This paper describes the global trends, national policies, and firm strategies associated with the rapid growth in private investment in emerging markets telecommunications infrastructure during the 1990s. We discuss the recent wave of private investment in all sectors of emerging markets infrastructure, and identify the principal forces driving change in telecommunications. We draw on a specialized database of 554 telecommunications infrastructure projects in 96 developing countries, and report on trends by region, country, and principal investing firm. We find that the largest projects involve multiple partners, stages, and contingencies, and that the duration of the ‘liberalization lag’ between the privatisation of the state-owned monopoly and the subsequent opening of the market emerges as a critical element in the success of reform schemes. We draw lessons for governments and investors participating in telecommunications reform, and other infrastructure sectors just now beginning the process of liberalization.
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