The article describes the ideological background to the more than 40-year monopoly of the Department of Telecommunications over Indian telecommunications. It traces how the monopoly was eased between 1986 and 1991 and then how the government gave up its policy of central planning and control, It describes the adoption of the new National Telecom Policy (NTP) in 1994 and the difficulties of its implementation, In so doing, it highlights the lessons of demonopolization for other developing countries. (C) 1998 Elsevier Science Ltd, All rights reserved.