Telcos aggressive 5G pivot intensifies amidst looming M1S merger

Operators are bundling unlimited roaming across Asia and 165 countries into new postpaid offerings.

Singapore’s telecommunications market is expected to remain highly competitive in the medium term as major network operators (MNOs) seek to defend and grow their market share ahead of the pending Simba-M1 (M1S) merger, RHB said.

The report said that recent moves by the telcos indicate a continued focus on value-driven offerings, with roaming packages increasingly included in mainstream plans.

There are no signs of easing competition as MNOs gear up for the consolidation of M1S. Mobile virtual network operators (MVNOs) continue to face marginalisation.

In November 2025, both Singtel and StarHub unveiled upgraded 5G postpaid plans. Singtel now provides significantly larger roaming allowances across Asia, including unlimited roaming in Malaysia on its top-tier plan. StarHub’s new 5G Unlimited+ plans cover roaming in 165 countries, alongside the launch of a new home fibre service under its secondary brand, Eight.

In Opensignal’s latest Singapore Mobile Network Experience Report in December, Singtel was named Best Network in Singapore, leading outright in ten performance categories after previously sharing wins in several areas.

Meanwhile, StarHub recorded the fastest overall download speed at 155.9 Mbps, five percent faster than second-placed Singtel. M1 retained the top spot for 5G download speed, ahead of Singtel and StarHub, which were statistically tied for second.

Regulators are expected to announce their stance on the M1S merger by the second quarter of 2026.

A key point of scrutiny is the wholesale market, where the combined entity would hold an estimated 77% share.

Telcos reported a mixed set of results in the third quarter of 2025.

Singtel’s second quarter and first half of the financial year 2026, ending in March 2026, showed earnings before interest and taxes growth of thirteen percent year-on-year, driven by strong performance at Optus and NCS.

Management has raised EBIT growth guidance to a range of high single-digits to low double-digits, reflecting ongoing uncertainties from the Triple Zero network incident at Optus last September.

The company also declared an interim dividend of 8.2 Singapore cents per share, including a variable realisation dividend (VRD) of 1.8 cents.

By contrast, StarHub reported weaker-than-expected results, with the first nine months of 2025 core earnings down 28%  year-on-year  due to heightened competition and high operating leverage in its mobile business.

Analysts expect the full-year 2025 (FY2025) to be largely a washout for the company, with FY25 core earnings projected to fall 18% before rebounding 20.7% in FY26.

Management’s plan for $60m in additional cost reductions over the next three years will be closely watched.

Analysts maintain a neutral stance on the sector. Singtel remains the preferred pick due to strong overseas earnings, solid operational execution, and disciplined capital management.

Meanwhile, StarHub faces earnings headwinds but is supported by a strong balance sheet and steady dividends.

Key risks for the sector include ongoing competition, adverse regulatory developments, and weaker-than-expected dividend payouts.