Telecommunications is one of the fastest growing industries. Due to WTO regulations and liberalization India has allowed FDI in telecommunication. This has affected the competitive advantage of Indian public sector companies; they could not capitalize on the opportunities presented by the growing telecom industry in the country. The competition intensity has totally changed the rules of the game in the telecom service providers segment, which in turn resulted in a sharp decline of profits for the telecom public sector companies. MTNL, the oldest of the public sector, embraced resource sharing with its competitors, and developed innovative products for survival using the innovative value loop. This paper discusses the resource based view approach used by MTNL in sustaining its competitive advantage through dynamic consistency.