APAC telecoms M&A leverage integrated services, market share expansion

The Asia-Pacific telecom mergers and acquisitions report from S&P Global Market Intelligence Kagan identified 56 major M&As that were completed in the region from 2020 to the first quarter of 2025. The majority of M&A activities were concentrated in IT solutions, mobile and fixed broadband sectors, reflecting the growing demand for integrated services. In addition, businesses consolidated to expand market presence, enhance service offerings and prepare for advanced technologies, including 5G.

Key M&A findings and analyses in the Asia-Pacific region:

• Singapore, New Zealand, mainland China and Australia have been the most active in M&A engagements for the past five years, with the majority of deals aimed at consolidating services and expanding business expertise. Telecom operators enhanced their capabilities in IT solutions, cloud services and digital infrastructure, reflecting the industry's shift to technology-driven services.
• Kagan analysis indicates a slowdown of M&A activities in 2020 and 2021 due to the COVID-19 pandemic. Telecom operators adopted a more cautious approach to asset sales and investment during this period. One example is the completion of the sale of mobile virtual network operator Amaysim to Australian mobile operator Optus Mobile Pty Ltd. in February 2021 for a deal value of $187.7 million.
• M&A activities rebounded in 2022, increasing to 22 telecom M&As during the year. Notable deals in 2022 were Japan's NTT Docomo Inc. and NTT Plala consolidation; M1 Ltd.and Shwe Byain Phyu Group group's joint venture purchase of Telenor Myanmar; XL Axiata's acquisition of a majority stake of Link Net's fixed broadband business in Indonesia; and Malaysia's Digi.com Bhd. and Celcom Axiata Bhd. merger.
• M&A activity in later years slowed down as a result of a transaction surge in 2022, with 12 deals in 2023 and eight deals in 2024. Meanwhile, the first quarter of 2025 had renewed M&A potential with five recorded deals.
• Telecoms engaged in M&A to acquire subscribers tend to improve their competitive position in the market, reflecting a subscriber base with high valuation, driving higher revenue and new business opportunities. Thailand's National Telecommunications PCL (NT), the new entity formed after the CAT Telecom and TOT merger, stood out with an estimated $5,533 value per subscriber. The merger aimed to centralize the telcos' business segments (mobile, fixed broadband, subsea cable and satellite) and expand operations to new sectors, such as health, transport and agriculture. Other M&A activities with high valuation were the Celcom-Digi merger with a $1,882 value per sub and Infratil's acquisition of One NZ with a $2,593 value per sub.
• M&A priorities also vary depending on the market's economy. In advanced markets, such as Japan, telcos sought to expand their business beyond telecommunications to other sectors such as retail, finance and banking to create new revenue streams. Telcos in emerging markets, such as Thailand, focused on service delivery and network capacity, emphasizing the core telecom infrastructure.

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Global Broadband & Pay TV is a regular feature from S&P Global Market Intelligence Kagan.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.