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SINGAPORE – Singapore\u2019s telecommunications sector has never had a merger on the scale of Simba Telecom and M1\u2019s. <\/p>\n
Announced on Aug 11, 2025, the deal is Singapore\u2019s 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.<\/p>\n
Sector regulator Infocomm Media Development Authority (IMDA) has yet to announce its decision, almost six months after M1\u2019s 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.<\/p>\n
<\/p>\n Simba\u2019s generous $1.43 billion offer to Keppel for M1\u2019s telecom business<\/p>\n <\/a> risks lapsing, as it is valid for six months from Sept 26, 2025 \u2013 if a new deadline has not been agreed in writing.<\/p>\n What are the considerations and the possible risks of this consolidation?<\/p>\n The recent revelation that <\/p>\n Singapore\u2019s four major telcos had come under attack by cyberespionage group UNC3886 in 2025<\/p>\n <\/a> serves as a stark reminder that telecommunications services have become as critical as electricity and water.<\/p>\n Any telco chaos could disrupt Singaporeans\u2019 digital way of life, with business and economic repercussions.<\/p>\n Beyond ensuring that prices remain competitive and affordable, how Singapore governs its critical infrastructure also affects its exposure to cybersecurity and foreign interference risks.<\/p>\n At this point, it is not clear if Simba\u2019s systems have been <\/p>\n designated critical information infrastructure<\/p>\n <\/a> like those of Singtel, StarHub and M1. The designation comes with obligations \u2013 including safeguarding against risks from suppliers and cloud services \u2013 under Singapore\u2019s Cybersecurity Act.<\/p>\n But what is clear is that Simba\u2019s 5G network is built on Chinese multinational firm Huawei\u2019s technologies, which have been banned in the United States and the United Kingdom over national security concerns.<\/p>\n 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.<\/p>\n M1\u2019s islandwide 5G network is built with StarHub through a joint venture. The shared 5G infrastructure is built on Finnish firm Nokia\u2019s technology.\u00a0The other nationwide 5G network is operated by Singtel, which uses Swedish firm Ericsson\u2019s 5G equipment.<\/p>\n Singtel and the StarHub-M1 joint venture won the much-coveted licences to operate Singapore\u2019s two nationwide 5G networks in 2020 through a rigorous IMDA contest, which favoured business plans that emphasise security, resilience and national responsibility.<\/p>\n Should Simba assume stewardship\u00a0of the strategic directions and operations of 5G critical infrastructure in Singapore, the telco may need to satisfy more regulatory reviews.<\/p>\n And while Singtel, StarHub and M1 have parentage links to Singapore investment firm Temasek, <\/p>\n Simba is wholly owned by Australia-listed company Tuas<\/p>\n <\/a>, whose principal shareholder is Australian businessman David Teoh.<\/p>\n Although there are no foreign ownership restrictions\u00a0on 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\u00a0the\u00a0careful consideration\u00a0it deserves.<\/p>\n Market competitiveness is another consideration for IMDA.<\/p>\n 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.<\/p>\n 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.\u00a0Hence, MVNOs are price takers.<\/p>\n 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. <\/p>\n A drawback is that the framework serves only as a guiding principle.<\/p>\n