India operates one of the largest telecom network in Asia and 12th largest in the world. But in terms of telephone density India is much behind compared to even some of the other developing countries of the world. By the end of year 2002, it is expected that the tele-density could reach around only three per hundred population. Since the tele-density is low, there is great potential for the growth of telephone demand with the accelerated growth of economic activities. Involvement and participation of private sector is required along with the efforts of government to meet this demand.