He sees no reasons for the merged Simba-M1 entity to be aggressive on pricing, “otherwise they will hurt themselves”. Meanwhile, RHB expects the merged entity to continue driving market share with discounted offerings in the medium term, with prices rising gradually as network upgrades take effect.
Maybank Securities and RHB Bank Singapore (RHB) have maintained their “neutral” stance on Singapore telcos after Simba Telecom’s announcement to acquire M1’s telco business.
Analysts say the deal could help rationalise competition in a market long locked in price wars. “The real reason for the competition was the incumbents’ response [to Simba’s entry in 2020] by offering cheaper packages through digital brands as well as through mobile virtual network operators (MVNOs). As MVNO contracts are typically three to five years with limited sales channel reach, we see potential for competition to start subsiding over the coming years with consolidation,” wrote Maybank analyst Hussaini Saifee in his Aug 11 note.
