National policies towards the regulation of the telecommunications industry have undergone significant change in response to technological progress and increasing competition. This article discusses the consecutive revisions of the Swiss regulatory framework during the 1990's and presents lessons to be drawn from this process. After reviewing the Telecommunications Act (Fernmeldegesetz; FMG) 1992 and the reasons for its revision, this article presents the most important prescriptions of the FMG 98 concerning the licence regime, universal service, and interconnection. The implementation of the FMG 98 has led to a fundamental change in regulatory policy. However, transitional rules appear to promote excessively slow adjustments in the current industry configuration.