The passage is about the events surrounding the collapse of a proposed merger between M1 and Simba, a telecom operator in Singapore. It also highlights the impact of this event on Keppel's asset-light transformation plans and comments on the cost pressures and declining average revenue per user (ARPU) in the Singapore telecom industry.
SINGAPORE: Singapore's telecommunications sector is expected to face continued cost pressures after the Infocomm Media Development Authority (IMDA) suspended its review of the proposed merger between M1 and Simba on May 18, effectively ending a deal which analysts had hoped would ease intense competition in the market.
The collapse of the merger between Singapore's third- and fourth-largest telcos is also seen as a setback for Keppel's asset-light transformation plans. Keppel confirmed during a media and analyst briefing on May 18 that it would allow the sale and purchase agreement between M1 and Australia-backed Simba to lapse once the long-stop date is reached on May 21. The deadline had previously been extended on March 26 after initially being due to expire earlier.
Analysts additionally pointed to Simba's alleged breach of the Telecommunications Act and the conditions attached to its facilities-based operations licence. Following the collapse of the deal, Keppel chief executive Loh Chin Hua said the company would implement a 90-day plan aimed at improving M1's operational efficiency.
However, the company maintained its broader target of divesting between $2 billion and $3 billion worth of non-core assets in 2026
Infocomm Media Development Authority (IMDA) Singapore Telecommunications Sector ARPU Telecommunications Infrastructure Keppel Merger Between M1 And Simba
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