Nokia, the world's largest handset maker, said it plans to further push into India by expanding a pilot program that allows poor rural buyers the option to pay weekly installments.

The Finnish company is focusing on India, where more than 10 million subscribers are being added every month, at a time when global handset sales continue to sink as recession-hit consumers in developed markets rein in spending.

"We need to make mobility more accessible in India," said Olli-Pekka Kallsvuo, Nokia's chief executive. "India is our second-largest market. We aim to remove the affordability barrier."

Nokia's Indian unit started selling handsets in two rural states under a microfinancing plan that allowed buyers to pay weekly installments -- 100 rupees ($2) over 25 weeks.

The company plans to rollout the pilot program in 12 additional states, covering more than 2,500 villages.

Nokia executives said people could use phones more as they cut spending on travel. "We don't think the market will slow down for mobility in rural India," said D. Sivakumar, a managing director at Nokia's Indian unit.

Nokia expects about 500 million mobile phone users in India by 2010, up from 427 million now. It already has more than half the share of India's mobile handset market.

In July, the company cut its forecast for profit margins and market share, raising concerns its number one position in the global handset market might be under threat.

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