Tuas faces regulatory scrutiny over spectrum rules
Key points
- Singapore regulator IMDA issued a show cause notice to Tuas subsidiary Simba, threatening potential licence cancellation and fines for unauthorised spectrum usage.
- The company share price fell sharply following the regulatory development and ongoing compliance investigations.
- Management is reviewing the allegations and must provide a formal response to the regulator by Nov. 16.
Singapore's Infocomm Media Development Authority issued a show cause notice to Tuas (ASX:TUA) subsidiary Simba, demanding an explanation for multiple unauthorised spectrum access incidents.
The regulator stated that the subsidiary could face licence suspension, cancellation, or a fine equal to the higher of 10% of annual turnover or S$1 million.
The notice outlines unauthorised dynamic spectrum sharing across 133 sites between 2022 and 2023, alongside unauthorised band use at 92 sites from 2023 to 2026.
Regulators also alleged that the conduct was intentional, approved by senior management, and compounded by a failure to produce requested documents.
Simba must respond to the allegations by Nov. 16, while wider corporate governance deficiencies remain under review by the Infocomm Media Development Authority.
Following the announcement, the Tuas share price was down at $1.23.
The telecommunications provider previously operated as a spinout of TPG Telecom (ASX:TPG) to build market share in Singapore's mobile sector.
Corporate expansion efforts faced prior setbacks earlier in the year when a proposed acquisition of rival carrier M1 was terminated following regulatory reviews.
