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Singaporean operator Simba Telecom is facing mounting regulatory pressure, having been served a show cause notice by the Infocomm Media Development Authority (IMDA) over allegations that its unauthorized use of radio frequency bands was intentional and approved by senior management.
The IMDA has outlined potential regulatory actions, which include the suspension or cancellation of the company's telecom license.
The show cause notice gives the company until 16 November 2026 to explain and refute these allegations, which include breaches of the city state's telecom regulations, as well as concerns about the company's governance and compliance practices.
The IMDA's deepening probe into Simba Telecom was disclosed by the operator's parent company, Tuas, in a filing with the Australian Securities Exchange on Monday.
In its disclosure, Tuas revealed that the Singaporean telecom regulator had outlined six allegations, including the deployment of dynamic spectrum sharing of the 2100MHz band spectrum for both 4G and 5G at 133 sites for intermittent periods between 2022 and 2023, despite Simba Telecom having only been authorized to use the spectrum for 5G.
Related:Keppel to explore new buyers for M1 amid stalled Simba deal
Simba Telecom is also alleged to have used the 2340-2360MHz band spectrum at 92 sites for intermittent periods between 2023 and 2026 without authorization.
The IMDA alleged that both instances were intentional and approved by the company's senior management.
Simba Telecom is also alleged to have preempted authorization to deploy 5G indoor radio access network equipment at two locations in 2023. The company is also said to have failed to comply fully with a production order issued by the IMDA, with the failure to produce documents said to be "deliberate and intentional". The IMDA has also expressed concerns about deficiencies in the company's governance and compliance culture.
Potential regulatory actions
Tuas stated that the IMDA has identified potential regulatory measures it could take against Simba Telecom.
The operator is facing a potential fine of either 1 million Singapore dollars (US$780,896) or 10% of the annual turnover of the relevant part of its business, whichever is higher.
Other regulatory penalties could include suspending or cancelling the operator's spectrum rights. The IMDA could also cancel or suspend Simba's telecoms license or reduce its validity period.
Tuas noted that the IMDA has not yet decided whether to take regulatory action against Simba or what form this might take.
"Simba intends to respond to the show cause notice," Tuas said in its ASE filing. "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."
Related:M1 deal on the table as Keppel, StarHub confirm talks
Simba Telecom's alleged unauthorized use of spectrum came to light in May when the IMDA suspended its review of the operator's proposed S$1.43 billion ($1.12 billion) acquisition of M1 in order to investigate the matter.
The investigation resulted in the collapse of the proposed acquisition. Keppel, which holds a controlling interest in M1, is now in talks with StarHub regarding a potential deal.
About the Author
Senior Editor, APAC, Light Reading
Gigi Onag is Senior Editor, APAC, Light Reading. She has been a technology journalist for more than 15 years, covering various aspects of enterprise IT across Asia-Pacific.
She started with regional IT publications under CMP Asia (now Informa), including Asia Computer Weekly, Intelligent Enterprise Asia and Network Computing Asia and Teledotcom Asia. This was followed by stints with Computerworld Hong Kong and sister publications FutureIoT and FutureCIO. She had contributed articles to South China Morning Post, TechTarget and PC Market among others.
She interspersed her career as a technology editor with a brief sojourn into public relations before returning to journalism, joining the editorial team of Mix Magazine, a MICE publication and its sister publication Business Traveller Asia Pacific.
Gigi is based in Hong Kong and is keen to delve deeper into the region’s wide wild world of telecoms.