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Circles Life’s parent firm sues M1 over virtual network contract
Liberty Wireless, the parent company of Circles Life, has filed a lawsuit against M1, which is indirectly owned by Keppel, over issues related to their mobile virtual network contract.
The dispute centers on a contract signed in May 2019, with Liberty Wireless claiming that M1 refused to negotiate changes to address regulatory updates introduced by Singapore’s Infocomm Media Development Authority in January 2020.
Liberty Wireless is seeking a court order to compel M1 to enter negotiations within 14 days and alleges that the 2019 contract may contain errors that need correction.
Keppel said that M1 denies the allegations and plans to defend its position.
Keppel also said the legal proceedings are not expected to delay the ongoing sale of M1 to Simba Telecom, which is still subject to regulatory approval and other conditions.
Circles Life said it could not comment further as the case is before the courts.
🔗 Source: CNA
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Implications, context, and why it matters.
Liberty’s legal case
- IMDA’s 2020 Framework for the Wholesale of Mobile Services bars host mobile network operators that provide access to third‑party brands from unfair traffic control and requires six months’ notice for unilateral termination, with carve‑outs for payment default, breach, or activity that could cause imminent physical harm to the operator 1.
- Under the Infocomm Media Development Authority (IMDA) competition code, dominant licensees that hold significant market power must file Reference Interconnection Offers for approval, with pricing reviewed under it 2. Liberty Wireless bases its claim on the 2020 Wholesale Framework that arrived after the 2019 contract 1.
- An August DBS Bank analyst report put Circles.Life, the largest MVNO on M1’s network, at up to 80% of M1’s net profit and at 15% to 25% of service revenue 1. The lawsuit lands amid a proposed S$1.43 billion sale of M1’s telco business to Simba Telecom that awaits IMDA approval, and Keppel expects no delay to completion 1.
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