Android READ PHONE STATE?

I did not see <uses-permission android:name="android.permission.READ_PHONE_STATE" /> in your Manifest file.

It is required for your application to be able to read that state.

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.marakana"
    android:versionCode="1"
    android:versionName="1.0" >

    /* permission should be added like below*/
    <uses-permission android:name="android.permission.READ_PHONE_STATE"/>

    <application
        android:icon="@drawable/icon"
        android:label="@string/app_name"
        android:theme="@android:style/Theme.Light" >
        <activity
            android:name=".TelephonyDemo"
            android:label="@string/app_name" >
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />

                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>
    </application>

    <uses-sdk android:minSdkVersion="7" />

</manifest>