[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 [email protected]. 
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