Liberty Wireless Files Lawsuit Against M1 Over Network Dispute

Liberty Wireless, the parent company of Circles.Life, has initiated legal action against M1, an indirect subsidiary of Keppel Corporation, regarding mobile virtual network arrangements. The lawsuit, filed on October 13, 2023, revolves around a contract established on May 22, 2019, between Liberty Wireless and M1. Liberty Wireless claims that M1 has “wrongfully refused to enter into good faith negotiations” to amend the contract in light of evolving regulatory requirements.

According to a statement from Keppel, the dispute stems from the implications of the Framework for the Wholesale of Mobile Services issued by the Infocomm Media Development Authority (IMDA) in January 2020. Liberty Wireless asserts that adjustments to the contract are “reasonably necessary” to address these regulatory changes. The company seeks a court declaration compelling M1 to engage in negotiations within a 14-day timeframe.

Liberty Wireless has also raised concerns about potential errors in the 2019 contract and intends to rectify these issues if necessary. In response, M1 has stated it finds the allegations without merit and plans to defend its position vigorously.

Keppel Corporation indicated that the ongoing lawsuit is not expected to hinder the planned acquisition of M1 by Simba Telecom. On August 11, 2023, Keppel’s wholly owned subsidiary, Keppel Konnect, entered into a sale and purchase agreement with Simba Telecom as the purchaser and Tuas Limited as guarantor for the sale of M1’s entire issued share capital. The proposed transaction is currently awaiting the satisfaction or waiver of various conditions, including regulatory approval from the IMDA.

Keppel expressed confidence that the legal proceedings will not adversely affect the completion of the transaction. A spokesperson for Circles.Life acknowledged the ongoing legal matter but emphasized that it would not disrupt day-to-day operations or impact its customers and partners.

As the case unfolds, both companies are preparing for the next steps, with M1 gearing up to defend its position and Liberty Wireless advocating for necessary amendments to their agreement.