The Indian telecom sector has emerged as the fastest growing telecom market in the world. With more affordable services, increased penetration and a supportive government along with regular fall in tariffs in the sector has brought significant changes in number of consumers and usage of cellular telecom services. However, with galloping achievements, there are few challenges too, to be overcome by the Indian telecom industry to ride high on the next growth wave. Among the fastest growing sector of the economy the Indian telecom sector continued to maintain its growth during the year as one of the key sectors responsible for the economy’s impressive performance. The sector has been growing in the range of 20 to 40 percent during the last three years 2002-05. The telecom sector is getting more sops from the government, which will help it in growing faster more to align with objective of achieving the goal of reaching 250 million subscribers and a tele-density of 22 by 2007, reducing urban and rural disparities.