Handset manufacturer Sony Ericsson said Monday that it has signed licensing and ODM (Original Developer Manufacturer) agreements with smaller rival, Sagem, for the building of entry level mobile phones.

Under the agreement, French vendor Sagem will licence certain hardware and software technologies to Sony Ericsson.

Sagem will also provide Sony Ericsson with a number of Sony Ericsson branded mobile phones.

“We chose Sagem Communication because their software platforms are mature, scaleable and flexible. In addition we were impressed with the quality and performance of their phones, which have been developed by a skilled workforce,” said Howard Lewis, vice president and head of product business unit entry at Sony Ericsson.

Sony Ericsson will establish a development unit dedicated to entry level mobile phones, in the vicinity of Sagem’s premises in Cergy, France.