Sony Ericsson announced that it is expanding its distribution network to include T-Mobile USA, MocoNews reports, after selling handsets exclusively on AT&T in the U.S. for years—and ">doing poorly as a result.

"This is good news for both parties," the report said. "Sony Ericsson has been affected by slower handset sales in part because of a weaker economy but also because its handset mix has lacked the variety of devices that other manufacturers have, such as full QWERTY keyboards and touchscreens." The deal also gives T-Mobile another supplier for its new 3G network.