The government plans to spend Rs 171.86 billion on the telecom sector in fiscal year 2005-06. Of this, a large chunk will be spent on providing phone connections, largely cellular. As per the budget, BSNL will add 7.5 million lines this fiscal year, of which 6.5 million will be cellular and 1 million will be landline connections.

BSNL will also provide 800,000 connections for rural areas and 12,500 village public telephones. The total outlay for this is estimated to be Rs 150.81 billion.