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Highlights
- Telstra announces price increases across key service plans
- Profit potential may grow as mobile remains core to earnings
- Yield-seekers eye Telstra among top ASX dividend stocks
Telstra Group Ltd (ASX:TLS), Australia’s largest telecommunications provider, has announced upcoming changes to its pricing structure that are drawing attention across the ASX300 index. With the company set to raise prices on a range of services starting 1 July 2025, investors and consumers alike are watching closely to see how these adjustments may affect both earnings and Telstra’s market standing.
As part of its long-term strategy, Telstra is updating prices on most of its postpaid mobile, mobile broadband, home internet, and small business internet plans. The telco explained that these changes are essential to maintaining and improving its mobile network capabilities, especially as it invests in emerging technologies like satellite-to-mobile messaging and enhances the reliability and security of its services.
A key motivation behind the price revision is rising wholesale costs from the National Broadband Network (NBN), which is impacting home internet margins across the sector. Telstra cited this as one of several contributing factors to the decision.
Here’s a breakdown of some of the upcoming changes:
- The 50GB ‘Basic’ mobile plan will rise 7.7% to $70/month.
- The 180GB ‘Essential’ plan increases 6.7% to $80/month.
- The 25GB mobile bundle jumps 9.6% to $57/month.
- Mobile broadband services will see increases ranging from 12% to 50%.
- Lower-costing NBN plans go up 2.7% to 4.5%, while premium-tier plans drop in price.
- For business customers, the $115/month plan increases to $120/month, while the $140/month plan is cut to $125/month.
With mobile services remaining the backbone of Telstra’s earnings, these changes could support revenue growth in FY26. The company’s pricing power, bolstered by its market dominance, allows it to adjust rates while continuing to deliver reliable service and innovation.
For income-focused investors, Telstra remains a fixture among top ASX dividend stocks. As of now, it offers a fully franked dividend yield of around 4%, which may appeal to those seeking stable returns within blue-chip allocations.
As part of the broader ASX300, Telstra's latest move reflects a trend of leading companies leveraging pricing flexibility to navigate inflationary pressures and evolving infrastructure costs.
With a strong balance sheet, extensive network reach, and continued investment in innovation, Telstra (ASX:TLS) positions itself as a compelling name within Australia’s communications landscape.
