Simba IMDA unauthorised spectrum use investigation, Digi Mart USA News (Singapore): Simba customers have been told that their services, plans and wallet balances would remain unaffected while authorities investigate the telco. However, things could change if allegations of unauthorised spectrum use are found to be true.
The telco could face financial penalties, or the suspension or cancellation of relevant licences, if the regulator determines that it breached regulatory requirements. Experts said cancelling Simba’s licence would be unlikely, with one suggesting that a financial penalty or changes to its licence conditions were more probable.
While a fine would have no immediate impact on services, restrictions on spectrum use could affect network capacity and service quality.
The Infocomm Media Development Authority (IMDA) has issued Simba, one of the four major telcos in Singapore, a notice setting out six allegations. Besides alleged unauthorised spectrum use, other points mentioned include breaches of telecommunication regulations and concerns about the company’s governance and compliance practices.
Simba said customers’ services, plans and wallet balances are “100 per cent unaffected” while the investigations are ongoing. Parent company Tuas said on Oct 26 that IMDA has not reached any conclusions on whether regulatory action should be taken against Simba or what form such action might take.
Mobile operators are assigned specific frequency bands, and using spectrum beyond those assigned bands without IMDA approval would fall foul of the rules. Spectrum is a limited resource and is essential for mobile network operators, which use it to carry voice and data traffic, said Ms Asha Hemrajani, a senior fellow at the S Rajaratnam School of International Studies.
IMDA alleged that Simba deployed dynamic spectrum sharing technology at about 133 sites for intermittent periods in 2022 and 2023. This allowed the telco to use the 2100 megahertz (MHz) frequency band for both 4G and 5G services, even though it was authorised to use the band only for 5G.
Dynamic spectrum sharing is a technology that allows different generations of mobile networks, such as 4G and 5G, to share the same frequency band.
IMDA also alleged that Simba used spectrum in the 2340MHz to 2360MHz band at about 92 sites for intermittent periods between 2023 and 2026, despite not having authorisation to do so. The regulator alleged that both instances of unauthorised spectrum use were intentional and approved by Simba’s senior management.
IMDA also alleged that Simba deployed 5G indoor radio access network equipment at two locations before being authorised.
The regulator also accused Simba of not fully complying with an order to produce documents, and that its failure to do so was deliberate and intentional. A cancellation of Simba’s licence would be an unprecedented step for a major telco in Singapore, according to the experts.
Triangle Legal director Sean Lee said: “For IMDA to cancel a licence would be unheard of. In practical terms, it would cause a lot of problems for telecom users.” He added: “In all likelihood, I think what would happen is a fine or a modification of the licence conditions, for example, restrictions on the use of certain spectrum, or heavier penalties if there is another breach.”
He noted that Simba, Singtel, StarHub and M1 are Singapore’s four main mobile network operators, which operate their own networks and hold spectrum rights allocated by IMDA. Other cases involving some of Simba’s competitors have also led to financial penalties, he said.
Mr Hussaini Saifee, head of ASEAN telecom media and technology at Maybank Securities, said he had not come across a telco being ordered to shut its network because of a spectrum breach. Ms Hemrajani also said the alleged spectrum misuse was serious but, in her view, not serious enough on its own to warrant cancelling Simba’s licence.
