Expected Singapore Telco Merger Lapses after Regulatory Scrutiny
On May 18, Tuas Ltd and Keppel, the parent companies of Simba and M1, announced that the S$1.43 billion (US$1.11 billion) Simba-M1 deal will lapse. The decision came after the Singapore Infocomm Media Development Authority (IMDA) suspended its assessment of the proposed merger due to potential unauthorized use of frequency spectrum by Simba to provide mobile services. Under the Telecommunications Act 1999, unauthorized spectrum use could result in a financial penalty of S$1 million (US$780 thousand) or 10% of the licensee’s annual turnover.
Announced in August 2025, the Simba-M1 deal marked the first telco consolidation in Singapore after decades of liberalization and had the potential to shift the number of telcos to three main players. Keppel has signaled that it will consider other buyers, pushing back divestment plans of M1 by one to two years, and has launched a 90-day plan to streamline efficiency and operational costs. Other telco players are seeking clarity from regulators about future opportunities to consolidate Singapore’s telco sector.