Simba, M1 to retain popular $10 and $12 mobile plans, current prices after proposed merger
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The two telcos have committed to retain current prices for existing mobile subscribers for at least two years after their proposed consolidation is completed.
ST PHOTOS: GIN TAY
SINGAPORE - Simba Telecom and M1 said they will continue to offer their popular $10 and $12 mobile plans to new subscribers for at least two years after their proposed merger is completed.
The two telcos also committed to retain current prices for existing mobile subscribers for at least two years after their proposed consolidation, which was first announced in August,
These commitments, made in their proposal to the Infocomm Media Development Authority (IMDA), were published on the regulator’s website on Oct 1.
“This is to ensure that mobile plans, which are integral to everyday life, are kept affordable,” according to their proposal to IMDA.
In a consultation paper launched on Oct 1, IMDA also asked if the industry and the public have any concerns that the proposed merger could substantially lessen competition here.
On Aug 11, Keppel said it would be selling the telecommunications business of its subsidiary M1 to rival Simba for $1.43 billion, in what is the first telco consolidation in Singapore’s history.
IMDA said in its consultation paper: “Respondents are also invited to comment on any other related issues – with factual support and reasoned analysis to the extent feasible – not covered in this document, if they believe such issues are relevant to IMDA’s assessment of the proposed transaction involving the applicants.”
The public consultation ends on Oct 31 at 9am.
M1 has also undertaken to honour all existing commitments and contracts. For instance, current subscribers of M1’s mobile virtual network operators (MVNO) will also not be affected. Circles.Life is one such MVNO.
Simba and M1 said in their proposal: “Additionally, if there are any new MVNOs who wish to enter the market, Simba and M1 will commit to supporting them in accordance with the IMDA’s established wholesale framework.”
The telcos also said the consolidation is likely to benefit consumers, as market players will be compelled to provide better quality service, faster internet speeds and better customer service, all while maintaining current competitive prices.
They added that consumer choice and attractive deals will remain, as Simba and M1 will continue to operate as separate brands and offer affordable mobile plans.
“Although there will be an effective reduction from four to three market players, it will strengthen, not diminish, the competitiveness of the national telecom landscape,” said Simba and M1.
This is because the two telcos will benefit from economies of scale – which, in turn, will lead to improved efficiencies and better capital allocation into their networks and innovative technologies, they added.
With regard to coverage, the telcos said subscribers will be covered by both Simba and M1’s mobile antenna sites.
They added that an early goal would be to pair Simba and M1’s 900MHz spectrum bands to allow deeper and wider coverage, and better penetration of mobile signals within buildings.
“With the combined spectrum holdings and having access to both Simba and M1’s antenna sites, consumers will in fact experience better quality of service and faster speeds,” said the telcos.
Subscribers will also be able to receive customer support at the stores of both telcos after the consolidation is completed, the telcos said. Collectively, they have more than 20 shops and service centres across Singapore.
The deal, which is still pending approval from IMDA, follows years of liberalisation within the telco industry that saw the lowering of mobile broadband and fixed broadband prices.
Just a day after the merger was announced, rival Starhub completed its takeover of the fixed broadband business of MyRepublic, having already held a controlling stake of 50.1 per cent since 2022.
