IMDA halts assessment of proposed M1-Simba merger pending probe into spectrum usage

[SINGAPORE] The Infocomm Media Development Authority (IMDA) announced on Monday (May 18) that it has suspended its assessment of the proposed consolidation between M1 and Simba until further notice.The IMDA said that while the review was in progress, it learnt that Simba could have been using radio frequency bands that were not assigned to the telco to provide mobile services.“This would constitute unauthorised use of frequency spectrum, which is a breach of the Telecommunications Act 1999 and the conditions of Simba’s Facilities Based Operations Licence,” IMDA said.The authority added that it is investigating the matter and “will take the appropriate enforcement actions if it 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 authority has been assessing the proposed deal according to the framework set out in the Telecom and Media Competition Code, IMDA noted.Navigate Asia ina new global orderGet the insights delivered to your inbox.This entails evaluating whether the consolidation would “significantly lessen competition or raise public interest concerns”.It also includes ensuring that the operation of critical telecommunications infrastructure meets the stringent cybersecurity requirements necessary in a heightened cyber risk landscape.“Since M1 (the target of the acquisition) operates large mobile and broadband networks in Singapore, the assessment has necessarily been detailed and thorough,” said IMDA.SEE ALSOKeppel, Simba Telecom agree to extend long-stop date for proposed M1 dealIn response to the announcement, Keppel which in August 2025, proposed to sell M1’s telco business to Simba at S$1.43 billion enterprise value in an all-cash deal, said that it “respect its decision”.“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,” said Keppel in a statement on Monday.The asset manager said it intends to focus on “enhancing M1’s efficiency to improve its run rate EBITDA, through rightsizing the company and reducing costs, without adversely affecting customer experience”.This is in response to the “significant challenges” plaguing the telecommunication industry in Singapore, it added.A 90-day plan to drive M1’s efficiency will be activated “with immediate effect”, said Keppel.This plan includes reducing technology platform costs and network costs, using Artificial Intelligence for automation, as well as product rationalisation. More details are to be shared during Keppel’s H1 2026 results announcement.“Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore needs and will benefit from consolidation and Keppel remains open to opportunities for divestment,” the asset manager said.While the target to monetise S$2-S$3 billion of non-core assets in 2026 “remains unchanged”, Keppel said that the proposed divestment of Keppel’s stake in M1’s telecommunication business will be removed from its announced monetisation for 2025.Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.