Can the M1-Simba merger rewrite the telco playbook?

The investment-agility paradox

Singapore’s telcos face a classic tension: should they invest heavily to save in the long run, or save now to invest later? The M1-Simba merger illustrates a challenger’s attempt to bridge both worlds.

M1 brings a history of strategic investment in its 5G rollout, enterprise-grade cloud, and advanced bundling. Simba contributes lean operations, digital-first agility, and cost discipline. Combined, they could execute high-impact yet nimble plays, balancing capital-intensive deployment with market responsiveness.

Singapore’s mobile market is mature, with penetration exceeding 150%. Growth through new subscribers alone is nearly impossible. The options are stark:

1. Invest aggressively in new capabilities such as artificial intelligence (AI), 5G, and the cloud, and risk overspending.
2. Stay lean, protect margins, and risk falling behind technologically.

By 2025, a third of network traffic will be AI-driven, embedding AI in most telecom applications and forcing operators to rethink their infrastructure and monetisation strategies.

The M1-Simba tie-up is a live experiment: the strategic spender meets the agile saver. If they can balance this paradox, they may capture market gaps that neither could alone.

Here’s what the deal could mean for the merged telco and its customers:

1. AI-enhanced mass-market bundling
The merged telco can deploy AI-driven personalisation in its consumer plans, blending M1’s bundling expertise with Simba’s reputation for simple pricing. Customers could receive tailored plan recommendations, while add-ons like streaming, security, or app subscriptions drive new revenue without heavy upfront investment.

2. 5G and IoT services for SMBs
Singapore’s small and medium-sized businesses (SMB)s are a fast-growing but underserved market. Offering plug-and-play 5G and internet-of-things (IoT) bundles for companies without in-house IT could be a sweet spot. Simba’s agility would ensure a quick rollout, while M1’s assets provide scale, aligning capital with new revenue streams.

3. Differentiated 5G deployment
M1’s existing 5G network build positions the new entity to focus resources on areas of highest demand, rather than on blanket nationwide spending. With AI-driven traffic expected to form one-third of global volumes by 2025, according to Omdia, the combined entity can execute a precision rollout, that is, deploying capital only where it maximises return. This contrasts with traditional “build it everywhere” strategies that lock in sunk costs.

Execution risks

Ambition aside, execution could derail the strategy. Integrating IT systems, billing platforms, and customer service operations is notoriously complex. A misstep could erode the customer experience—a particular danger when Simba’s appeal has been built on simplicity and clarity.

Brand identity is another potential fault line. Simba and M1 appeal to different segments, and poor alignment could confuse customers or dilute loyalty.

Capital discipline remains the toughest challenge. Overspending on future bets without near-term monetisation could undermine investor confidence. Meanwhile, Singtel and StarHub are unlikely to stand idle; their stronger balance sheets and established enterprise ties mean they can blunt the new entity's first moves.

Ultimately, the merged company must prove it can balance strategic investment with operational agility, walking a tightrope that has tripped up many telco experiments before.

The size of the prize

If executed well, the rewards are significant. Omdia forecasts that telco AI revenue from enterprise customers will grow at a 65% compound annual growth rate through 2030, with today’s $4bn market expanding into tens of billions. This includes high-speed connectivity, hosted AI platforms, and managed services—adjacent spaces where the new entity could compete.

On the SMB side, Canalys reports that 76% of SMBs across ASEAN are increasing their investment in digital tools. With SMBs making up over 95% of enterprises in Singapore, even modest market share capture could yield significant incremental revenue.

The consumer business has an upside, too. Omdia’s research shows that AI-enhanced bundling can lift average revenue per user by 10–15% in mature markets. For the combined company's three million-plus subscribers, even a conservative uptake could generate $150m to $200m annually in incremental value – enough to justify disciplined 5G and AI bets.

Together, these numbers show the merger isn’t just about fighting for scraps in a saturated market. The real prize lies in converting investment agility into measurable returns across both consumer and enterprise segments.

The APAC telco playbook

For telecom executives across the Asia-Pacific region, this merger offers three clear mandates:

1. Audit your tech debt-to-agility balance.
2. Prioritise capabilities that balance control with cost.
3. Pilot use cases that combine infrastructure strength with digital agility.

The M1-Simba story demonstrates that opposites can indeed create a competitive advantage if they integrate thoughtfully rather than just assimilate. Beyond the numbers, this merger could serve as a blueprint for telcos across the region facing the same investment-agility dilemma, showing that durable advantage comes not from extremes, but from balance.

Edwin Lin is principal consultant at Omdia, part of Informa TechTarget