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Y2K-READY FIRMS TO FEEL EFFECTS FROM THE UNPREPARED

WASHINGTON-A new Senate report concludes most wireless carriers and other telecom service providers are not endangered by year-2000 computer glitches, but lawmakers warned that inadequate preparation by rural telcos, local 911 emergency dispatchers, small businesses and foreign nations could have a domino effect that harms those that are Y2K ready.

“The Y2K problem will not be felt across the country but across the street,” said Sen. Robert Bennett (R-Utah), chairman of the Senate select committee on the year 2000 technology problem.

But with 100 days to go before the start of the new millennium, Bennett cautioned, “There is still work to be done. If you stockpile anything for Y2K, stockpile information.”

Bennett, joined by Sens. Christopher Dodd (D-Con.) and Daniel Patrick Moynihan (D-N.Y.), told reporters on Capitol Hill that good information could help prevent a public panic. But it was left unclear whether there is a plan to stem a Y2K panic.

The report said telecom carriers will spend nearly $3 billion on Y2K upgrades. Overall, it is predicted U.S. firms will pay more than $50 billion to prevent computer disruptions. But that does not necessarily guarantee success. Because of the interdependency of telecommunications and information services around the world, a Y2K problem in one country could wreak havoc on others.

While Congress gave wireless firms and other U.S. companies limited liability from Y2K problems, it remains unclear to what extent carriers will have legal exposure overseas.

The committee lists the following as Y2K concerns:

If left unremediated, Y2K poses a range of risks to telecommunications globally. Basic call processing may be unaffected immediately, but there could be other problems, including limited or blocked service due to degraded operations; problems with service billing; problems with network maintenance capabilities; problems with network operator interfaces, such as incorrect date or day-of-week displays; and features available on some customer premises equipment, such as date-related call-routing, may fail.

Legal impediments may challenge international call delivery. Many countries prevent international carriers from working around the host country’s network via satellite or other means. If a country experiences a serious Y2K disruption in communications, these legal impediments may prevent international carriers from delivering calls.

There has been no attempt to assess whether the rush to implement Y2K fixes on a global scale will have a lingering impact on the stability of global communications over the next year.

Unpredictable infrastructure failures, changes in consumer behavior, or CPE/private network problems could adversely impact telecommunications.

Full interoperability between compliant and non-compliant elements and their impact on the public switched telephone network remains unknown.

The impact of network congestion caused by increased call volume and ad hoc testing could be problematic.

Unexpected thresholds might be encountered in lab-tested software and cause network stability problems.

The lagging Y2K readiness of small- and medium-sized domestic carriers could adversely impact services in rural communities.

Limited information is available on the status of international carriers’ efforts, and test results do not build confidence.

“It’s a mixed bag when it comes to economic implications,” said Dodd.

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