Alcatel-Lucent is likely to lose a part of its contract with AT&T due to the delay in delivery of WCDMA 3G mobile telecom equipment.

Alcatel-Lucent is likely to lose a part of its contract with AT&T due to the delay in delivery of WCDMA 3G mobile telecom equipment.

In a $2 billion 3G infrastructure contract awarded by AT&T in 2004, Ericsson received orders worth approximately $900 million, Lucent (now Alcatel-Lucent) $700 million and Siemens $400 million. AT&T was earlier considering reducing the number of suppliers to two by dropping Alcatel-Lucent, but is now believed to have decided to retain all three. However, due to the delay in supplying equipment, Alcatel-Lucent’s share may decline and Ericsson’s go up.