Highlights

  • The ACCC has opened a 12-month inquiry into mobile services and potential mandatory domestic roaming rules.
  • Telstra’s regional network coverage advantage is central to the debate over competition and wholesale access.
  • Telstra reported mobile service revenue growth of 5.6% and mobile EBITDA growth of 4% in 1H26.
  • The inquiry may assess whether mobile roaming and radio access network services should be regulated.
  • Telstra’s coverage strategy remains a key factor in customer retention, pricing and network investment.

Telstra Group Limited (ASX:TLS) is facing renewed scrutiny over its regional mobile network advantage after the Australian Competition and Consumer Commission (ACCC) opened a new inquiry into potential mandatory mobile roaming and network-sharing arrangements. The review could influence how Australia’s largest telecommunications provider competes in regional markets.

Why it matters — Telstra’s regional network advantage

For years, Telstra’s competitive position in mobile services has been supported by its regional coverage footprint. The company’s network reaches approximately 3 million square kilometres and covers around 99.7% of Australia’s population.

This coverage has supported customer demand among regional users, businesses and government services that require broad connectivity.

Any regulatory move requiring Telstra to provide greater access to rivals could affect the value of this network advantage, which remains an important part of the company’s mobile strategy.

What happened — ACCC launches mobile roaming inquiry

On 5 August 2026, the ACCC commenced a 12-month public inquiry into the mobile services market.

The inquiry will consider whether services including domestic roaming and radio access network services should be declared, potentially requiring operators to provide access to competitors under regulated conditions.

The ACCC has indicated that changes in the telecommunications sector and concerns from regional consumers and industry participants are factors behind the review.

A discussion paper is expected around September 2026, followed by regional consultation forums.

Background — previous network-sharing debate

Mobile roaming has been a long-running issue in Australia’s telecommunications sector.

In December 2022, the ACCC rejected a proposed network-sharing arrangement between Telstra and TPG Telecom, and the Australian Competition Tribunal later blocked the arrangement in June 2023.

The proposed agreement would have provided TPG access to approximately 3,700 regional Telstra sites, increasing its population coverage from around 96% to 98.8%.

The Tribunal determined that the arrangement could reduce competition and affect incentives for network investment.

The latest inquiry revisits the same challenge: improving regional coverage while maintaining incentives for infrastructure investment.

The numbers — Telstra’s mobile position

Telstra enters the review with continued mobile business growth.

At its half-year results on 19 February 2026, Telstra reported 135,000 handheld mobile net additions for the six months.

Mobile service revenue increased 5.6%, while mobile Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 4% to $2.7 billion.

Postpaid handheld average revenue per user increased 4.8%, while prepaid average revenue per user increased 14.7%.

Telstra shares traded around $4.89 in late July 2026, representing a market capitalisation of approximately $54 billion, although market prices change over time.

Strategic significance

A mandatory roaming or radio access network requirement could influence the economics of Telstra’s mobile business.

Greater competitor access to Telstra infrastructure could allow rival operators to offer broader regional coverage without matching the same level of historical network investment.

This may affect Telstra’s ability to differentiate through coverage and maintain pricing advantages.

For investors, the key issue is whether regulation changes the long-term return profile of Telstra’s regional infrastructure investment.

Opportunities

The inquiry outcome remains uncertain, and Telstra may continue to argue that commercial arrangements provide a better balance between competition and investment.

The company has previously stated that regulated network access could reduce incentives for future infrastructure investment, particularly in regional areas.

Commercial network-sharing agreements may allow Telstra to generate wholesale revenue while maintaining greater control over network economics.

Future coverage initiatives, including temporary disaster roaming and additional infrastructure investment, may also support Telstra’s position in regional connectivity.

Risks and counterarguments

The regulatory environment has become more challenging following network reliability issues, coverage concerns and increased calls for improved regional connectivity.

Rivals have supported greater consideration of mobile roaming arrangements, while policymakers continue to assess consumer outcomes.

If the ACCC recommends mandatory access arrangements, Telstra could face regulated wholesale pricing, increased network traffic and potential pressure on its coverage-based differentiation.

However, any regulatory decision would likely involve further consultation and review before implementation.

What to monitor next

Investors will monitor the ACCC discussion paper expected around September 2026 and how it addresses domestic roaming compared with radio access network services.

Other key areas include Telstra’s full-year results, mobile performance, temporary disaster roaming rollout, the Universal Outdoor Mobile Obligation expected in 2027 and future spectrum decisions.

Submissions from telecommunications companies and further ACCC guidance will provide insight into the likely direction of regulatory policy.

A balanced view

The ACCC review represents an inquiry rather than a regulatory decision. No mobile service has currently been declared, and previous reviews have not resulted in mandatory roaming requirements.

However, changing market conditions, network reliability concerns and increased focus on regional connectivity have renewed attention on the issue.

Telstra’s mobile network remains a major competitive asset, supported by customer demand and recent mobile growth. The key question is how future regulation balances competition, affordability and incentives for continued network investment.