IMDA suspends Simba-M1 deal review over alleged spectrum breach investigation
Singapore’s telecom regulator has suspended its review of Simba’s proposed S$1.43 billion acquisition of M1 after uncovering a possible unauthorised use of radio frequency spectrum during the assessment process.
- IMDA suspended its review of Simba’s proposed acquisition of M1 pending an investigation into alleged spectrum misuse.
- The regulator said the suspected breach could affect its assessment of competition and public interest concerns.
- Keppel has activated a contingency plan to improve M1’s operational efficiency if the deal falls through.
SINGAPORE: The Infocomm Media Development Authority (IMDA) has suspended its assessment of Simba’s proposed acquisition of M1 after identifying a potential regulatory breach during its review process.
In a media release issued on 18 May 2026, the regulator said it would halt its evaluation of the proposed consolidation “until further notice” while investigations continue into whether Simba had been using radio frequency bands not assigned to it to provide mobile services.
IMDA said such conduct could amount to unauthorised use of frequency spectrum, which would breach the Telecommunications Act 1999 and the conditions attached to Simba’s Facilities-Based Operations Licence.
“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,” the authority said.
The regulator added that enforcement action could follow if investigations confirm the alleged breach.
“As the investigation findings may be material to IMDA’s assessment of the proposed consolidation, IMDA has decided to suspend its review of the proposed consolidation until the investigation has been concluded,” it said.
Regulatory scrutiny intensifies
The proposed acquisition was first announced in August 2025, when Keppel disclosed plans to sell its subsidiary M1 to Simba for S$1.43 billion.
The transaction remains subject to IMDA approval under Singapore’s Telecom and Media Competition Code, which requires regulators to assess whether mergers could substantially lessen market competition or create broader public interest concerns.
The review also involves scrutiny of how critical telecommunications infrastructure would be operated amid growing cybersecurity risks and increasing reliance on digital connectivity.
IMDA noted that M1 operates extensive mobile and broadband networks across Singapore, making the review process “detailed and thorough”.
The suspension introduces fresh uncertainty into what would have been one of Singapore’s most significant telecommunications consolidation moves in recent years.
Keppel activates contingency plan
Following IMDA’s announcement, Keppel said it understood the regulator’s considerations and respected the decision to suspend the review.
“While awaiting the outcome of IMDA’s assessment, we have also been working on a Plan B, in case Keppel retains majority ownership of M1, which we will now start executing,” the company said on Monday.
Keppel said the Singapore telecommunications sector continued to face significant industry challenges, prompting a renewed focus on operational efficiency within M1.
“In response to the significant challenges facing the telecommunication industry in Singapore, our focus will be on enhancing M1’s efficiency to improve its run rate EBITDA, through rightsizing the company and reducing costs, without adversely affecting customer experience,” it said.
The company added that it would immediately activate a 90-day plan aimed at improving efficiency across M1’s operations.
According to Keppel, the measures include reducing technology platform and network costs, deploying artificial intelligence for automation, and rationalising products and services.
The firm said additional details would be disclosed during its first-half 2026 financial results announcement.
Industry consolidation still on table
Despite the regulatory setback, Keppel maintained that Singapore’s telecommunications sector would benefit from industry consolidation and said it remained open to future divestment opportunities.
“Even as we undertake the efficiency drive at M1, we believe that the telecommunication industry in Singapore is in need of and will benefit from consolidation and Keppel remains open to opportunities for divestment,” the company said.
Keppel also stated that its broader target of monetising between S$2 billion and S$3 billion of non-core assets in 2026 remained unchanged.
However, it confirmed that the proposed divestment of its stake in M1’s telecommunications business would no longer be included in its announced monetisation plans for 2025.
