Tata Teleservices had close to 59,000 subscribers and has registered a turnover of Rs 85 crore in the FY 2000-01. During the same period, it expanded its services beyond Hyderabad to Vijayawada, Guntur and Visakhapatnam. It is the third largest private operator in the country next to Hughes Tele.com and Bharti Telenet.

Tata Teleservices launched the first pay telephone booth operating on the smart card technology and has over 2,000 pay telephone booths today. It was the first to have introduced services on CDMA network and also the CENTREX technology for the corporate segment. It is also the first company in the country to launch limited mobility services (Tata Mobitel).

The company consolidated its business and its network throughout the year. The plan was to consolidate its base stations by July and have a larger geographic coverage by September. It is planning to expand its network to other towns like Rajamundhry, Kakinada, Yeluru, Warangal, Nellore and Tirupati by the year-end. Right now with a cumulative capacity of 1,30,000 lines in its network, it plans to enlarge its network over the next two years to cover fifteen towns and have 3,00,000 telephone lines in place across the state. It is also building an OFC backbone, covering 2,000 km that can carry 2 Mbps to 2.5 Gbps from Visakhapatnam through Hyderabad to Tirupati.