"We have joined hands with two handset manufacturers - Nokia and Mototrola to begin with. There are other companies who have offered handset at less that Rs 1,000 (a piece)," BSNL CMD A K Sinha told PTI.
Asked whether BSNL has ensured the quality of the handsets, he said, "We are still evaluating the option given by companies for sub Rs 1,000 handsets. We shall ensure the quality first and then these would be supplied to subscribers."
BSNL, which has over 2 crore (20 million) mobile subscribers in the country, is targeting smaller towns with a population base of 2,000 or 2,500.
Even the SIM costs have fallen to its lowest of just Rs 150, he said, adding this along with lower handset prices would go a long way in tapping rural markets.
On the subsidies offered on mobile connections like free talk time over a period of time, Sinha said BSNL has been coming out different schemes from time to time targeting both low as well high-end users.
Sinha also admitted that there was some problem in getting instant connection only in the Western region in states of Maharashtra, Madhya Pradesh, Chhattisgarh and Gujarat. Other than these states, SIMs were available on demand in rest of the country, Sinha said.