15 October 1999 Source: http://www.access.gpo.gov/su_docs/aces/fr-cont.html ------------------------------------------------------------------------- [Federal Register: October 15, 1999 (Volume 64, Number 199)] [Notices] [Page 55924-55926] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15oc99-76] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION [FCC 99-272] Year 2000 Network Stabilization Policy Statement AGENCY: Federal Communications Commission. ACTION: Policy statement. ----------------------------------------------------------------------- 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 [[Page 55925]] 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 [[Page 55926]] 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