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Jeffrey Hutton is a Morningstar contributor.

To watch a related video on Telstra's earnings, please click here.

Telstra (TLS) is considering a share buyback after it gets the regulatory nod to reorganise so it can operate alongside the federal government's National Broadband Network (NBN).

Known as the Structural Separation Undertaking (SSU), an agreement with the Australian Competition and Consumer Commission (ACCC) is "imminent," chief executive David Thodey told analysts at the company's first-half earnings announcement on Thursday.

"First we get the SSU nailed," Thodey said. "Then we'll talk about capital management."

For investors who have long relied on Telstra's dividends for steady income, the guidance may come as a relief amid falling interest rates on term deposits in recent months.

Telstra kept its full-year dividend guidance steady at 28 cents fully franked. The company's 14-cent interim dividend, which will be paid in a few weeks, implies a fully franked yield of 4.1 per cent, said Peter Esho, chief market analyst at City Index.

"That's very attractive to investors seeking income given the recent decline in cash deposit rates," Esho said.

"Telstra should continue to find favour but its gains will be capped until the NBN deal finally gets ACCC acceptance and a firm capital management policy is set."

Shares of Telstra fell 2 per cent after the company released its results on Thursday morning.

Telstra's caution underlines dramatic technological and regulatory shifts buffeting the company, which is rushing to tap into demand for mobile services and broadband while coping with a stunning drop in income at its digital media businesses, added to the ongoing rollout of the $38-billion NBN.

The company reached an $11-billion agreement last year with the government to hand over fixed-line customers and infrastructure to the NBN.

Telstra's first-half net income rose nearly 23 per cent to $1.47 billion - roughly in line with analyst expectations - on sales of $12.4 billion. Revenue climbed 1.2 per cent during the period, the company said in a statement.

Telstra said full-year earnings before interest, tax, depreciation and amortisation will see "low single digit growth" during the 12 months ending 30 June.

An increase in mobile subscribers was countered by a fall in sales at the company's Yellow Pages Sensis business. Telstra added almost 1 million new mobile services in the six months ending 31 December.

Fixed-line telephone revenue extended its decline of 9 per cent, while domestic mobile revenue increased almost 11 per cent. Revenue from the struggling Sensis business was down 24 per cent to $528 million because of problems implementing a new digital strategy and fewer businesses taking out advertisements in the Yellow Pages.