During the 1990's Chile experienced a rapid growth in telecommunications services that resulted in new services, technological innovation, and prices among the world's lowest. However, despite this fast growth in telecommunication services, most rural inhabitants of Chile and some urban dwellers continued to lack access to even a payphone. In 1994, the government of Chile established a Telecommunications Fund for the purpose of extending services to those without access.‡P⁄This study reviews and documents the cost effective approach developed in Chile that has become the international best practice for improving basic access to telecommunication. Included in the report is detailed information on the design and administration of the Fund and suggestions for improvements to the design. It will serve as a template for developing countries that wish to accelerate their efforts to improve basic access to communication.