Telecommunications giant Telstra has completed its $1 billion share buyback, with the offer oversubscribed by almost 70 per cent.

Telstra bought back more than 217 million shares or 1.75 per cent of those on issue.

The buyback price was $4.60 per share, a 14 per cent discount on the market price.

At 1110 AEDT on Monday, its shares were down 0.5 cents at $5.385.

Telstra chief executive David Thodey said there had been very strong demand for the buyback, resulting in an over-subscription.

“We are very pleased with the demand and the result, which has enabled us to return surplus capital to shareholders in an efficient way that we expect will have a positive impact on earnings per share,” Mr Thodey said.

Due to the strong demand for the buyback, a 69.79 per cent scale back of tenders was required.

Payment via direct credit for shares bought under the buyback will commence from Tuesday, October 14.