Review of Industrial Organization 16: 219–223, 2000.
© 2000 Kluwer Academic Publishers. Printed in the Netherlands.
219
Discussant Comments on Papers by Andrew
Joskow, Daniel Rubinfeld, and Janusz Ordover and
Margaret Guerin-Calvert
MARIUS SCHWARTZ
⋆
U.S. Department of Justice, Antitrust Division, Washington DC 20530, U.S.A.
Rather than attempting to discuss all three papers in detail, let me concentrate on a
few main themes. I will devote most of the discussion to Andrew Joskow’s paper,
which addresses competition in telecommunications since the 1996 Telecommuni-
cations Act – an issue of considerable interest to me given my prior and ongoing
work in this area.
Joskow
The paper covers two main topics: entry into long-distance (interLATA) services by
the Regional Bell Operating Companies (RBOCs) under Section 271 of the Tele-
com Act; and mergers between large incumbent local phone companies (ILECs,
such as the RBOCs or GTE) that operate in non-overlapping local territories. I
agree substantially with the paper’s analysis and only wish to expand on a few
points.
RBOC Entry into Long Distance. The DOJ’s standard for recommending FCC ap-
proval of an RBOC’s long-distance application in a state requires that the RBOC’s
local market in that state must first be fully and irreversibly open to competition.
1
⋆
Economics Director of Enforcement, Antitrust Division, U.S. Department of Justice, and Pro-
fessor of Economics, Georgetown University (on leave). These discussant comments do not purport
to reflect the views of the Department of Justice.
1
Among other things, this entails showing that the new arrangements needed for local
competition (such as operations support systems through which competitors can interface elec-
tronically with the incumbent) are in place, and that a track record of their performance has
been established so as to prevent backsliding by an RBOC once it receives long-distance au-
thority. See Evaluation of the United States Department of Justice (DOJ), In the Matter of
Application of SBC Communications Inc. et al. Pursuant to Section 271 of the Telecommu-
nications Act of 1996 to Provide In-Region, InterLATA Services in the State of Oklahoma,
FCC, CC Docket 97-121, May 16, 1997 (www.usdoj.gov/atr/public/comments/sec271/sbc/sbc.htm).