Potential StarHub-M1 merger could create stronger rival to Singtel but reduce consumer perks, say analysts
StarHub and Keppel have confirmed they are in talks over a potential deal, months after a proposed acquisition of M1 by rival Simba fell through.
A potential merger between StarHub and M1 could solidify a formidable competitor to the current market leader, Singtel, reshaping Singapore's telecommunications industry, according to analysts. However, they caution that such a merger might reduce consumer benefits by diminishing the fierce price competition they currently experience.
StarHub and Keppel, M1's parent company, confirmed their talks about the potential deal, months after Simba's bid for M1 fell through. Keppel's CEO notes that the merger would bolster StarHub's customer base and provide substantial economies of scale. Tech observers and university lecturers agree that this combined entity would become the dominant player in both post-paid mobile and fixed broadband markets in Singapore.
Sharing network infrastructure and reducing overlapping costs would make the merged company a stronger competitor against Singtel. However, analysts warn that fewer operators could result in less competition, and ultimately, higher prices for consumers. Smaller players like Simba could still impact pricing levels depending on their strategies.
Despite the potential consolidation, the StarHub-M1 merger could still foster competition if smaller budget brands can easily enter the market.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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