[Federal Register Volume 64, Number 199 (Friday, October 15, 1999)]
[Notices]
[Pages 55924-55926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26962]
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FEDERAL COMMUNICATIONS COMMISSION
[FCC 99-272]
Year 2000 Network Stabilization Policy Statement
AGENCY: Federal Communications Commission.
ACTION: Policy statement.
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SUMMARY: This document states the Commission's awareness of the
potential effects on Year 2000 compliance of regulatory actions that
require changes to computer systems and networks within the
telecommunications industry. The Commission states its intention to
consider industry requests for waivers, stays of regulatory
requirements, and petitions for extensions as precaution against Year
2000 conversions made by industry in preparation for the Year 2000
rollover.
DATES: Effective October 15, 1999.
FOR FURTHER INFORMATION CONTACT: Paul Jackson, Office of Commissioner
Michael Powell, (202) 418-2203 or via the Internet at pjackson@fcc.gov.
Further information may also be obtained by calling the Commission's
TTY number: 202-418-2989.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's FCC
99-272, adopted October 4, 1999, and released October 4, 1999. This
document is available for inspection and copying during regular
business hours in the FCC Reference Information Center, Room Cy-A257,
445 12th Street, SW, Washington, DC, and is available on the FCC's
Internet site at www.fcc.gov/Bureaus/Engineering__Notices/1999/. This
document may also be purchased from the Commission's duplication
contractor, International Transcription Service, Inc. (202) 857-3800,
1231 20th Street, NW, Washington, DC 20036.
Summary of Policy Statement
1. The Federal Communications Commission (``Commission'') considers
the Year 2000 (``Y2K'') Date Conversion Problem, or so-called Y2K
Problem, to be one of the country's most pressing technical concerns.
The Commission has worked deliberately and patiently to raise awareness
of the Y2K Problem, monitor the efforts of industry to address it
effectively, and facilitate the development of contingencies in event
of unseen disruption scenarios.
2. In this regard, we are also concerned with the impact any of our
regulations may have on the efforts already undertaken by the
communications industry to prepare their systems for the year 2000
date-rollover. Accordingly, we herein adopt this ``Year 2000 Network
Stabilization Policy Statement'' (hereinafter the ``Policy
Statement''). We believe that by adopting the policies outlined in the
statement we will facilitate the ability of all communications
providers to establish stable and secure network environments necessary
to continue to perform meaningful Y2K tests and to implement
appropriate Y2K solutions prior to the January 1, 2000 millennial
rollover.
3. The Policy Statement conveys the Commission's intention to
consider industry requests for stay of regulatory requirements, where
appropriate, as a precaution against potentially disruptive non-Year
2000-related modifications and upgrades made to various systems and
networks pursuant to the implementation requirements of Communications
Act of 1934 or the Commission's rules. We will consider these requests
as they relate to any of the industries over which we have regulatory
oversight including the wireline, wireless, radio and television
broadcast, cable television, satellite and international
telecommunications industries.
Background
4. The Y2K Problem is the inability of some computers and other
related automated and intelligent systems to process correctly the
millennial date conversion that will occur on January 1, 2000. In the
1950s and 1960s, computer designers and programmers, in order to reduce
the need for expensive computer memory and data storage, developed the
convention of storing calendar year dates using only the last two
digits for the date year. Thus, the calendar year 1967 was represented
as ``67.'' As a consequence, computerized systems and networks may
erroneously assume ``00'' to be ``1900,'' not ``2000,'' and thereby not
function properly in the year 2000. In some cases, the hardware and
software will continue to work, but they will generate and process
spurious data that may not be detected for months or even years after.
5. The Y2K Problem also has the potential to affect billions of
systems and products that make use of microprocessors and so-called
computer ``microchips''. Microprocessors and microchips can be found in
a wide range of consumer products, such as toasters, washing machines,
microwave ovens, dishwashers and video cassette recorders. They are
used extensively in automobiles, trucks and other transportation
vehicles. Microprocessors
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and microchips are also used extensively in industrial applications
such as environmental and climate control systems, manufacturing
systems, and power distribution systems. Microchips and microprocessors
are used extensively in communications systems.
6. The implications of the millennial date change problem are
especially significant for the communications industry because
communications rely upon the seamless interconnection of numerous
disparate networks and systems. Consider hundreds of millions of users
of communications services throughout the country transmit voice, data
and video information through a communications infrastructure composed
of wireline telephone networks, cellular and personal communications
systems, satellite communication systems, broadcasting and cable
television systems, and the Internet. Many critical programs, such as
Federal Reserve electronic fund transfers and Medicare benefit
payments, also depend upon this ubiquitous infrastructure and,
consequently, could be seriously affected if the Y2K Problem interrupts
telephone and data networking services.
Discussion
7. Ensuring the health of the critical communications ``nervous
system'' is the collective task of industry, the Commission, and other
interested stakeholders, not the least of whom are communications end-
users. For their part, the major U.S. communications providers have
generally worked aggressively to remediate their various systems and
networks. The Network Reliability and Interoperability Council
(``NRIC''), a federal advisory committee that reports directly to the
FCC, recently conveyed to the Commission that the major communications
companies reported having completed the remediation of 98% of their
networks as of June 30, 1999. In the domestic context, the NRIC
assessment addresses the Y2K-readiness of the country's local exchange
carriers representing over 92 percent of the country's total access
lines and of inter-exchange carriers whose revenue comprised
approximately 82 percent of the industry total revenue for long-
distance service.
8. By no means does industry contend that they have completed their
testing and validation efforts. Consequently, NRIC represented that the
current focuses of major carriers and providers remain steadfastly on
testing and contingency planning at all levels. In this context, the
major communications providers and prominent trade organizations have
commenced a dialogue on the issue of network protection and
stabilization to minimize problems associated with the Year 2000
changes.
9. The major communications companies have generally been working
diligently during the past several years on Year 2000 remediation. Most
companies have devoted tremendous amounts of executive management
leadership, human resource assets, financial capital and technical
expertise on both the direct and indirect effects of the problem. It
has come to the Commission's attention that, in a number of instances,
in both private industry and within the government, networks that were
remediated, tested, and determined to be Year 2000-compliant have been
disrupted by the addition of other systems, databases, and changes to
networks not related to Year 2000. In effect, these changes threaten to
``undo'' Year 2000-remediation performed on networks, at a time when
much work remains to be done.
10. Consequently, on a going-forward basis, the industry generally
and many of the individual companies specifically are planning on
implementing a network stabilization period in order to ensure the
establishment of stable Year 2000-compliant environments. The industry
maintains that the ``Commission needs to be sensitive to any and all
rulemakings and orders which would impact computer systems and require
software changes'' and advises the Commission ``to schedule and
coordinate implementation requirements so they do not fall within the
months in which software code is to remain unchanged.''
11. The issue of network protection and stabilization also has
specifically arisen in a number of Commission proceedings. For
instance, in considering an extension of time for the compliance date
under Section 107 of the Communications Assistance for Law Enforcement
Act, the Commission took into account the need to avoid the Y2K problem
when it established a new compliance deadline of June 30, 2000.
Moreover, the network stabilization period issue was also addressed in
a proceeding involving a request for a waiver in New York of the ten-
digit dialing requirement in the Commission's rule governing area code
relief. In the Commission's Order, the Network Services Division of the
FCC's Common Carrier Bureau stated that ``[w]e share Bell Atlantic's
concern with the Year 2000 problem, and agree that its network
stabilization period is prudent given the uncertainties associated with
the Year 2000 problem.'' Consequently, the Division granted an
extension of the temporary waiver until after the network stabilization
period.
12. Because of concerns associated with Y2K, the FCC's Wireless
Telecommunications Bureau also postponed the start of its planned cycle
of paging auctions from December 9, 1999 to February 24, 2000. The
bureau specifically noted in a public notice that it ``recognizes that
[wireless companies] preparing their existing businesses for the Y2K
roll-over while preparing for an auction could present formidable
problems for potential bidders.''
13. We are also cognizant of the steps that other federal agencies
have taken to address this issue. The Office of Management and Budget
(``OMB'') transmitted a memorandum regarding the minimization of
regulatory and information technology requirements that could affect
Year 2000 conversion in May 1999. In relevant part, the memorandum
counsels that Federal departments and agencies, to the extent possible
given their respective statutory responsibilities, ``should not
establish requirements that would have an adverse effect on [Year 2000]
readiness, if such requirements can be delayed or if there is an
alternative that would not have an adverse effect.''
14. The Securities and Exchange Commission (``SEC'') has also
promulgated Year 2000-readiness guidelines. In August 1998, the SEC
issued a policy statement regarding a regulatory moratorium to
facilitate the Year 2000 conversion. The SEC's policy statement
established a moratorium on the ``implementation of new [SEC] rules
that require major reprogramming of computer systems by SEC-regulated
entities between June 1, 1999 and March 31, 2000.''
Policy
15. Given the forgoing, the Commission establishes the following
principles to facilitate the ability of all FCC-regulated entities to
establish stable and secure network environments necessary to continue
to perform meaningful Y2K tests and to implement appropriate Y2K
solutions prior to the January 1, 2000 millennial rollover:
i. The Commission will consider, where applicable, the potential
effects on Year 2000 remediation of regulatory actions that require
changes to computerized systems and networks utilized by the
communications industry.
ii. The Commission will consider industry requests for waivers,
stays of regulatory requirements, and other
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related petitions for extensions, where appropriate, as a precaution
against potentially disruptive non-Year 2000-related modifications and
upgrades made to various systems and networks pursuant to the
implementation requirements of Communications Act of 1934 or the
Commission's rules.
iii. The Commission reserves the express right to implement new
rules and regulations, where such rulemaking is necessary or required
to protect the public interest in response to statutory implementation
requirements, emergency conditions or special circumstances that may
arise in the days remaining prior to the millennial date roll-over. To
reiterate, however, the Commission will be sensitive to individual
waiver requests or, in the alternative, act on its own motion to stay
rules during this short period of time.
iv. The Commission does not propose to establish a regulatory
moratorium period in which all regulatory actions that may affect
communication systems or equipment are suspended. We do not believe
that such sweeping action is necessary to stabilize the industry's
remedial efforts or to protect the interests of the public.
Conclusion
16. We reiterate that the Commission cautions parties against
attempting to use our network stabilization policy to ``forestall'' or
``roll back'' disfavored regulations, or to use this policy for
purposes of competitive advantage. This policy is intended solely to
address the unique circumstances and challenges presented by the Year
2000 Problem.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 99-26962 Filed 10-14-99; 8:45 am]
BILLING CODE 6712-01-P
