Telstra is searching for mobile growth opportunities in Asia after plans for a $US1 billion ($A1.33 billion) expansion into the Philippines collapsed.
Australia's biggest mobile and internet provider could spend up to hundreds of millions of dollars on acquisitions or joint ventures in Asia, chief executive Andrew Penn said on Monday, noting the group's $US697 million acquisition of submarine cable network Pacnet last year.
"You should expect transactions of a similar scale and magnitude," he told analysts and media on a conference call to discuss Telstra's abandoned joint venture talks with food and beer giant San Miguel.
Telstra's investment decisions will continue to be guided by its capital management framework, Mr Penn stressed.
He declined to say if Telstra would consider another share buyback now that its move into the Philippines is off.
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Telstra and San Miguel agreed at the weekend to ditch talks about setting up a third mobile operator in the Philippines after failing to agree on commercial terms.
Mr Penn declined to elaborate on the sticking points, but confirmed talks had been ongoing for more than 12 months. Telstra first publicly disclosed the talks in August.
Telstra - which needs to find new growth drivers as its mobile dominance comes under increasing pressure from rivals Optus and Vodafone Hutchison - saw the Philippines as attractive because the country only has two mobile players.
Demand for data is also climbing in the Philippines as smartphones become cheaper. The Philippines, which has a population of around 98 million, has one of the lowest mobile network speeds in the world at the moment.
Mr Penn said that while the opportunity was strategically attractive, it was "obviously crucial that the commercial arrangements achieved the right risk-reward balance for all involved".
The news came as a relief to some investors, who were concerned about Telstra's expensive move into the Philippines, where it faced intense competition and a long road to profitability.
Morgan Stanley telecom analysts, which are bearish on Telstra, said in a research note that the announcement is "a step in the right direction for improved capital allocation but we look for capital being returned to shareholders before becoming more positive".
Telstra shares were 12.0 cents, or 2.33 per cent, higher at $5.28.
While its joint venture talks have ended, Telstra has offered to continue technical network design and construction consultancy support to San Miguel.
San Miguel wasn't immediately available to comment on its future plans.
