The social democrats, in office from 1985 to 1995, have introduced sig
nificant reforms in the Portuguese telecommunications sector. The term
inal equipment and advanced services were liberalized; the separation
of the regulatory and operational functions became effective; the tele
communications sector underwent a major restructuring which involved t
he merger of the three main public telecommunications operators and, f
inally, the main operator, Portugal Telecom (PT), was partly privatize
d. The European Union (EU) has certainly played a part in the national
telecommunications reform but this article argues that, although most
of the policy decisions adopted in Portugal are in accordance with th
e EU policy framework, it does not necessarily follow that they were i
mposed by the Union and that they were in contradiction with the gover
nment's short-term objectives. Copyright (C) 1996 Elsevier Science Ltd