Service provider presented in pastel colours (5)
I believe the answer is:
telco
'service' is the definition.
(I know that telco is a type of public utility)
'in pastel colours' is the wordplay.
'in' indicates a hidden word.
'TELCO' is hidden in the letters of 'pastel colours'.
'provider presented' acts as a link.
This may not be correct. Some or all of it may be part of another bit of the clue.
Can you help me to learn more?
I've seen this clue in The Sunday Times and The Times.
Want a hint initially instead of a full solution?
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