The telecommunications sector is characterised by the mutual interaction between rapid technological change and a constantly evolving regulatory framework. In the case of Brazil, the strategy for the sector was to implement a “big bang” restructuring in the mid- 1990s: dismantling the former TELEBRÁS state-owned system, liberalising the market, allowing entry of additional players, expanding the existing network and supporting fast emergence of additional communication paths, while also setting up a state-of-the-art regulatory authority. On the whole, the Brazilian reform process was exemplary and has enabled the sector to signal the country’s commitment to open trade and investment policies while expanding its telecommunications network. Today Brazil accounts for 43% of all telephone lines in Latin America and has the highest teledensity (OECD, 2007). Thus, at the current stage, transition to a private system has already been accomplished. While from a comparative perspective the Brazilian regulatory structure followed international best practice in general terms, the hurdles of implementation in a large middle-income country facing macroeconomic crises and significant external exchange rate fluctuations were significant. The definition of universal service goals remains at the heart of the policy debate, because the regulatory framework has not fully caught up with technological advances such as the diffusion of broadband Internet and the rapid expansion of access to mobile phones. While the structure of the regulator is relatively solid, the pathway to transition highlights complex socio-political challenges derived from rapidly fluctuating exchange rates and a certain lack of attention to consumers’ concerns. Hence, ANATEL currently faces a situation where additional regulatory action is needed in order to prevent and solve market bottlenecks, facilitate universal access in the context of modern technologies, and better integrate the consumer perspective.