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TIMESTAMPS

Federal Communications Commission
Spearheads Oversight of the U.S. Communications Industries'
Y2K Preparedness
By Robert J. Butler and Anne E. Hoge, Wiley, Rein & Fielding
(Originally published in Messaging Magazine, September/October 1999)

*NOTE: This article is not intended to give, and does not give, legal advice and does not represent the views of Wiley, Rein & Fielding. This article was written based on research conducted during July 1999. Readers should update the status of the information provided in this article prior to taking any action based on this information, as federal and state Y2K efforts are constantly evolving.

Nearly all U.S. industries and consumers rely heavily on the performance of this country’s communications systems. Y2K problems that impede these communications systems could lead to devastating results, particularly for the messaging industry. This article is designed to give an overview of the federal government’s activities to date to evaluate and assist the Y2K remediation efforts of the U.S. communications sectors.

Given the vital importance of ensuring that the U.S. communications systems remain functional beyond January 1, 2000, the federal government has undertaken a number of actions ranging from information gathering to legislation over the past two years to facilitate the U.S. communication sectors’ Y2K remediation and contingency planning efforts. The Federal Communications Commission (FCC or Commission), which has primary regulatory authority over wireline and wireless telecommunications, satellites, cable, and television and radio broadcasting, has taken the lead role in monitoring and assisting the communications sectors.

Congress
Congress has been involved in a variety of activities relating to Y2K. On the legislative front, communications companies may be subject to and may be able to invoke the protections and benefits of the federal Y2K acts, including the Year 2000 Information and Readiness Disclosure Act, the Small Business Year 2000 Readiness Act, and the Y2K Act.

Congress also has been monitoring the remediation efforts of the communications sectors. The Senate Special Committee on The Year 2000 Technology Problem and the House Subcommittee on Technology and House Oversight Committee have held a number of hearings pertaining to the remediation efforts of the U.S. communications industries. On February 24, 1999, the Senate Special Committee released its report Investigating The Impact Of The Year 2000 Problem, which contains a section regarding the status of Y2K remediation in these industries. The report notes three outstanding concerns regarding Y2K and communications, including the need for increased contingency planning, security problems related to Y2K—which are being addressed through the National Communications Systems (NCS) and the National Security Telecommunications Advisory Committee (NSTAC)—and Y2K remediation efforts for international communications. The Senate Special Committee is expected to release an updated report in September 1999.

President’s Council On Year 2000 Conversion
The President’s Council on Year 2000 Conversion, through the Y2K Telecommunications Sector Working Group chaired by FCC Defense Commissioner Michael Powell and Dennis Fischer of the General Services Administration, also has been assisting with communications industry Y2K efforts. One of the group’s most noteworthy activities has been working with communications companies and the FCC to determine whether the Commission should postpone regulatory deadlines that would hamper these companies’ Y2K remediation efforts. The FCC is expected to release a policy statement on this issue during the fall of 1999.

Federal Communications Commission
The Commission has spearheaded actions relating to the communications sectors’ Y2K preparedness, participating in:

1. Y2K outreach and advocacy, including information sharing for companies and consumers;
2. Monitoring and assessing Y2K remediation efforts and reporting to Congress; and
3. Contingency planning efforts.

As of July 1999, with the limited exception of tower lighting regulation discussed below, the FCC has not formally adopted Year 2000-specific regulations for communications companies and has not identified existing regulations that apply to communications companies in the Y2K context. While it is impossible to predict what actions the agency will take during the closing months of the century, it can be expected that, at a minimum, the FCC will continue its efforts to monitor communications companies’ remediation, testing, and contingency planning activities through industry groups and surveys.

FCC Year 2000 Task Force
At the heart of the Commission’s Y2K efforts is the FCC Year 2000 Task Force, which was created in early 1998 to coordinate the Y2K efforts of the various Commission Bureaus. The Task Force is Chaired by FCC Defense Commissioner Michael Powell. The Executive Director of the Year 2000 Task Force is Marsha MacBride, and various agency staff members are in charge of each of the Commission Bureaus’ efforts. The FCC Year 2000 Task Force also maintains a website detailing Y2K efforts pertaining to the communications sectors at www.fcc.gov/year2000/.

FCC Y2K Forums
Throughout the last half of 1998, the Commission hosted individual meetings and 12 forums regarding the Y2K preparedness of the U.S. communications industry sectors. These forums addressed Y2K problems relating to public safety communications, commercial and private wireless communications, international telecommunications and High Frequency (HF) (Shortwave) international broadcasters, wireline telecommunications, satellite, cable, broadcasting, customer premises equipment and private networks, emergency response communications, and antenna structures. While the forums garnered some useful information, companies were generally reluctant to share information due to confidentiality and liability concerns.

FCC Y2K Surveys
The FCC, in conjunction with various industry groups, issued both mandatory and voluntary surveys to companies in each of the various communications sectors during late 1998 and early 1999. The results of these initial surveys were reported in the Y2K Communications Sector Report discussed below.

Given a low response rate to the initial surveys from some industry sectors and the need to update the status of Y2K preparedness of the communications sectors, each of the FCC Bureaus issued new surveys to various companies during June and July of 1999. The FCC anticipates that it will release the results of these new surveys during the fall of 1999.

Status of the Communications Industries’ Remediation Efforts:
Y2K Communications Sector Report
The culmination of the Commission’s initial Y2K meetings, forums, and surveys was the Y2K Communications Sector Report, published by the FCC in March of 1999. Generally speaking, the report concluded that many of the communications sectors, especially the larger companies within each of these sectors, are on track for completing Y2K remediation efforts and establishing contingency plans by the Millennium. The following is a brief summary of the FCC’s conclusions regarding the preparedness of each industry sector and a discussion of the primary industry groups that are assisting each of the sectors in their remediation efforts:

• Wireline Telecommunications. The largest local and long distance telephone companies are believed to be well along with their Y2K remediation and contingency planning, while medium and small telephone companies are believed to lag behind in these areas. The FCC has been encouraged by the testing results of the Telco Year 2000 Forum, the Alliance for Telecommunications Industry Solutions (ATIS), and the National Reliability and Interoperability Council (NRIC), the later of which co-sponsored the report and has been engaged in a number of other Y2K-related information and testing activities relating to telecommunications. The FCC has also been working with the Rural Utility Service (RUS) and the National Telephone Cooperative Association (NTCA) to address rural telco issues. A July 1999 NTCA study indicates that most rural telephone companies are expected to be Y2K compliant.
• Wireless Telecommunications. The FCC found that wireless handsets are expected to have few Y2K problems, except for those integrated with a computer system. Like wireline telecommunications, large wireless companies are believed to be well along in their remediation efforts, but the FCC lacked the information to form similar conclusions regarding smaller companies. The agency cautioned that its results were somewhat inconclusive because it had a poor response rate to its surveys. The Commission noted that the Personal Communications Industry Association (PCIA) and the Cellular Telecommunications Industry Association (CTIA) have been instrumental in facilitating Y2K efforts for the wireless sector.
• Broadcast Television and Radio. The Commission concluded that the "public should continue to have access to critical news, emergency information and entertainment services" after the Millennium. The FCC also found that a majority of broadcasters had adopted formal remediation and contingency plans and that many broadcasters expect to have time to test their systems during the last half of 1999. The Commission noted that it has been working closely with the National Association of Broadcasters (NAB) on Y2K issues.
• Cable Television. Most large and medium-sized cable operators, serving over 80 percent of the nation’s cable subscribers, are expected to experience only limited Y2K problems, while small cable operators may experience outages. Further, more interoperability testing is needed. The agency acknowledged the Y2K efforts of the National Cable Television Association (NCTA), CableLabs, the Cable Telecommunications Association (CATA), the Small Cable Business Association (SCBA), and state cable associations.
• Satellite and High Frequency Broadcast. The Commission found that Y2K problems likely will not affect satellites in orbit, but there is concern that earth stations and the interconnection of satellite gateways could be affected. International HF broadcasting stations indicate that they will not experience Y2K problems, but some problems could exist with respect to transmitters, antennas, and other related equipment.
• International. The FCC has been especially concerned about the Y2K compliance of international telecommunications carriers. Based on studies conducted by NRIC and the International Telecommunication Union (ITU), high-risk countries for Y2K problems exist primarily in Central and South America, the Indian sub-continent, and the sub-Sahara regions, and medium-risk areas exist in Northern East Asia, the Middle East, North Africa, and Eastern Europe. Low-risk areas are North America, Western Europe, and Israel. The Commission has been working with the ITU to share information regarding remediation and contingency planning.
• Emergency Communications. The agency also has been particularly concerned about potential date-related problems that could affect 911 calls, Public Safety Answering Points (PSAPs) or dispatch centers, wireless communications to response teams, and the Emergency Alert System (EAS), for which radio, television, and cable channels have transmission obligations. In the report, the Commission found that the Telco Year 2000 Forum’s 911 tests found no failures or anomalies associated with Y2K. The FCC also concluded that local governments that operate PSAPs or dispatch centers must take action to ensure that these vital services will be Y2K compliant. Most EAS equipment vendors have indicated that their systems are Y2K compliant or that compliant systems are available. Other FCC actions in this arena include the FCC’s September 29, 1998 Order and Notice of Proposed Rulemaking on Public Safety Communications seeking comment on the public safety community’s Y2K efforts, and Commissioner Powell’s July 13, 1999 letter to state and local emergency service directors regarding Y2K remediation issues. The FCC has been working with the Federal Emergency Management Agency (FEMA), the Department of Defense, and the Telco Year 2000 Forum on these issues.
• Global Positioning Systems. The Commission reports that the Department of Defense has found that GPS signal equipment and military GPS receivers are Y2K compliant. Civil GPS receivers, however, may experience problems, and there may be problems associated with other date-change issues for GPS.
• Tower Lighting. Another area of particular concern for the Commission is tower lighting. The Commission issued a Public Notice on November 25, 1998 confirming that tower operators, even in the context of Y2K, must comply with the FCC’s tower lighting, inspection, and notification requirements under Part 17 of the FCC’s Rules. The agency has been working with the Federal Aviation Administration (FAA) on this issue.

What’s Next?
As the century change nears, the FCC has shifted its focus from monitoring Y2K remediation efforts to assisting communications companies with testing and contingency planning. It is expected that the Commission will release revised information regarding the Y2K preparedness of the various communications sectors during the fall of 1999. In addition, it is anticipated that the FCC will release a policy statement regarding Year 2000 Network Stabilization that addresses ways in which individual companies may seek relief from pending regulatory deadlines in order to facilitate Y2K compliance.

Other Federal Regulatory Obligations
The Y2K oversight and regulatory efforts of other federal agencies, such as those of the Securities and Exchange Commission (SEC), may likewise affect communications companies. The SEC has imposed Y2K disclosure requirements relating to publicly traded companies’ required filings. Information regarding this obligation is located on the SEC’s website at www.sec.gov. Other federal agencies’ regulations may impact communications companies such as federal banking regulations regarding loans and government contract regulations for those communications companies that contract with the government for services and equipment.

State Efforts
In addition to federal efforts, many states may have adopted Y2K legislation and regulations that affect communications companies. State Public Utility Commissions (PUC) have been involved in assessing the Y2K remediation efforts of the communications companies that they regulate, in conjunction with the National Association of Regulatory Commissioners’ (NARUC) Y2K Task Force. These actions include surveys, Y2K-specific regulations, and decisions explaining that existing regulations apply in the Y2K context. MM

For information on article reprints, contact Jay Devine, Communications Manager at jay.devine@ema.org.

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