Have a look at the ReadAsset.java from API samples that come with the SDK.
try {
InputStream is = getAssets().open("read_asset.txt");
// We guarantee that the available method returns the total
// size of the asset... of course, this does mean that a single
// asset can't be more than 2 gigs.
int size = is.available();
// Read the entire asset into a local byte buffer.
byte[] buffer = new byte[size];
is.read(buffer);
is.close();
// Convert the buffer into a string.
String text = new String(buffer);
// Finally stick the string into the text view.
TextView tv = (TextView)findViewById(R.id.text);
tv.setText(text);
} catch (IOException e) {
// Should never happen!
throw new RuntimeException(e);
}