Singapore mobile market stays fierce as merger fails

Pricing pressure has cut mobile revenue by one-third since 2015.

Singapore's mobile market will likely remain highly competitive in the medium term after the proposed merger between the country's third- and fourth-largest mobile operators was terminated, according to Morningstar Equity Research.

The research firm said the termination of the deal is likely to keep competition elevated in the medium term.

It estimated that pricing pressure has reduced mobile revenue in the market by around one-third since 2015, with the lower revenue now shared amongst four mobile network operators and at least 10 mobile virtual network operators.

Morningstar said mobile revenue for StarHub and Singtel each fell by around 10% year on year in the March quarter, adding pressure on industry profits. Customer numbers, however, remained broadly flat.

Morningstar said Simba's proposed acquisition of M1's mobile business may have helped stabilise pricing, but the transaction was terminated in May.

Separately, Simba reported revenue growth of 26% but an earnings before interest, tax, depreciation, and amortisation (EBITDA) decline of 4.4% for the six months ended January 2026.

“Operating profit has been positive for the past 18 months. Its proposed acquisition of M1 was terminated in May,” Morningstar said.

The report added that Simba has been free cash flow positive for the past 2.5 years to January 2026.

Despite the EBITDA decline in the six months ended January 2026, free cash flow increased due to higher operating cash flow and lower capital expenditure.