A variety of policies have been suggested to guide the continuing libe
ralization of the telecommunications sector in both the developed and
developing world, However, the priorities and theoretical foundations
of many approaches have omitted what is perhaps the most important fac
tor for future policy development: the sustainability of telecommunica
tions companies and national infrastructures in a competitive environm
ent, This article offers a new perspective on how liberalization can p
roceed and strengthen the chances for institutional stability among pr
ivate and public sector service providers. Copyright (C) 1996 Elsevier
Science Ltd