No firm would want to waste its resources by pursuing customers who are not likely to be profitable in the future. Now a day marketers have realised the need for a company to be customer oriented. Consequently, for a firm to manage its interactions with its customers on a continuous basis and simultaneously maximise profitability, it is important for the firm to ensure that its Customer Relationship Management programme must emphasise the concept of Customer Lifetime Value (CLV). Understanding this concept helps the marketers to analyse the cost of acquiring, serving and retaining a certain category of customers in the market. This research paper throws light on understanding and measurement of customer lifetime value concept in telecommunication industry. Today, the telecom industry in India is witnessing an aggressive scenario due to fierce competition, advancement in technology and varying customer demand.