Alcatel to invest $53m in Malaysia

Alcatel to invest $53m in Malaysia

KUALA LUMPUR: French telecom equipment maker Alcatel will invest over 200 million ringgit (US$53 million) in the next five years to develop Malaysia as the hub for its third generation (3G) mobile business in Southeast Asia, reports said on Thursday.

Ron Spithill, executive vice president and Asia Pacific president, was quoted by Bernama news agency as saying that Alcatel would develop 3G expertise and new mobile applications with local partners.

"It was only three years ago that the Asia Pacific region only represented eight percent of the company's total business. This year, it is almost 20 percent," he said.

Spithill said Malaysia was chosen because of the "strong momentum" sparked by the creation of the Multimedia Super Corridor (MSC) for hi-tech firms and strong government support.

Malaysia was also among the first in the region to have issued 3G licenses, he noted.

Alcatel last year invested about 10 million ringgit to set up a 3G reality center for Southeast Asia in its plant in northern Penang state.

Malaysia's two 3G license holders -- state-owned Telekom Malaysia and Maxis Communications -- are expected to roll out services from 2004.--AFP