Summary

Basic network services are unlikely to be immediately disrupted by the Year 2000 problem even if networks are left unremediated, according to experts. 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 head off these types of Year 2000 problems. The status of international carriers' renovation efforts is less certain. In response to the lack of information on the status of medium and small carriers, the Federal Communications Commission is doing a survey, the U.S. Telephone Association is polling its members, and the National Association of Regulatory Utility Commissioners is doing state-by-state assessments. The testing efforts undertaken during the last year by domestic carriers further indicate that remediated networks will not experience major disruptions as a result of the Year 2000 computer problem. Internationally, the Network Reliability and Interoperability Council reported this year that, although countries around the world continue to make progress, with some exceptions, their efforts have not matched the pace of efforts in the United States and Canada. In addition to renovating and testing telecommunications systems and networks, carriers and the industry must also plan for unexpected failures, such as power losses. Telecommunications carriers are updating their existing contingency plans to reflect Year 2000-related contingencies, but details on these plans, such as when they will be completed, are not yet available.

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.