This paper addresses theoretically and empirically two main issues: whether telecommunications common carriers possess (some of) the assets and competencies required to provide multimedia services and how they can develop lacking key resources. To this aim, common carriers' entry in service provision is examined in the light of a hybrid approach which combines arguments from neo-institutionalist, evolutionary and resource-based theories of the firm. We contend that common carriers are equipped with some of the specialized assets and distinctive capabilities required to be successful in service provision, notably in the technological and marketing spheres. We also claim that cooperative agreements are in most cases more effective than autonomous investments, mergers and acquisitions, and arm's length relations to develop the remaining lacking resources. We provide empirical evidence from the MOSAICO database relating to the initiatives undertaken by common carriers in multimedia in the period 1990–'95. The findings of the empirical analysis document the growing interest of common carriers in service provision. They also show the widespread use of inter-industry (both equity and non-equity) joint collaborations.