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 move comes as IMDA said that 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,” it said.

IMDA has therefore suspended its review of the proposed consolidation while it investigates the matter and added that it “will take the appropriate enforcement actions if it is established”.

The authority has been assessing the proposed deal according to the framework set out in the Telecom and Media Competition Code, IMDA noted.

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.

In 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 will respect IMDA’s decision.

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Keppel said on Monday that it has been working on a “Plan B”, in case it retains majority ownership of M1.

The asset manager said it intends to focus on “enhancing M1’s efficiency to improve its run rate Ebitda (earnings before interest, taxes, depreciation and amortisation) 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.

“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 billion to 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.