Alcatel eyes Telekom supply contract


  • Business
  • Wednesday, 29 Jan 2003

BY YAP LIH HUEY in Penang

FRANCE-BASED network systems manufacturer Alcatel is eyeing an annual contract to supply broadband equipment to Telekom Malaysia Bhd. It is optimistic of its prospects due to Telekom's expected massive projects in the course of this year, Alcatel Network Systems (Malaysia) Sdn Bhd country senior officer, Malaysia, John Quaeyhaegens said. 

The company, he added, had submitted its proposal to the telco late last year and expected the results to be announced by first half of this year. 

However, Alcatel would be facing fierce competition as 15 to 20 companies would be bidding for the same project, he told StarBiz after a media briefing on Alcatel's progress in Malaysia yesterday. 

The deadline for submission of proposals is Feb 19. 

Quaeyhaegens said the value of the project has not been determined yet, adding that it would depend on the scale of Telekom's projects. 

“Broadband penetration is still low in this country and it is a growth area. The younger generation would be the key driver for broadband adoption and it would be able to chart exponential growth this year,” he added. 

Once completed, the project would be Telekom's service and product offering to the consumer and corporate markets.  

Telekom is Alcatel's largest client, contributing 25% to its market share in the local fixed network systems market.  

On a different note, he Quaeyhaegens said he did not see the downgrading of Alcatel's credit rating by rating agencies like Standard & Poor and Moody's affecting its profitability.  

“Alcatel is able to sustain during the slow times because it has large cash reserve, are doing businesses with solid companies and has widespread business opportunities in various segment of the mobile and network markets.”  

Alcatel recorded sales of Euro25bil in 2001 and operates in 130 countries. 

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