Alcatel-Lucent in Danger of Losing 3G Contract in USA

More woes for Alcatel-Lucent after a report in the Financial Times suggested that the company is in danger of seeing its 3G contract with the USA's AT&T shrink due to delivery delays. The newspaper says that following delays in supplying WCDMA kit by Alcatel-Lucent, part of their contract was transfered to Ericsson.

The original contract back in 2004 from AT&T allocated around US$900 million to Ericsson, $400 to Siemens and US$700 million to Alcatel-Lucent. Ericsson's share of the overall contract is now said to be in excess of 50%.

AT&T had even considered dropping Alcatel-Lucent completely, but has decided to keep the company on board - for now.

Alcatel-Lucent said "We continue to be a critical WCDMA supplier to AT&T. Our market share has remained relatively stable and we anticipate that if we can continue to meet our commitments we will maintain our market share."

Posted to the site on 5th October 2007