Alcatel-Lucent claims ‘significant’ portion of AT&T 3G buildout: Firm blasts report that it has lost share to Ericsson

It’s been a tough week for Alcatel-Lucent. Twice this week the company has been compelled to issue formal statements; first addressing speculation about CEO Pat Russo’s future at the company and today addressing a reported diminished interest in AT&T Mobility’s 3G buildout.
A Financial Times story published today reported that Alcatel-Lucent could be losing some of its 3G business with the No. 1 U.S. carrier to L.M. Ericsson. The paper, citing unnamed sources close to the situation, reported that Alcatel-Lucent had delayed in delivering W-CDMA equipment to AT&T Mobility, prompting Ericsson to increase its share of the contract.
“We continue to be a critical W-CDMA supplier to AT&T,” the company said in a statement.
“Our market share has remained relatively stable and we continue to work to meet our commitments to maintain our market share. To speculate otherwise is both inaccurate and misleading,” the statement continued. “We have signed a significant part of the W-CDMA contracts awarded since the beginning of 2007.”
The Financial Times reported that Ericsson’s share of the contract would now exceed 50% of the entire project. The original $2 billion contract in 2004 awarded about $900 million to Ericsson, $700 to Lucent and $400 million to Siemens, it reported.
Alcatel-Lucent has struggled of late on Wall Street, having sent three profit warnings this year that downgraded revenue forecasts, and this summer announced the departure of two senior executives. Most of the remaining top leadership comes from Alcatel, with the exception of former Lucent CEO Pat Russo, who is now head of the combined company.
Since marking a high of more than $15 per share at the beginning of 2007, Alcatel-Lucent shares sunk below $9 last month and dropped a little more than 1% on today’s news to $10.10.