What happens to “universal service” commitments when there is a weak institutional framework and a marked imbalance of power between the regulatory authorities and the dominant telecom operators? Commitments are abandoned and service breaks down, according to the author. Using Telmex in Mexico as a case study, and using national, regional, and international comparative data, she builds econometric models that indicate shortcomings in the design and enforcement of telecommunications policies and regulations. These account for the gap in coverage for Mexico's lower-income population.