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Telecom group decides to invest in Australia

Taiwan Cellular Corp's (台灣大哥大) parent group plans to invest NT$2.8 billion (A$15 million) to establish a research and development center in Sydney, Australia, a company official said yesterday.

The new venture, named Taiwan Telecom Australia, is scheduled to be set up by the end of the third quarter and will focus on broadband data services and the development of next-generation wireless products.

"We inked the plan in mid-August with the Australian Minister for Industry, Tourism and Resources," Lai Yi-hsuan (賴怡璇), a manager at Taiwan Telecom said yesterday.

The Taiwan Telecom Group -- also home to Taiwan Fixed Network (台灣固網) -- hopes the center will provide telecom consulting services to its subsidiaries and also plans to offer case-by-case services to other telecom players in the future.

Total capital investment of the R&D center is about US$10 million, of which Taiwan Cellular controls a 60 percent stake and Taiwan Fixed Network holds the remaining 40 percent, Lai said.

Australian Minister Ian Macfarlane said in a statement Monday that "this decision reinforces Australia's position internationally and within the Asia Pacific as a highly competitive investment destination."

Looking for specialists

"It will be a particular boost to R&D in telecom industry, creating job opportunities for about 30 information technology specialists in the first year."

New hires will be recruited in Australia, while a handful of executives will be assigned from Taiwan. Australia's international environment and advanced technology were the main draw for the Taiwan-based telecom giant.

According to Anothony Knight, president of both Taiwan Telecom Australia and Taiwan Fixed Network, a strong talent pool, technology innovations as well as political and economic stability made Australia the logical choice.

Meanwhile, one industry watcher said the difficulty in finding good local staff may be the reason driving Taiwan Telecom out.

"Taiwan has reported a shortage of information-technology talent for years, especially in the telecom sector," said Joseph Yeh (葉永泰), research director at Market Intelligence Center.

The government only opened up the telecom market five years ago and therefore industry professionals don't have much experience, he said.

"Research and development doesn't only apply to technology, but also business models that require a more open and international environment to grow," Yeh said.

Government policy with regards to hiring talent from overseas is still very restrictive, more or less forcing companies to go abroad to establish research centers.
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