The Telstra Group Ltd (ASX: TLS) share price is in the spotlight after the telco announced another price increase.
Telstra is Australia’s largest telecommunications provider, which gives the company market power.
Telstra increases mobile plan prices
The company recently announced that from 1 July 2025, it’s making changes to most of its postpaid mobile, data (mobile broadband), home internet and small business internet plans.
Telstra said that changing its prices helps it to invest more to improve its mobile network and performance, including the reliability and security of services and continue to have local support on hand.
It also said it’s developing a new satellite to mobile text messaging capability that it’s testing now and will make available when it’s ready. This could help users in remote locations.
Telstra also noted that the NBN is also increasing the price it charges telcos (like Telstra) for wholesale internet, which is another factor that impacts its home internet pricing.
If the price increases lead to higher profits, I imagine it will help the Telstra share price.
Plan changes
Telstra outlined the changes for its various mobile plans.
The 50GB ‘basic’ mobile plan will see a 7.7% increase to $70 per month.
The 180GB ‘essential’ mobile plan will experience a 6.7% increase to $80 per month.
The 300GB ‘premium’ mobile plan won’t see any price change.
The 25GB ‘mobile bundle’ cost will rise by 9.6% to $57 per month.
Telstra’s mobile broadband will see an increase of between 12% to 50%, depending on the data usage.
The lower-costing NBN plans will see an increase of between 2.7% to 4.5%, while the two higher-costing plans will see a price reduction.
For business internet, the $115 per month plan will increase 4.3% and the $140 per month plan will be reduced to $125 per month.
Final thoughts on the Telstra share price
As the mobile division is the main earnings generator for Telstra, it seems as though the business’ profit can grow in FY26 as a result of this change.
Telstra has the ability to continue boosting its profit from price rises, though I don’t think it should continue with rises significantly stronger than inflation for many years because it could become less appealing to customers and lead to customer losses to a competitor.
For now, I think Telstra shares are appealing as a large ASX share buy, particularly for investors focused on dividends. It currently has a fully franked dividend yield of approximately 4%.
