The Bell Doctrine: Applications in telecommunications, electricity, and other network industries

In this article, Professors Paul Joskow and Roger Noll examine Professor Ba rter's most "visible" contribution to antitrust policy: the Bell Doctrine. The Bell Doctrine, so named because it underpins the 1983 break up of AT&T into the Baby Bells, can theoretically be applied to other network industri es where regulated monopolies control both monopoly segments and potentiall y competitive segments of the industry. The primary purpose of the article is to examine the economic theory of the Bell Doctrine and to evaluate the current applicability of the Bell Doctrine in light of changes that have ta ken place in regulated infrastructure industries. After describing the deve lopment of the Bell Doctrine and reviewing its application in the U.S telec ommunications industry, the authors survey reforms in other industries and in other countries. The recent reforms in the electric power industry are c losely examined as a case study. Professors Joskow and Noll conclude that t he Bell Doctrine continues to dominate the policy analysis of reforms in ne twork industries across the globe, even if easy application of the Bell Doc trine's principles and proposed remedies is no longer possible.