We performed a case analysis to derive factors leading to telecommunications service failure. In this study, 15 failure cases in the Korean telecommunications service industry were analyzed. From the analysis, eight factors leading to telecommunications service failure were found. The characteristics of eight failure factors were analyzed depending on the phases of the NPD process and the types of the services. The characterization of the failure factors provided important managerial implications for the efficient service development process. In the ever-changing business environment, simply following previous success factors never allows for the duplication of success. Learning from the failure case analysis provides important insight for the development of new telecommunications services. (C) 2004 Elsevier Ltd. All rights reserved.