Simba Telecom has until 16 November to explain to the Infocomm Media Development Authority why it should not face fines, spectrum cuts or licence action over alleged unauthorised spectrum use, its Australian parent Tuas Limited told the ASX on Monday (26 October). IMDA has not made any findings.
What IMDA alleges
The Notice to Show Cause reached Simba at 7.30pm Sydney time on Friday (23 October). Tuas summarised six allegations:
- Simba ran dynamic spectrum sharing at more than 130 sites at times in 2022 and 2023, using its 2100 MHz spectrum for both 4G and 5G when it was licensed for 5G only.
- It used the 2340 to 2360 MHz band at more than 90 sites at times between 2023 and 2026 without authorisation.
- Both uses were intentional and approved by senior management.
- It deployed 5G indoor radio equipment at two locations in 2023 before IMDA authorised it on 14 November 2023.
- It did not fully comply with an IMDA production order, and the failure to produce documents was deliberate.
- IMDA has concerns about Simba’s governance and compliance culture.
The penalties on the table
IMDA has asked Simba to argue why it should not use its powers under the Telecommunications (Radio-communication) Regulations to suspend or cancel all or part of Simba’s spectrum rights, or impose a fine.
Under the Telecommunications Act, the regulator can also issue compliance orders, fine Simba, and in certain cases cancel, suspend or shorten its licence.
Each fine is capped at the higher of S$1 million or 10 per cent of the annual turnover of the part of Simba’s business covered by the spectrum right or licence, based on its latest audited accounts.
IMDA could also add licence conditions or issue directions to fix the governance gaps it has flagged.
What happens next
The notice states that IMDA has not decided whether to act or what action to take. Simba intends to respond before the 16 November deadline.
Tuas told the market it would not comment further while the matter is with the regulator.
