Abstract The focus of this study is on the liberalization of the telecommunications industry, especially the mobile phone sector and the emerging network governance structure in the mobile phone sector. From being a monopoly of the government, telecommunications services are now being provided by a number of government linked privatized firms, private firms and a foreign firm with Malaysian partners. In the mobile phone market there are currently three firms that are competing for market share. However, there is a close connection between the firms because current government officers or retired government officers sit on the board of all four firms. An independent regulator, the Malaysian Communication and Multimedia Commission (MCMC) has been set up to facilitate and coordinate competition among the mobile phone firms and to ensure the efficient diffusion of accurate information. The elite connection between members of the board of the five firms and members of the MCMC, who are from the government and the private sector, also facilitates the flow of resources between the members of the network and the interconnection of services between the firms. The MCMC is also required to hold public hearings before making decisions and recommendations to the Minister and this allows for the participation of civil society groups in the policy making process. The private sector has also been empowered as it is free to set rates and negotiate interconnection charges