Abstract: There is disclosed a compact telephone instrument with a telescoping operation. A first housing has a conventional telephone receiver located within a hollow recess thereof. The housing is removably secured to a bottom housing which contains a dialer assembly. A series of guide mechanisms are formed in both housings and are used to accommodate a third housing containing a telephone transmitter. The third housing is slidably mounted within the receiver and dialer housings to enable on-hook and off-hook operations by sliding and extending outwardly for off-hook operation and by pushing the housing inward for on-hook operation. The movement of the transmitter housing between the on and off hook positions automatically activates a hook switch arrangement by means of tabs which are permanently secured on slide members associated with the transmitter housing and which tabs actuate leaf spring switches located on a component board positioned between the dialer and receiver housings.