IMDA suspends review of proposed Simba-M1 merger amid probe into possible breach

SINGAPORE – The authorities have suspended their review of Simba Telecom’s $1.43 billion bid for the telecommunications business of M1 amid a probe into an alleged breach.

On May 18, the Infocomm Media Development Authority (IMDA) said it is investigating allegations that Simba could have been using certain radio frequency bands to provide mobile services without authorisation.

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

Singapore-based asset manager Keppel first announced its intention to sell the telecoms business of its subsidiary M1 to rival Simba Telecom in August 2025, in what would be the first telco consolidation in the Republic’s history. Simba is owned by Australia-listed firm Tuas.

Since then, IMDA has been evaluating whether the consolidation would significantly lessen competition or raise public interest concerns. The review also includes ensuring that the operation of critical telecoms infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber-risk landscape.

“Since M1 operates large mobile and broadband networks in Singapore, the assessment has necessarily been detailed and thorough,” IMDA said in its May 18 statement.

Using radio frequencies without authorisation is a breach of the Telecommunications Act and the conditions of Simba’s facilities-based operations licence, said the authority, adding that it will take enforcement action if necessary. If found guilty, Simba could be fined up to $1 million or up to 10 per cent of its annual turnover.

In a May 18 statement on the Australian Securities Exchange, Tuas said its board would review Simba’s alleged unauthorised use of radio frequency bands.

“At this time, discussions with the counterparties to the share purchase agreement are ongoing. Tuas will keep the market advised as developments occur,” it said.

Keppel shares tumbled on May 18, falling as much as 5 per cent in the morning before closing down 2.1 per cent at $10.38. Shares of Simba owner Tuas plunged 62.8 per cent to end at A$2.27 in Sydney.

During a briefing with media outlets and analysts on May 18, Keppel chief executive Loh Chin Hua said that the company would allow the sale and purchase agreement with Simba to lapse when the long-stop date comes up on May 21.

A long-stop date is the contractual deadline by which conditions, including regulatory approvals, must be satisfied or waived, or the parties involved can walk away. The original long-stop date for the deal was March 26, but it was extended once.

Keppel also said it would start carrying out “Plan B”, which includes reducing M1’s technology platform and network costs, using artificial intelligence for automation and product rationalisation.

“In response to the significant challenges facing the telecommunications industry in Singapore, our focus will be on enhancing M1’s efficiency,” Keppel said. “We have a 90-day plan to drive M1’s efficiency, which we will activate with immediate effect.”

During the briefing, M1 CEO Manjot Singh Mann said that the telco would be looking to reduce its capital expenses as its 5G network has been completely deployed.

M1 customers are worried that the reduction in investments could affect network quality.

However, they said they will be watching for further developments before making any drastic moves such as switching telcos.

Sales executive Harry Chew said that he has been experiencing connection issues intermittently in several locations across Singapore for years, including at home.

“But the customer service for other telcos is not efficient either, so whichever you switch to, you’ll go back to square one,” said the 50-year-old, adding that he had previously switched from Singtel to M1.

Nail artist Chayne Chin, 24, said that she, too, has had poor connectivity in shopping malls and on trains.

Unless there are concerns that arise regarding data privacy, she added that she is likely to stick to the status quo.

Though fellow user Ms Ong also raised concerns about potential service instability, she added that she is watching to see how M1 will address concerns on the ground.

The public relations executive in her 40s, who did not want to give her full name, said she hopes that M1 initiatives such as increased use of AI will lead to improvements in reliability, security and overall experience.

Ms Choo J.Y, who has been using M1 for over a decade, said she hopes that the telco’s increased use of AI will help to speed up customer service via the helpline, and that M1 will work on improving its network quality even as it cuts costs.

Ms Choo, who declined to reveal her full name, added that she has been looking to switch telcos for a while, not because of recent developments but because of attractive plans promoted by the likes of GOMO and Circles.Life.

“Their networks have proven to be steady even overseas – if I were to switch telcos, it would be more due to this pull factor,” she said.

Simba’s aggressive bid for M1 was the talk of the town in August 2025 when it was first announced. The combined entity would have more than three million mobile subscribers, trailing behind market leader Singtel, which has 4.5 million subscribers.

Speculation had centred on StarHub instead of Simba as the likely buyer until the announcement.

The proposed Simba-M1 consolidation follows years of liberalisation in the telco industry, which led to lower mobile broadband and fixed broadband prices.

Among the touted benefits was better mobile coverage, indoors and outdoors, by combining both telcos’ mobile antenna sites and pairing their 900MHz spectrum bands. Collectively, they have more than 20 shops and service centres in Singapore.

Simba and M1 had also pledged to continue offering their popular $10 and $12 mobile plans to new subscribers for at least two years after the merger. They had also committed to retaining current prices for existing mobile subscribers for at least two years after the consolidation.

M1 had also undertaken to honour all existing commitments and contracts, including those with mobile virtual network operators (MVNOs). MVNOs provide mobile services without owning a physical network by leasing capacity wholesale from host telcos such as M1, StarHub, Singtel and Simba Telecom. 

Two months after the proposed sale, M1’s MVNO Circles.Life began legal proceedings over M1’s alleged failure to negotiate MVNO contract updates based on a regulatory framework governing fair competition.