French telecommunications equipment maker Alcatel today said it will invest RM200 million in its Malaysian operations over the next four years to tap growth in new high-speed third-generation (3G) mobile services.

Alcatel sees good prospects in Malaysia and is now helping state-owned Telekom Malaysia to develop and introduce 3G services in the country by next year, said its Asia-Pacific president Christian Reinaudo.

"The Malaysian telecommunications industry is likely to grow at a faster pace this year in tandem with the significant economic growth for the whole Asian region," Reinaudo was quoted as saying by Bernama news agency.

Telekom and mobile operator Maxis are the only two companies that have been awarded licences for 3G mobile networks in Malaysia. The two are expected to spend RM7.5 billion over the next decade to roll out 3G services.

Malaysia's mobile phone penetration rate is more than 30 percent and the government hopes to speed up the official target of 38 percent by 2005 with the 3G networks which allow speedy access to data and video through the Internet.

Reinaudo said a company from China would supply the handsets to Telekom and stressed that China would emerge as an important strategic partner for the Asian region due to its ability to produce low-cost telecommunications products.

Alcatel's regional HQ is based in Shanghai, where its products are shipped to Japan, South Korea and Southeast Asia. It employs some 10,000 staff in Asia, which accounts for some 18 percent of its global revenue, he said. - AFP