Amid slump, Alcatel-Lucent insists relationship with AT&T 'solid'

Alcatel-Lucent, already plagued by lower-than-expected sales, sought  to reassure investors that its supply agreement with AT&T remains solid, an Associated Press report said.

The Associated Press report said shares of Alcatel-Lucent closed down $0.16, or nearly 2%, to $10.07 last week after the Financial Times reported that the equipment maker would not be supplying as much equipment for AT&T's mobile phone network upgrade as initially expected. The story cited unnamed sources.

Michael Coe, a spokesman for San Antonio-based AT&T, declined to comment on the report, the report said.

But Alcatel-Lucent put out a statement saying its market share has remained relatively stable, and it will continue to work to meet its supply commitments, the report added.

Paris-based Alcatel-Lucent, Swedish group Ericsson and Germany-based Siemens were awarded a $2 billion contract by AT&T in 2004 to supply infrastructure for AT&T's new faster mobile network.

Alcatel-Lucent lowered revenue growth projections for the year in September, and its chief executive is under heavy pressure to accelerate the post-merger restructuring of the company, the report said.

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