Abstract
Countries that are privatizing their telecommunications assets are coming to realize that privatization is not the end of government participation but rather the end of the beginning. Remaining to be decided to be decided are how to establish a fair and efficient regulatory structure that is transparent to all; the appropriate scope of competitive services for achieving efficiency; and reforms of pricing and tariffs to provide effective market signals to potential entrants. Competition and pricing issues are discussed, particularly as they apply to Brazil, where cost and demand conditions appear conducive to open entry and market liberalization in many or all telecommunications markets. At the same time, the establishment of regulatory agencies is required to prevent monopoly profits and encourage competitive entry where feasible and desirable. Franchise regulation, rate and tariff design, and rate rebalancing are prime issues.