieve digital transformation in Australia by complementing each other’s technical capabilities. Microsoft has also stated that it will be focusing on improving the Asia-Pacific subsea network developed by Telstra.
Transforming Australia from a digital perspective is being treated as a priority by both parties. Both Telstra and Microsoft will be focusing on improving network conditions across Australia as the demand for remote work, education, online streaming and gaming increases day by day.
Telstra’s share price movement on the ASX:
Shares of Telstra have gained 5% in past one year while the share price has shed off 6.28% on year-to-date basis. TLS shares have moved forward 1.67% in last one month while has gained 0.64% in last five trading days. In last five years, the company has lost 2.83% of its share price value (as of 1:20 PM AEST).
