French telecoms equipment maker Alcatel said on Thursday it saw bright growth prospects in South East Asia and named Malaysia as its regional launch pad for its third-generation (3G) mobile communications products. Alcatel, one of the world’s biggest mobile infrastructure vendors, said growth opportunities in South East Asia were still strong compared to stagnating markets in developed countries.

Insight

Alcatel has rightly identified a market opportunity in Malaysia. There is strong government backing for new technology (witness the infamous Multimedia Super Corridor project) and a fierce rivalry with neighbouring Singapore to appear the most advanced market in the region. The government has also created favourable conditions by issuing 3G licenses at a fraction of the cost levied by Western administrations.

Much will depend on the turbulent macro-economic conditions in the country, but erratic governance permitting, there is no reason Malaysia can’t develop a mobile market comparable to that of South Korea or Japan. The Philippines, where revenues from data services look set to top 50% of total operator income, provide further evidence of the potential.