In a landmark shift for Singapore's telecommunications industry, Keppel is set to sell its subsidiary M1's telecom business to rival Simba Telecom for a whopping $1.43 billion. This consolidation marks a significant milestone as the first merger in Singapore's telco history, following years of industry liberalization that dramatically reduced mobile and fixed broadband prices.

A Brief History of Singapore’s Telecom Transformation

Back in the 1990s, the telecom landscape in Singapore was heavily skewed in favor of Singtel, which monopolized the sector and became one of the largest corporations in the country. Meanwhile, advanced markets like the US and UK thrived on competitive prices and superior services, prompting the Singapore government to take action.

In 1996, the government aimed to transform Singapore into Asia's leading information and communications hub by ending Singtel’s monopoly. The company lost its sole provider license for mobile services in 1997 and for fixed line and international services by 2007.

The Emergence of Competition and Choice

2023 saw the entry of M1, Singapore's second mobile operator, in April 1997, initially capturing 10% of the market due to enticing packages. Shortly after, StarHub joined the fray in 2000, making waves with the introduction of free incoming calls.

As competition intensified, consumers reveled in the benefits — lower IDD charges and multiple rounds of price slashes for mobile services fueled a dramatic rise in mobile adoption, skyrocketing from a mere 13.6% penetration in 1992 to over 100% by 2006.

Innovation or Stagnation?

Despite the initial burst of competition, Singapore’s mobile market eventually became stagnant as three major telcos dominated, paying little attention to innovation or differentiation. They primarily focused on long-term contracts to boost revenue per user.

The Fourth Player Enters the Arena!

To rejuvenate the market, the Infocomm Development Authority (IDA) sought to introduce a fourth telco in 2015. Simba Telecom, originally TPG Singapore, emerged victorious in the airwave auction, officially entering the market in 2016. After four years of preparation, they launched their first commercial plan in April 2020 — a SIM-only deal providing 50GB for just $10 per month, the most affordable option available.

The Rise of MVNOs: A New Era of Affordability

Simultaneously, the IDA's 2016 initiative paved the way for mobile virtual network operators (MVNOs) to enter Singapore's telecom ecosystem. These entities lease network capacity from major telcos, allowing them to offer highly competitive SIM-only plans. Brands like Circles.Life, Maxx, and Gomo have since emerged, providing incredible value to consumers.

As the Simba-M1 deal signals a new chapter in Singapore's telecom history, consumers are poised to benefit from greater competition and innovation in the years to come. Will this merger be the catalyst for a more dynamic and affordable telecom future? Stay tuned!