Singapore: Regulator Issues Show-Cause Notice to Simba over Spectrum Use on October 26, Parent Company Tuas Share Price Plunges
Singapore's Infocomm Media Development Authority on October 26 issued a show-cause notice to Tuas Limited, the parent company of telecommunications operator Simba, over alleged improper use of telecommunications spectrum. Tuas said the notice was served last Friday, and that the Infocomm Media Development Authority has not yet decided whether to take action against Simba. Simba was asked to respond to two allegations: first, that between 2022 and 2023, the company intermittently used dynamic spectrum sharing at about 133 sites, allowing the 2100 MHz band to be used for 4G and 5G coverage, although its approved use was limited to 5G; and second, that between 2023 and 2026, the company intermittently used the 2349 to 2360 MHz band at about 92 sites. The regulatory measures the Infocomm Media Development Authority is considering include suspending or cancelling Simba's spectrum rights, as well as imposing a fine, with a potential maximum fine of S$1 million or 10% of the relevant business's annual revenue. Simba plans to respond to the notice by November 16, and Tuas said it does not intend to comment further. Affected by the news, the share price of Australian-listed Tuas fell by as much as 40% on October 26, its largest drop since May 18. Citi analysts said they had previously assumed only a 10% probability of the licence being revoked in their target price calculation, that this probability was too low, that subsequent compliance and governance costs will most likely rise, and that the management team may also change; Citi's target price is A$2.95. Spectrum is a fundamental resource for mobile communications, and operators must use it within the approved scope; the regulator's issuance of a show-cause notice means Simba must provide an explanation within the prescribed period, and the final outcome will affect its operating prospects in the Singapore market.
Source: GSM · USA (original Chinese edition)
Photo: 新加坡滨海湾全景（资料图）。摄影：Dietmar Rabich，CC BY-SA 4.0，取自 Wikimedia Commons。Photo: Marina Bay panorama, Singapore (file photo). Credit: Dietmar Rabich, CC BY-SA 4.0, via Wikimedia Commons.
