The Telstra Corporation Ltd (ASX: TLS) share price is having a positive December 2021 – it's currently up around 2%.
That adds to what has actually be a market-beating year for Telstra shares.
The Telstra share price has gone up 38% this year, which compares to the S&P/ASX 200 Index (ASX: XJO) return of 12% this year.
What has been going in December 2021?
The telecommunications giant hasn't announced much during December 2021. It has continued with its share buy-back, which is a way to return capital to shareholders and improve the per-share statistics such as earnings per share (EPS).
However, there was one market sensitive announcement that was released this month.
Telstra said that it had secured the maximum possible low band spectrum to maintain its "leading" mobile network.
Earlier this month, the telco said that it had invested $616 million in the Australian Communications and Media Authority's 850/900 MHz band auction to secure 2x10MHz – this is the maximum Telstra could bid for under the competition limits set by the government.
Telstra now has more spectrum than any other carrier, which it said was important given the larger customer base and it will help it provide the best mobile coverage and service.
This spectrum is particularly important for its 5G rollout and it will help provide better coverage indoors and other difficult to reach places in metro locations.
Over the seven years to the end of FY22, it will have invested $11 billion in its mobile network nationally, with $4 billion invested in the mobile network. It's aiming to provide 5G coverage to 95% of the population by 2025.
What do analysts think of the Telstra share price?
There are quite a few brokers that like Telstra shares at the moment. A recent note from Ord Minnett re-iterated its buy rating on the telco.
Ord Minnett's price target on Telstra is $4.60, which is around 10% higher than where it is today.
The broker notes that the telco is getting stronger in non-metro locations with its ongoing investment.
Analysts are also positive on the Digicel Pacific acquisition and how it is structured. It adds to, and diversifies, the telco's earnings.
Three months ago, Telstra revealed its T25 strategy which involves more network coverage, profit growth and margin growth, a goal of growing the dividend over time and a further reduction in costs. It's looking to reduce net fixed costs by a further $500 million between FY23 to FY25.
At the current Telstra share price, Ord Minnett thinks that it's valued at 24x FY23's estimated earnings.
