French telecom equipment maker Alcatel will invest over RM200 million in the next five years to develop Malaysia as the hub for its third generation (3G) mobile business in Southeast Asia, reports said today.

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.

"That's a reflection of the fact that we are seeing a much stronger momentum in the telecom industry in Asia than the rest of the world."

Eco-centre

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.

"We intend to make Malaysia a kind of eco-centre for Southeast Asia for the whole field of mobile broadband development. It will be the centre of our mobile broadband activities for this region," he said.

Alcatel last year invested about RM10 million to set up a 3G reality centre for Southeast Asia in its plant in Penang.

"With the mobile penetration rate projected to reach 60 percent in the coming years from the current 38 percent, Malaysia is set to be one of the most important markets for Alcatel in Southeast Asia," Spithill was quoted as saying by The Star newspaper.

Ericsson's hub

With the creation of the new regional hub, he said the number of Alcatel mobile exports would double to 110 by the end of next year.

Alcatel is following in the steps of Swedish telecoms giant Ericsson, which in July launched an RM80 million regional expertise hub in the MSC to support 3G growth in the region.

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