Alcatel-Lucent announced that it has been awarded a $1 billion framework agreement to provide mobile communication equipment and services to China Mobile. The deal was secured through the company’s Chinese subsidiary, Alcatel Shanghai Bell.

Under the terms of the deal, Alcatel-Lucent will provide China Mobile with mobile core network solutions, wireless network solutions, TD-SCDMA equipment, applications, transmission and IP router equipment and the related services.

“We are delighted to be selected to continue providing solutions and services to China Mobile. China Mobile is one of our company’s main strategic cooperation partners,” Olivia Qiu, president of Alcatel Shanghai Bell, said in a statement. “The strategic frame agreement with China Mobile reinforces Alcatel-Lucent’s position as a trusted partner, as China Mobile relies upon our network solutions and services to meet their growing demand for mobile and now fixed services and in advancing China’s telecommunication industry.”

In related news, the South China Morning Post reported that China Mobile has delayed expansion of its TD-SCDMA network until after the Olympics. But following the Olypmics, the carrier is expected to aggressively expand the 3G network beyond the 10 cities originally planned for deployment.

China Mobile has already opened TD-SCDMA “experience” shops in eight major cities where it is testing the 3G network, allowing the public to try out new handsets and services. The initial launch included availability of 60,000 dual-mode TD-SCDMA/GSM handsets and 15,000 data cards from Samsung, LG, Hisense, Lenovo, ZTE and Postcom.