Chinese telecommunications company ZTE will establish a joint program with the Dutch service provider KPN Mobile.
The deal was announced Wednesday during the annual Mobile World Congress in Barcelona.
The new deal will focus on the development of both FDD and TDD versions of LTE, which will spearhead the way for the next generation of 4G mobile broadband.
ZTE is already pioneering the LTE technology, and during the MWC displayed the effectiveness of the technology in data transfer and the capability of the transmission of high definition video.
"We see data as being huge in the future and we are trailing both variants of LTE now in order to be fully prepared for when the new technology arrives. We want to be fully prepared for the future," said KPN Mobile International CTO Erick Hoving.
The program follows earlier deals in which ZTE and KNP, the Netherlands' leading telecommunications and ICT service provider, have cooperated on network access technology.