Hi Anish,
It depends. Asterisk is installed on each MP2 node but it is typically not used as a server. There are a number of ways you can make calls with the MP2.
1/ You can dial directly between MP2s on the network using the last octet of the IP address of the device. This supports simple local calling for most networks. You can also dial the full IP address but for most purposes, the last octet is fine. Most networks have far fewer than 254 nodes.
2/ The MP2 does have a softphone facility which does allow non-MP2s VoIP clients e.g. smartphones to register on the network and make local calls. In this case, you would identify a single MP2 on the network to enable the softphone facility on and smartphones would then register on that device. In this case Asterisk on the MP2 is behaving as a very small scale VoIP server. More information on how to do this is available in the User Guide at
http://download.villagetelco.org/user-docs/secn/secn-4/SECN-4_UserGuide.pdf
3/ You can register each MP2 to an external VoIP service provider which would give each MP a full DID that can be called from any phone in the world. This is fine for small networks that want to be connected to the PSTN.
4/ You can set up a local Asterisk or Freeswitch service and register the MP2s to it and gateway calls from their to a VoIP service provider. Under this scenario you might have a single number for the network and have each MP2 addressable via an extension. This would work for a network with mostly outgoing calls. You could also increase the number of incoming lines to your local asterisk server to accommodate more simultaneous incoming calls.
Cheers... Steve