UPDATE 1-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 (Adds details, quotes)

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 market 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.

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.