IMDA suspends review of proposed M1-Simba deal amid spectrum probe

Singapore’s Infocomm Media Development Authority (IMDA) has suspended its assessment of the proposed consolidation between M1 and Simba Telecom until further notice, following concerns that Simba may have used radio frequency bands that were not assigned to it.

According to IMDA, the regulator had been assessing the proposed consolidation under the framework set out in the Telecom and Media Competition Code, including whether the deal would significantly lessen competition or raise public interest concerns.

The regulator added that its review also covered whether the operation of critical telecommunications infrastructure met Singapore’s cybersecurity requirements, given that M1 operates large mobile and broadband networks.

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However, while the review was ongoing, IMDA said it learnt that Simba “could have been using radio frequency bands that had not been assigned to them to provide mobile services”.

The unauthorised use of spectrum would constitute a breach of the Telecommunications Act 1999 and the conditions of Simba’s Facilities-Based Operations Licence, IMDA said, adding that investigations are ongoing and enforcement action may follow if the breach is established.

“As the investigation findings may be material to IMDA’s assessment of the proposed consolidation, IMDA has decided to suspend its review of the proposed consolidation until the investigation has been concluded,” the regulator said.

In response to IMDA’s announcement, Keppel said it respected the regulator’s decision and would begin executing a contingency plan in the event it retains majority ownership of M1.

“While awaiting the outcome of IMDA’s assessment, we have also been working on a Plan B, in case Keppel retains majority ownership of M1, which we will now start executing,” the company said.

Keppel added that its focus would now be on improving M1’s operational efficiency amid ongoing pressures in Singapore’s telecommunications sector. This includes enhancing M1’s run rate EBITDA through “rightsizing the company and reducing costs, without adversely affecting customer experience”.

The company said it has activated a 90-day efficiency plan with immediate effect, which will include reducing technology platform and network costs, using AI-driven automation, and product rationalisation. More details are expected during Keppel’s 1H 2026 results announcement.

Despite the suspension, Keppel said it continues to believe the Singapore telco industry would benefit from consolidation and remains open to future divestment opportunities.

Back in August last year, Keppel unveiled plans to divest M1’s telco business to Simba in an all-cash deal valued at an enterprise value of SG$1.43 billion.

Under the proposed transaction, Keppel was set to receive close to SG$1 billion in cash proceeds for its 83.9% effective stake in M1, while retaining the company’s ICT business.

At the time, Keppel said the deal would create a “nimble and competitive digital-first telco” by combining M1’s cloud-native network and service capabilities with Simba’s digital consumer model.

The proposed consolidation also sparked concerns from industry players. In November last year, Circles.Life warned that the merger could harm consumers if regulatory safeguards were not properly enforced.

The mobile virtual network operator said in a submission to IMDA that the merged entity would control 77% of the wholesale market and more than 38% of the postpaid retail market, raising concerns around competition and fair wholesale access.

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