Nokia and China Mobile have signed a one-year agreement to support the Chinese mobile operator's transition to a future network infrastructure with "seamless connectivity" to meet growing data traffic, according to a Nokia release.

Under the agreement, which Nokia said represents up to €1 billion in value, Nokia will provide China Mobile with technology solutions for a next-generation network tailored to the cloud and machine communications. Nokia will provide elements of its mobile radio access and core portfolio with fixed access, IP routing, optical transport and customer experience management.

The agreement envisions Nokia and China Mobile working closely to define the products and services that will enable the operator to tap new opportunities in vertical markets.

Supporting their collaboration, Nokia and China Mobile also signed a memorandum of understanding for research and testing of artificial intelligence (AI) and machine learning for next-generation networks, to be used for intelligent network optimization and radio resource management.

Mike Wang, President of Nokia Shanghai Bell, said, "This is a highly significant agreement with our longstanding partner that consolidates Nokia's position as a leading provider of next-generation technologies and services in China."

The agreement was signed in Berlin at the Sino-German Economic Forum by Li Huidi, a vice president at China Mobile, and Hans-Jürgen Bill, chairman of the board of Nokia Networks GmbH & Co KG in Germany.