Patricia Russo, the chief executive of Alcatel-Lucent, is under mounting pressure to demonstrate that last year’s $12 billion merger of Alcatel, of France, and Lucent, of the US, was not a strategic blunder and has until the end of the month to unveil a rescue plan for the beleaguered telecoms equipment maker.

This week, on the back of yet more bad financial news, the board of Alcatel-Lucent was forced to reaffirm publicly its support for Ms Russo after reports emerged in the French press that her position was in jeopardy.

The board called reports that her job was in danger "erroneous".

It said in a statement: "While clearly disappointed in the most recent changes in the company's outlook, the board supports Pat Russo and the leadership team, and the efforts they are making to adapt the company's plans in light of this year's developments.”

Speculation over Ms Russo's future had been ramped up after Alcatel-Lucent gave warning on revenues for the third time in less than a year.

The alert confirmed fears that the deal that created the company had failed to deliver the cost savings and other benefits that had been expected.

The warning underscored widespread misgivings over the wisdom of the deal.

The merger of Alcatel and Lucent was designed to counter falling profits and intensifying competition throughout the telecoms equipment sector.

Already Lucent, under Ms Russo’s stewardship, had embarked on a massive restructuring plan.

Similar patterns have been seen across the sector.

Last year Nokia, the mobile giant, and Siemens, the German conglomerate, combined their telecom-equipment divisions in a joint venture, and the rival Verizon Communications joined with MCI.

At the same time Asia’s young turks, groups such as Huawei, of China, have entered the scene and piled pressure on prices.

However, as reports this morning again highlighted, rather than reaping synergy benefits, the combined Alcatel-Lucent business has been forced to plough much of the €600 million (£417 million) it saved in its first year into price cuts for customers to safeguard its market share.

In the second quarter Alcatel-Lucent revealed that margins had slumped 5 per cent and posted a loss — this as the company cut its workforce and streamlined its product portfolio.

In France, unions were claiming only months after the merger, which completed in January, that the management had turned the process into "a nightmare”.

Since the merger, the group has lost about a third of its market value.

Amid this, Alcatel-Lucent has trumpeted significant contract wins — but often in emerging markets, which undoubtedly have potential but where low costs will place yet more pressure on markets.

In May it announced a $340 million (£167 million) contract to expand China Mobile's wireless network.

In India it unveiled a similar $400 million agreement with Reliance Communications.

So far Ms Russo has settled for pleading to investors for patience, pointing out that the company is only nine months into a three-year integration scheme.

But time looks to be running out: Ms Russo now has until October 30 — the day before third-quarter figures are due — to formulate a fresh turnaround plan.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax