In a conference call with investors, the telco’s chief executive officer Vicki Brady said that Telstra plans to increase network density and accelerate its rollout of 5G standalone during fiscal year 2027
In sum – what to know:
5G and AI – Telstra plans to accelerate 5G standalone and increase network density, capacity, and lower latency for AI applications.
Digital infrastructure – Aura is more than halfway built, with more than 8,500 kilometers of fiber in the ground and six routes ready for service; Telstra also expanded subsea cable capacity through partnerships with Google and Keppel.
FY2027 priorities – Telstra will focus on mobile transformation, network-as-a-product offerings, AI capabilities, digital infrastructure revenue, and disciplined costs and capital allocation.
Australian carrier Telstra has said it will accelerate its investment in mobile networks, AI capabilities, and digital infrastructure in fiscal year 2027 as it seeks to position the company to benefit from growing demand for connectivity and AI-related infrastructure.
During a recent earnings call, Telstra’s chief executive officer Vicki Brady said the telco was operating at a critical point as AI and global investment in digital infrastructure accelerate, with the company aiming to participate in the value created by those trends while maintaining network resilience and investing in Australia’s digital future.
Brady said Telstra had invested more than AUD9.5 billion ($6.7 billion) in its mobile network over the past five years, including AUD3.8 billion in regional Australia. Total capex and spectrum investment exceeded AUD19 billion over the same period.
In fiscal year 2026, Telstra’s investment in its networks and digital infrastructure was around AUD800 million.
Brady highlighted five areas of focus for the coming financial year. Mobile transformation is the first. Telstra plans to increase network density and accelerate its rollout of 5G standalone, which Brady said would provide a more consistent experience, more capacity, and lower latency for AI applications.
“Investment in mobile networks will be critical to unlocking national benefits from AI, as this is the way most people will use it,” Brady said.
Networks as products is the second priority. Telstra plans to continue evolving its network-as-a-product offerings and expand its mobile network APIs, allowing developers to integrate network capabilities into applications. The carrier also plans to progress products across mobile and fixed services and develop new commercial models.
AI and data capabilities form the third priority for fiscal 2027. Telstra plans to continue building employee data and AI capabilities while using AI to transform its business and customer experience.
Brady highlighted initiatives including agentic customer care, expanded fraud detection and prevention, and improved fixed network planning and optimization.
Telstra said more than 15,000 employees completed at least one course through its data and AI academy during fiscal year2026. It also said 86% of employees with a Copilot license used it weekly or more during June.
Digital infrastructure is the fourth priority. Telstra plans to drive revenue from its digital infrastructure assets, including the Aura Network, while assessing future requirements to support Australia as an AI and digital innovation hub.
During the call, the executive said Telstra was seeing “very strong demand signals” for its digital infrastructure assets and was converting those signals into contracted value. Google, AWS, Infosys, and Microsoft have signed long-term contracts across Telstra’s Aura Network, subsea cable or long-haul fiber assets, with Microsoft described as the foundational partner on Aura.
Telstra is more than halfway through construction of Aura, with more than 8,500 kilometers of fiber in the ground and six routes ready for service. Brady also said Telstra had expanded its subsea cable capacity through partnerships with Google and Keppel.
The fifth priority is cost and capital discipline. Brady said Telstra would continue investing in network resilience and growth while maintaining its focus on productivity, simplification, and positive operating leverage.
The company completed an AUD1.25 billion on-market share buyback in June and has announced a further buyback of up to AUD1 billion.
Overall, Brady said Telstra’s strategy is focused on continuing to invest in networks and digital infrastructure while building the capabilities needed to participate in the growth of AI and Australia’s broader digital economy.
