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Telecoms network firm Ericsson on Sunday signed a framework agreement to provide US$1 billion worth of networking equipment to China Mobile Communications Corp.

Ericsson Chief Executive Carl-Henric Svanberg signed the deal in Stockholm during a state visit by China's President Hu Jintao, the first by a Chinese leader to Sweden.

"The most important thing was that we signed a contract today for deliveries of $1 billion worth of telecoms equipment. We have a third of the telecom market in China so this was another significant step in that development," Svanberg told reporters at the ceremony.

Ericsson said the new framework agreement would see it supply core and radio network equipment, along with related technical support and services, to China Mobile as it expands GSM coverage in 19 regions of China.

The Swedish company said deliveries had already started.