In this report, we look at the potential that lies ahead in services beyond plain voice and sms. We also look at developments in other geographies where 3G services have been launched, and analyse what lies ahead for the industry as it aims to capitalise on the promise of the domestic market place. We believe that the new wave Telecommunications market has a great growth trajectory but will also face major transformational challenges. We address some of these challenges and identify opportunities to capitalise on. The report also addresses some key challenges that are faced from direct tax and indirect tax view point and see how the same could be mitigated.