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IMDA could impose financial penalties of up to 10 per cent of the annual turnover of the relevant part of Simba’s business or S$1 million, whichever is higher.<\/p>\n
Other possible actions include suspending or cancelling Simba’s spectrum rights or telecommunications licence, shortening its licence period, or imposing additional regulatory obligations to address governance deficiencies.<\/p>\n
Simba has until Nov 16 to respond to the show cause notice.<\/p>\n
Tuas noted that IMDA has not reached any conclusions on whether regulatory action should be taken against Simba or what form such action might take.<\/p>\n
“Simba intends to respond to the Show Cause Notice,” the company said.<\/p>\n
“As the matter remains under consideration by the regulator and no findings have been made or confirmed, Tuas does not intend to provide further comment on the matters raised in this announcement.”<\/p>\n
IMDA first disclosed its investigation into Simba in May, saying it had uncovered possible unauthorised spectrum use by the telco.<\/p>\n
The regulator suspended its review of Simba’s proposed S$1.43 billion acquisition of M1, saying the findings of its investigation could be material to its assessment of the deal.<\/p>\n
The proposed acquisition, which would have consolidated two of Singapore’s four mobile network operators, was subsequently terminated after the deadline for its completion passed.<\/p>\n
Monday’s filing sets out more specific allegations, including that certain instances of unauthorised spectrum use were intentional and approved by senior management.<\/p>\n
Radio frequency spectrum refers to the electromagnetic waves used to carry wireless communications, including mobile phone calls and data.<\/p>\n
IMDA regulates the allocation and assignment of spectrum to telecommunications operators, which are authorised to use specific frequency bands for their services.<\/p>\n
These rules are intended to prevent interference between wireless services and ensure that operators use spectrum in accordance with their assigned rights and licence conditions.<\/p>\n<\/div>\n
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