This paper presents an historical account of the reforms to New Zealand’s telecommunications policy which have occurred since 1986. The history is set around three stages: the period leading up to the review of the New Zealand Post Office in 1986; the corporatisation and subsequent privatisation of Telecom New Zealand in 1990; and, the implementation of the so-called ‘light-handed’ regulatory regime since 1990. This paper focuses on the period up to 1990 to address the question why telecommunications reform took place in New Zealand. It is argued that the ideological disposition of the New Zealand Treasury was very influential in determining the outcomes of the reform process. This paper also makes some observations on the broader political aspects of the reform process.