Huawei takes No 3 spot in mobile telco gear market

* Ericsson Q1 mkt share 33 pct vs 32 pct yr ago-dell'Oro

* Nokia Siemens Q1 market share 21 pct vs 24 pct yr ago

* Huawei Q1 market share 15 pct vs 8 pct last year

* Alcatel-Lucent Q1 mkt share 14 pct vs 16 pct

By Tarmo Virki, European technology correspondent

HELSINKI, May 21 (Reuters) - China's Huawei Technologies [HWT.UL] took the No. 3 position in the ailing mobile network gear market in the first quarter, doubling its market share from a year ago and bypassing Alcatel-Lucent (ALUA.PA).

Sweden's Ericsson (ERICb.ST) expanded its lead as its closest rival Nokia Siemens Networks [NSN.UL] lost share, researcher dell'Oro said on Thursday.

The telecom equipment market has seen cut-throat competition for new business during the past few years, driven by Asian vendors, and the outlook remains tough.

Dell'Oro said in January-March the market contracted 9 percent from a year ago. Alcatel-Lucent has forecast the market to shrink 8-12 percent in 2009, while Nokia Siemens has said the market would fall some 10 percent.

The world's top mobile network equipment maker, Ericsson, increased its share slightly to 33 percent share of the market in January-March, while the market share of Nokia Siemens Networks dropped to 21 percent from 24 percent a year ago, dell'Oro said.

Huawei roughly doubled its market share to 15 percent, while Alcatel-Lucent's share fell to 14 percent from 16 percent.

(Reporting by Tarmo Virki; Editing Bernard Orr)