Tuas receives IMDA Show Cause Notice for Simba Telecom
Tuas Limited (ASX: TUA) advised on 26 October 2026 that its wholly owned subsidiary Simba Telecom Pte Ltd (Simba) received a Notice to Show Cause from the Infocomm Media Development Authority of Singapore (IMDA) at about 7:30pm Sydney time on Friday 23 October 2026. The notice asks why the IMDA should not make certain findings against Simba.
The Show Cause Notice confirms that the IMDA has not yet reached any conclusion on whether action should be taken against Simba, or, if so, the nature of such action. For investors, the key points are the stage of the process, the potential regulatory actions the IMDA has identified, and the response deadline of 16 November 2026.
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Matters Simba has been asked to address
The IMDA has requested that Simba respond to a set of allegations and matters, summarised in the announcement. These are allegations only, and no findings have been made or confirmed.
The spectrum allegations are not new to the market, as the IMDA suspended its review of the proposed M1 acquisition in May 2026 over an unresolved compliance question involving Simba’s use of radio frequency bands.
Six allegations set out in the notice
The allegations and matters to which Simba has been requested to respond are, in summary:
- That Simba deployed dynamic spectrum sharing to about 133 Sites for intermittent periods in 2022 and 2023, allowing the use of 2100 MHz band spectrum for both 4G and 5G, when Simba was only authorised to use that spectrum for 5G.
- That Simba used 2340-2360 MHz band spectrum at about 92 sites for intermittent periods between 2023 and 2026 when it did not have authorisation to do so.
- That the deployment of dynamic spectrum sharing on the 2100 MHz band and the use of 2340-2360 MHz spectrum was intentional and approved by Simba senior management.
- That Simba deployed 5G Indoor radio access network equipment at two locations during 2023, prior to IMDA’s authorisation to do so, which was not given until 14 November 2023.
- That Simba did not comply fully with a production order and breached the production order issued by the IMDA, and that the failure to produce documents was deliberate and intentional.
- That the IMDA has concerns about deficiencies in Simba’s governance and compliance culture, which the IMDA considers should require further regulatory obligations in Simba’s facilities based operator licence to address.
Potential regulatory actions and what they mean for investors
The IMDA has identified potential regulatory actions and asked Simba to make representations as to why they should not be taken. None has been decided.
How a Show Cause Notice works
A Show Cause Notice is a regulatory step that invites a company to explain, before any decision is made, why certain action should not be taken against it. It is part of a process rather than a finding.
For the investment case, the points to watch are Simba’s response and the IMDA’s subsequent view. The announcement states that the IMDA has not yet reached a conclusion.
Potential actions identified by the IMDA
The table below summarises the actions the IMDA has identified in the Show Cause Notice.
| Legislative basis | Potential action | Penalty cap | Licence or spectrum effect |
|---|---|---|---|
| Regulation 16(2) of the Telecommunications (Radio-communication) Regulations | Either or both of: suspend or cancel the grant of the spectrum right or part thereof; and a financial penalty | Not exceeding the higher of 10% of annual turnover of that part of Simba’s business in respect of which the spectrum right is granted, or $1 million | Suspension or cancellation of the spectrum right or part thereof |
| Section 10 of the Telecommunications Act | Written order to secure compliance with a licence condition; financial penalty; and in certain circumstances, cancel, suspend or reduce the period of the licence or part thereof | Not exceeding the higher of 10% of annual turnover of that part of Simba’s business in respect of which the licence is granted, or $1 million | In certain circumstances, cancellation or suspension of the licence or part thereof, or a reduced licence period |
| Section 9 (modified licence conditions) or section 31 (directions) of the Telecommunications Act | Further regulatory obligations to address governance deficiencies and prevent similar conduct from recurring | n/a | Modified licence conditions or directions |
Where a penalty cap applies, the announcement describes it as follows:
- Not exceeding the higher of 10% of annual turnover of that part of Simba’s business in respect of which the spectrum right or licence is granted, as ascertained from the latest audited accounts.
- Or $1 million, whichever is higher.
Any penalty would be measured against a business that is scaling quickly, with Tuas’s H1 FY26 results showing revenue growth of 26% to S$91.9 million and a mobile subscriber base above 1.4 million.
What happens next for Tuas and Simba
The announcement states one dated step:
- Simba’s response: Simba intends to respond to the Show Cause Notice, which response is required by 16 November 2026.
The matter remains under consideration by the regulator, and no findings have been made or confirmed. Tuas does not intend to provide further comment on the matters raised in the announcement, which was authorised by the Board of Tuas Limited.
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