How will M1 acquisition affect telco market

This may be a lost opportunity for other players.

Simba Telecom Pte. Ltd.’s acquisition of M1’s telecommunications business is seen to lower the market’s competitive intensity.

“We see an opportunity lost for StarHub, which will now have to contend with a significantly larger challenger with improved scale and efficiencies,” RHB said in its new analysis.

Keppel Ltd. has announced that its agreed to sell M1’s telecommunications business to Simba Telecom for $1.43b in cash. It will receive about $1b for its 83.9% stake in M1.

“We think Simba- M1 could still drive market share gains with discounted offerings in the medium term with price-ups to happen over time, corresponding with network improvements,” RHB said.

Meanwhile, Maybank said that the acquisition is positive step towards rational competition as operators in Singapore have competed intensely for the past several years.

“M1 and Simba combined will lead to equitable market share amongst telcos,” it said. “Whilst Simba entered Singapore as an aggressive #4 mobile operator’ in 2020, the real reason for the competition was the incumbents’ response by offering cheaper packages through digital brands as well as through mobile virtual network operators (MVNO).”

MVNO contracts are typically 3 to 5 years with limited sales channel reach. Maybank sees potential for competition to start subsiding over the coming years with consolidation.

The bank expects the “merged company will gain spectrum market share and network superiority” a huge differentiator is not sees as Singapore already has wide network coverage.

Maybank said that Starhub will also benefit from network synergies as Starhub and M1 operate a singular 5G access network.

“Starhub won’t be footing the bill of industry consolidation and complex network integration, and as such, we see better certainty of its dividends,” the company said.

Singtel is also seen to gain as competition eases. However, the positive impact will be limited since less than 10% of Singtel’s SoTP comes from Singapore consumers, Maybank said.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia