Year 2000 Computing Crisis: Readiness of the Telecommunications Industry
(Letter Report, 09/30/1999, GAO/AIMD-99-293).

Pursuant to a congressional request, GAO provided information on the
readiness of the telecommunications industry in meeting the year 2000
technology challenge.

GAO noted that: (1) basic network services are unlikely to be
immediately disrupted by year 2000-related problems if networks are left
unremediated according to experts who have been tracking and studying
the telecommunications industry's year 2000 risks; (2) however,
telecommunications carriers could still experience problems with network
maintenance, service billing, or operator interfaces, such as incorrect
date or day-of-week displays; (3) major U.S. public telecommunications
carriers have reported making good progress in remediating their
networks and supporting systems in order to prevent these types of year
2000-related problems; (4) however, the status of international carrier
renovation efforts is less certain; (5) according to the Network
Reliability and Interoperability Council (NRIC), large domestic carriers
expect to achieve year 2000 compliance by the end of the third quarter
of 1999, while medium and small carriers are projecting that they will
achieve compliance through the fourth quarter of 1999; (6) domestic
wireless providers report similar progress, with large providers
estimating compliance by mid-1999 and medium and small carriers
projecting compliance through the third quarter of 1999; (7) while
information is available to NRIC on major carrier readiness, there is
less information on the status of medium and small carriers; (8) as a
result, efforts are ongoing to collect more data on the readiness of
these carriers; (9) the Federal Communications Commission is completing
a survey, the U.S. Telephone Association is polling its members, and the
National Association of Regulatory Utility Commissioners is developing a
state-by-state assessment; (10) the testing efforts that have been
undertaken over the past year by domestic carriers further indicate that
remediated networks will not experience major disruptions as a result of
the year 2000; (11) internationally, NRIC reported in July 1999 that,
while countries around the globe continue to make progress, with some
exceptions, their efforts have not matched the pace of efforts in the
United States and Canada; (12) NRIC cautioned, however, that the
information available for its assessment was limited and varied in its
view from source to source; (13) also, the results of the assessment
varied widely within each region; (14) the interoperability testing of
international gateway switches is still under way; and (15) in addition
to renovating and testing telecommunications systems and networks, it is
also vital that carriers and the industry plan for unexpected failures,
such as power losses.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-99-293
     TITLE:  Year 2000 Computing Crisis: Readiness of the
	     Telecommunications Industry
      DATE:  09/30/1999
   SUBJECT:  Telecommunication industry
	     Y2K
	     Computer software verification and validation
	     Systems conversions
	     Systems compatibility
	     Strategic information systems planning
	     Data integrity
	     Surveys
IDENTIFIER:  Y2K

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Report to the Special Committee on the Year 2000 Technology Problem, U.S.
Senate

September 1999

Year 2000 Computing Crisis

Readiness of the Telecommunications Industry
*****************

*****************

GAO/AIMD-99-293

B-283621

September 30, 1999

The Honorable Robert F. Bennett
Chairman, Special Committee on the
Year 2000 Technology Problem
United States Senate

Dear Mr. Chairman:

The continuity of telecommunication services into the Year 2000 is
critical to government, individuals, and major economic sectors both
domestically and internationally. On August 3, 1999, we briefed your
office on the results of our review of the reported Year 2000 readiness of
the telecommunications industry. To identify the reported readiness, we
analyzed reports issued by the Federal Communications Commission (FCC),
individual carriers, and industry organizations. We did not independently
assess whether individual telecommunications organizations are, in fact,
Year 2000 ready. We conducted this work from February through July 1999 in
accordance with generally accepted government auditing standards. This
letter provides a high-level summary of our briefing. Our briefing slides
are presented in appendix I.

Basic network services are unlikely to be immediately disrupted by Year
2000-related problems if networks are left unremediated according to
experts who have been tracking and studying the telecommunications
industry's Year 2000 risks, such as the Network Reliability and
Interoperability Council (NRIC) and the International Telecommunication
Union (ITU). However, telecommunications carriers could still experience
problems with network maintenance, service billing, or operator
interfaces, such as incorrect date or day-of-week displays.

Major U.S. public telecommunications carriers have reported making good
progress in remediating their networks and supporting systems in order to
prevent these types of Year 2000-related problems. However, the status of
international carrier renovation efforts is less certain. According to
NRIC, large domestic carriers expect to achieve Year 2000 compliance by
the end of the third quarter of 1999, while medium and small carriers are
projecting that they will achieve compliance through the fourth quarter of
1999. Domestic wireless providers report similar progress, with large
providers estimating compliance by mid-1999 and medium and small carriers
projecting compliance through the third quarter of 1999. 

While information is available to NRIC on major carrier readiness, there
is less information on the status of medium and small carriers. As a
result, efforts are ongoing to collect more data on the readiness of these
carriers. The FCC is completing a survey, the U.S. Telephone Association
is polling its members, and the National Association of Regulatory Utility
Commissioners is developing a state-by-state assessment. 

The testing efforts that have been undertaken over the past year by
domestic carriers further indicate that remediated networks will not
experience major disruptions as a result of the Year 2000. Specifically,
tests of local exchange carrier voice and data networking services as well
as tests on the interoperability between local exchange carriers and
interexchange carrier networks, reported by the Telco Forum and the
Alliance for Telecommunications Industry Solutions (ATIS) respectively,
resulted in few anomalies. None of the anomalies affected call processing
within the network. Further, all Year 2000 anomalies were corrected and
successfully retested before tests were concluded. 

Internationally, NRIC reported in July 1999 that, while countries around
the globe continue to make progress, with some exceptions, their efforts
have not matched the pace of efforts in the United States and Canada. NRIC
cautioned, however, that the information available for its assessment was
limited and varied in its view from source to source. Also, the results of
the assessment varied widely within each region. For example, while Asia
Pacific is considered to be a region at high risk, some nations within
that region, such as Australia, are considered to be at low risk. The
interoperability testing of international gateway switches is still under
way. However, the ITU reported as of July 1999 that testing was
successfully completed on eight international gateway switches./Footnote1/

In addition to renovating and testing telecommunications systems and
networks, it is also vital that carriers and the industry plan for
unexpected failures, such as power losses. According to Telco Year 2000
Forum representatives and information posted by carriers on their web
sites, telecommunications carriers are updating their existing contingency
plans to reflect Year 2000-related contingencies. Details on these plans,
such as when they will be completed, are not yet available. For example,
out of nine major carriers' SEC filings we reviewed in May 1999, five did
not list dates by which their Year 2000 contingency plans would be
complete. NRIC is assessing the progress of business continuity and
contingency planning efforts.

We are sending copies of this report to the Honorable Christopher Dodd,
Vice Chairman, Senate Special Committee on the Year 2000 Technology
Problem, and the Honorable Stephen Horn, Chairman, and Representative Jim
Turner, Ranking Minority Member, Subcommittee on Government Management,
Information and Technology, House Committee on Government Reform. We are
also sending copies to the Honorable Jacob J. Lew, Director of the Office
of Management and Budget. Copies will be made available to others upon
request.

If you have any questions, please contact me or Kevin Conway, Assistant
Director, at 202-512-6240 or by e-mail at [email protected] or
[email protected] . Other major contributors to this work were Mary
Marshall, Sanford Reigle, Philip Rutar, and James Weidner.

Sincerely yours,

*****************

*****************

Jack L. Brock, Jr.
Director, Governmentwide and 
   Defense Information Systems

--------------------------------------
/Footnote1/-^It should be noted, however, that international testing is
  more limited in its minimum defined scope than testing conducted in
  North America. For example, only voice call processing is included in
  the minimum testing requirement defined by ITU; the testing of other
  network services such as data services is optional, as is stress
  testing. Also, information that is being made available on test results
  is much less detailed than the documentation on the results of North
  American test efforts.

*****************

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BRIEFING TO THE SENATE SPECIAL COMMITTEE ON THE YEAR 2000 TECHNOLOGY PROBLEM
===========================================================================

 

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