Key considerations hanging over the approval of Simba-M1’s merger

Singapore’s telecommunications sector has never had a merger on the scale of Simba Telecom and M1’s.

Announced on Aug 11, 2025, the deal is Singapore’s first telco consolidation after decades of liberalisation. If approved, it will see the number of full-fledged telcos here shrink from the current four to three.

Sector regulator Infocomm Media Development Authority (IMDA) has yet to announce its decision, almost six months after M1’s parent Keppel and Simba submitted the required consolidation documents. It is understandable, given the implications the decision may have for national security, resilience and market competitiveness.

Simba’s generous $1.43 billion offer to Keppel for M1’s telecom business risks lapsing, as it is valid for six months from Sept 26, 2025 – if a new deadline has not been agreed in writing.

What are the considerations and the possible risks of this consolidation?

Safeguarding critical infrastructure 

The recent revelation that Singapore’s four major telcos had come under attack by cyberespionage group UNC3886 in 2025 serves as a stark reminder that telecommunications services have become as critical as electricity and water.

Any telco chaos could disrupt Singaporeans’ digital way of life, with business and economic repercussions.

Beyond ensuring that prices remain competitive and affordable, how Singapore governs its critical infrastructure also affects its exposure to cybersecurity and foreign interference risks.

At this point, it is not clear if Simba’s systems have been designated critical information infrastructure like those of Singtel, StarHub and M1. The designation comes with obligations – including safeguarding against risks from suppliers and cloud services – under Singapore’s Cybersecurity Act.

But what is clear is that Simba’s 5G network is built on Chinese multinational firm Huawei’s technologies, which have been banned in the United States and the United Kingdom over national security concerns.

If Simba controls one of the two nationwide 5G networks in Singapore through its takeover of M1, Simba will need to do more for cybersecurity. This includes explaining its vendor choices and making vendors and suppliers better account for their security decisions and processes.

M1’s islandwide 5G network is built with StarHub through a joint venture. The shared 5G infrastructure is built on Finnish firm Nokia’s technology. The other nationwide 5G network is operated by Singtel, which uses Swedish firm Ericsson’s 5G equipment.

Singtel and the StarHub-M1 joint venture won the much-coveted licences to operate Singapore’s two nationwide 5G networks in 2020 through a rigorous IMDA contest, which favoured business plans that emphasise security, resilience and national responsibility.

Should Simba assume stewardship of the strategic directions and operations of 5G critical infrastructure in Singapore, the telco may need to satisfy more regulatory reviews.

And while Singtel, StarHub and M1 have parentage links to Singapore investment firm Temasek, Simba is wholly owned by Australia-listed company Tuas, whose principal shareholder is Australian businessman David Teoh.

Although there are no foreign ownership restrictions on telcos in Singapore, the potential threat to national security and economic stability amid evolving foreign interference tactics requires more due diligence. It could be one of the reasons why IMDA is giving the Simba-M1 merger the careful consideration it deserves.

Safeguarding the wholesale market

Market competitiveness is another consideration for IMDA.

The combined Simba-M1 entity would control more than three-quarters of the wholesale market. Mandatory regulatory safeguards may be needed for Mobile Virtual Network Operators (MVNOs) to continue thriving here.

An MVNO provides mobile services without owning a physical network by leasing capacity wholesale from host telcos such as M1, StarHub, Singtel or Simba Telecom. Hence, MVNOs are price takers.

In January 2020, IMDA issued a framework for the wholesale of mobile services to ensure that host telcos do not participate in unfair practices. For instance, host telcos are prohibited from imposing unreasonable, discriminatory traffic management practices, or unilateral termination or suspension of wholesale contracts without sufficient notice.

A drawback is that the framework serves only as a guiding principle.

A 2025 legal dispute between Circles.Life and M1 spotlights the ongoing tension over compliance with the framework. The Straits Times understands that the case, which is over M1’s alleged failure to negotiate MVNO contract updates based on the framework, is pending trial.

Circles.Life had also written to the IMDA stating its concern that the combined Simba-M1 entity would control 77 per cent of the wholesale market. M1 has 2.29 million mobile subscribers.

Circles.Life’s subscriber numbers have not been disclosed. But its impact on competition in Singapore is undeniable. New ideas that it brought to the local market soon became industry standards.

For instance, when it launched in 2016, Circles.Life introduced a self-service app where customers could sign up for new products, turn off services and pay bills – an industry first. All other telcos have since adopted this digital-first approach to serving customers. Circles.Life also introduced the idea of a SIM-only plan, free of the typical two-year contracts. These contract-free plans have since become commonplace.

Fairness in resource allocation

The IMDA would also have to consider objections to the merger voiced by telcos, relating to fairness in the distribution of limited radio frequencies.

These objections mostly centre on the limited 900MHz spectrum, a low-band frequency used for propagating 4G and 5G signals to provide islandwide coverage with minimal equipment.

Low-band frequencies are characterised by their ability to travel long distances and penetrate objects like walls, buildings and trees. They are the backbone of mobile networks for providing coverage indoors and in far-flung locations without installing a lot of equipment.

In the 900MHz space, Simba holds a 10MHz-sized block and M1, 5MHz. StarHub holds a 5MHz-sized block, and Singtel, 10MHz. After the proposed merger, the combined Simba-M1 entity will hold 15MHz worth of the premium band – as much as its two rivals combined.

It is understandable why Singtel and StarHub would kick up a fuss. Allocation of such limited resources should arguably be proportional to the size of a telco’s subscriber base.

For Singtel, whose 4.5 million subscribers represent half the local market, it is unthinkable that the new Simba-M1 entity, with its combined three million mobile users, should hold more of the premium spectrum.

StarHub chief executive officer Nikhil Eapen reportedly said in November 2025 that the combined Simba-M1 entity would have a 900MHz spectrum holding above the current caps, and could have a “structural advantage”.

“As a regulator, you would want to allocate more spectrum to the larger telco,” said an industry source.

But there is no easy solution, as most of the usable spectrum has already been auctioned off, and the rights to use them are not due to expire any time soon.

Uncertainty also surrounds the StarHub-M1 joint venture, called Antina, created in 2020 to build a shared 5G network.

It is in StarHub’s interest to secure quality of service for its two million subscribers by safeguarding its right to access Antina’s network. The fear is that, post-merger, Simba’s one million subscribers will crowd out StarHub users and lead to slower connections.

“Loading Antina’s network with an extra one million subscribers may reduce the 5G quality of service and impact churn on StarHub’s subscriber base,” said an industry expert, who declined to be named.

Churn in the telco business refers to the percentage of subscribers who cancel their services or switch to a competitor over a given period. High churn rates usually indicate customer dissatisfaction and are bad for business as retaining existing customers is typically cheaper than acquiring new ones. 

Expect some horse-trading in the final furlong as Simba races against the clock to finalise the deal, which some said is existential for the telco.

Simba, being the most poorly resourced where 5G spectrum is concerned, will go all out to complete the takeover mission it started. Its rivals will also actively engage in advocacy to hinder the approval process, which could go down to the wire.

Irene Tham is an assistant news editor and oversees tech coverage as The Straits Times’ technology editor. She writes regular columns that look at how technology is shaping the world.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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