ASX Telecom Stocks Under Pressure: Companies Down More Than 30% in a Year

Sonal Goyal

08 July 2026 06:13 PM AEST

ASX Telecom Stocks Under Pressure: Companies Down More Than 30% in a Year

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Highlights

TPG Telecom and Spark New Zealand have both declined by more than 30% over the past 12 months.
Investors continue to monitor subscriber growth, pricing competition and network investment across the telecommunications sector.
Despite resilient demand for mobile and broadband services, sector valuations have remained under pressure amid changing earnings expectations.
Telecommunications companies continue investing in digital infrastructure while navigating a competitive operating environment.

Australia's telecommunications sector continues to provide essential services through mobile connectivity, broadband networks and enterprise communications. While demand for digital connectivity has remained resilient, several listed telecom operators have experienced weaker share price performance over the past year as investors reassessed earnings outlooks, competitive pressures and capital expenditure requirements.

Although telecommunications businesses typically generate recurring revenue, rising operating costs, network investment and intense competition have weighed on investor sentiment across parts of the sector. Among the stocks that have recorded notable one-year declines are TPG Telecom Ltd (ASX:TPG) and Spark New Zealand Ltd (ASX:SPK).

TPG Telecom Ltd (ASX:TPG)

TPG Telecom shares closed at $3.56 on July 8 after declining 0.84% during the session. The stock traded between $3.54 and $3.62, giving the company a market capitalisation of approximately $6.99 billion. Over the past 12 months, the shares have fallen 33.83%.

TPG Telecom remains one of Australia's largest telecommunications providers, offering mobile, broadband and enterprise connectivity services through brands including Vodafone Australia, TPG, iiNet, Internode and felix mobile. Despite continued demand for telecommunications services, investors have remained focused on subscriber growth, pricing competition and the company's ongoing investment in network infrastructure. Market participants are also monitoring operating margins, customer retention and cash flow as the company competes in Australia's highly competitive telecom market.

Spark New Zealand Ltd (ASX:SPK)

Spark New Zealand ended the session at $1.52, down 0.33% for the day. The shares traded between $1.513 and $1.535, while the company maintains a market capitalisation of approximately $2.87 billion. The stock has declined 33.62% over the past year.

As New Zealand's largest telecommunications company, Spark provides mobile, broadband, cloud, cybersecurity and enterprise technology services. Investors continue to assess subscriber growth, broadband demand and the performance of the company's digital services business. Ongoing investment in network capabilities, together with competitive market conditions, remains an important consideration for investors evaluating the company's long-term growth prospects.

Sector Remains Focused on Growth and Investment

The telecommunications industry continues to benefit from structural demand for digital connectivity as consumers and businesses rely increasingly on mobile networks, cloud services and high-speed broadband. However, operators continue to invest heavily in network infrastructure while managing competitive pricing and evolving customer expectations.

Investors across the sector remain focused on subscriber additions, average revenue per user (ARPU), operating margins and capital allocation. Demand for enterprise connectivity, cybersecurity and cloud-based services is also becoming an increasingly important driver of long-term growth.

Conclusion

Although the telecommunications sector remains supported by stable demand for essential connectivity services, investor sentiment has remained cautious over the past year. TPG Telecom and Spark New Zealand have each recorded declines of more than 30% as markets continue to evaluate earnings growth, competitive dynamics and investment requirements. Going forward, subscriber growth, network performance and operational execution are expected to remain the key factors influencing valuations across the sector.

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