Since a new entrant in the telecommunications market requires time in order to construct its own network, a requirement on the incumbent operator to implement carrier selection and pre-selection can enable a new entrant to immediately attract customers and earn revenue. Carrier selection can normally be accomplished in two ways, on a call-by-call basis or through carrel pre-selection. Call-by-call selection allows customers to choose a new entrant rather than the incumbent carrier using a specific code designated to the new carrier each time a call is made. Carrier Pre-Selection, on the other hand, allows customers directly connect to the network of one provider to have access automatically to another company's services when they pick up the phone to make certain types of calls. The carrier pre-selection option is generally considered to be a second regulatory step following the implementation of the call-by-call carrier selection option. Carrier pre-selection with the ability to override on a call-by-call basis for long distance, international, local, and fixed-to-mobile calls has now been implemented in many EU countries. This paper attempts to identify the issues in introducing CPS and to draw policy implications from other countries' experiences.