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Traditional network management, with stress on monitoring rather than control, can not meet the needs of emerging multiservice networks with QoS guarantees. We propose a policy-based solution to support delivery and management of network infrastructure and enhanced network services. The article describes requirements for management of enhanced network services, hierarchical policy architecture, and provides an overview of policy-based management framework. We discuss policy-driven service management with emphasis on QoS management, dynamic service provisioning, and Internet pricing and billing.