SIMBA could face financial penalties, suspension or cancellation of its telecommunications licence over alleged unauthorised spectrum use, including conduct allegedly approved by senior management.
Its Australian parent company, Tuas, disclosed the allegations in an Australian Securities Exchange filing on Monday, 26 October.
SIMBA received a notice to show cause from the Infocomm Media Development Authority (IMDA) on 23 October. This requires it to explain why the regulator should not make certain findings or take the proposed actions against it.
Tuas stressed that IMDA has not reached a conclusion on whether action should be taken or what that action might involve.
Allegations Involve Spectrum Use, Equipment And Documents
Radio frequency spectrum carries wireless signals, including mobile calls and data. Operators receive authorisation to use particular frequency bands.
The notice sets out six allegations and concerns.
First, IMDA alleges that SIMBA used dynamic spectrum sharing at about 133 sites during intermittent periods in 2022 and 2023. This technology lets 4G and 5G share a frequency band.
SIMBA allegedly used the 2,100MHz band for both services despite being authorised to use it only for 5G.
Second, it allegedly used the 2,340MHz to 2,360MHz band without authorisation at about 92 sites during intermittent periods between 2023 and 2026.
The third allegation is that both types of spectrum use were intentional and approved by senior management.
Fourth, SIMBA allegedly installed indoor 5G radio access network equipment at two locations in 2023 before receiving approval on 14 November that year.
Fifth, IMDA alleges that SIMBA deliberately failed to provide all the documents required under a production order.
Finally, the regulator has raised concerns about SIMBA’s governance and compliance culture, which it considers should be addressed through additional licence obligations.
Potential Penalties Include Licence Cancellation
The possible financial penalties have a ceiling of S$1 million or 10% of the relevant business’s annual turnover, whichever is higher.
Other potential actions include suspending or cancelling spectrum rights, suspending or cancelling all or part of SIMBA’s telecommunications licence, and shortening its licence period.
IMDA could also impose additional regulatory requirements to address governance deficiencies and prevent similar conduct from recurring.
SIMBA Intends To Respond By 16 November
The investigation became public in May, when IMDA paused its assessment of SIMBA’s proposed S$1.43 billion acquisition of M1. That deal was subsequently terminated.
Tuas said SIMBA intends to respond to the notice by the 16 November deadline. It declined further comment while the regulator considers the matter, saying no findings had been made or confirmed.
