This chapter begins by assessing the rising importance of Information and Communication Technology (ICT) in pursuit of economic growth and identifies two implicit theoretical underpinnings, based on neo-classical and Hayekian ideas and Schumpeterian thinking respectively, with differing assumptions about the relationship between market and state intervention. It examines how the understandings have been manifest in European Union (EU) telecommunications policy. Increasingly, in line with Schumpeterian thinking, the primary policy objective is no longer market liberalisation, lower market entry barriers, corporate efficiency and consumer welfare but rather the emphasis has moved to innovation and associated monopoly rents and is therefore inconsistent with open markets. Policy makers nevertheless seem to accept uncritically the need for next generation networks (NGN) and rather ponder whether these should be offered on a competitive basis or through a reversion to old market structures. The Schumpeterian inspired policy paradigm views regulatory intervention, especially of a sector specific kind, as restrictive.