Simba-M1 deal setback dims hopes for telco tie-ups: report

StarHub's Antina 5G venture could still support a future merger.

The stalled Simba-M1 merger has banished hopes for near-term market tie-ups in Singapore’s telecommunications sector, leaving operators exposed to continued pricing pressure, according to an RHB report.

While this is a near-term negative for the sector, RHB said consolidation remains a key theme over the longer term.

RHB said renewed discussions between Keppel and StarHub could not be ruled out, noting that StarHub has repeatedly said it is open to mergers and acquisitions.

It added that StarHub and M1’s Antina joint venture, which supports 5G network sharing, is a possible basis for a future merger case.

Meanwhile, the mobile market remained under pressure during the March reporting season, with renewed price cuts and weaker roaming revenue amid cheaper roaming bundles and competition from travel e-SIMs.

“StarHub’s results missed estimates again, whilst Singtel’s earnings were in line, with stronger growth at NCS, Optus and associates offsetting a weaker domestic performance,” RHB said.

Mobile operators are also continuing to vie with virtual telcos for revenue share, with competition expected to remain tight in the second half of the year.

Follow the link for more news on

RHB

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

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