Bell Atlantic Reminds Us Y2K Movie is Fiction : LUSENET : TimeBomb 2000 (Y2000) : One Thread

The following is Bell Atlantic's reassurance...then a copy of their SEC filing from November 1999. Somehow I am not reassured.

(Fair Use: For Educational/Research Purposes Only)

Friday November 19, 4:54 pm Eastern Time

Company Press Release

SOURCE: Bell Atlantic

Bell Atlantic Reminds Customers That Y2K Movie Is Fiction - Not Fact; Company Says Its Network Is Ready for the Year 2000

NEW YORK, Nov. 19 /PRNewswire/ -- BACKGROUND -- NBC plans to air a movie titled ``Y2K'' that depicts widespread chaos and damage caused by the millennium date change on Jan. 1, 2000. The following response should be attributed to SKIP PATTERSON, executive director of Bell Atlantic's Year 2000 Program Office:

``The movie is only entertainment, perhaps inspired by H. G. Welles' 'War of the Worlds,' but it's important to remember that it is fiction -- not reality. In fact, Bell Atlantic's network and systems are ready for the Year 2000.

``After three years of preparation and thorough testing of our systems, we are very confident that phones will ring, calls will go through and data and voice messages will be transmitted.

``We're reassuring customers that it's not necessary to make test calls around midnight on New Years' Eve.''

SOURCE: Bell Atlantic

November 10, 1999

BELL ATLANTIC CORP (BEL) Quarterly Report (SEC form 10-Q)

OTHER MATTERS Year "2000" Update

We are now in the final stages of our program to evaluate and address the impact of the Year 2000 date transition on our operations. This program has included steps to:

. inventory and assess for Year 2000 compliance our equipment, software and systems;

. determine whether to remediate, replace or retire noncompliant items, and establish a plan to accomplish these steps;

. remediate, replace or retire the items;

. test the items, where required; and

. provide management with reporting and issues management to support a seamless transition to the Year 2000.

STATE OF READINESS For our operating telephone subsidiaries, centralized services entities and general corporate operations, the program has focused on the following project groups: Network Elements, Applications and Support Systems, and Information Technology Infrastructure. Our goal for these operations was to have our network and other mission critical systems Year 2000 compliant (including testing) by June 30, 1999 and we substantially met this goal. What follows is a more detailed breakdown of our efforts to date.

. Network Elements

Approximately 350 different types of network elements (such as central office switches) appear in over one hundred thousand instances. When combined in various ways and using network application systems, these elements are the building blocks of customer services and networked information transmission of all kinds. We originally assessed approximately 70% of these element types, representing over 90% of all deployed network elements, as Year 2000 compliant. As of November 1, 1999, we have completed the required repair/replacement of virtually all network elements requiring remediation.

. Application and Support Systems

Approximately 1,200 application and systems support (i) the administration and maintenance of our network and customer service functions (network information systems); (ii) customer care and billing functions; and (iii) human resources, finance and general corporate functions. We originally assessed approximately 48% of these application and support systems as either compliant or to be retired. As of November 1, 1999, we have successfully completed the required repair/replacement of virtually all mission critical application and support systems.

. Information Technology Infrastructure

Approximately 40 mainframe, 1,000 mid-range, and 90,000 personal computers, related network components, and software products comprise our information technology (IT) infrastructure. Of the approximately 1,350 unique types of elements in the inventory for the IT infrastructure, we originally assessed approximately 73% as compliant or to be retired. As previously reported, we have successfully completed remediation/replacement of all mission critical elements earlier this year.

Year "2000" Update - continued

Our project to remediate/replace or retire mission critical systems supporting buildings and other facilities used by the operating telephone subsidiaries, such as HVAC, access control and alarm systems, is now complete and our effort to remediate/replace or retire any other Bell Atlantic mission critical system used by those subsidiaries is virtually complete. Remediation/replacement or retirement of nonmission critical systems, where applicable, and supplemental testing and verification/correction activities, for both mission critical and non mission critical systems, are likely to continue throughout the balance of 1999.

For our other controlled or majority-owned subsidiaries, including Bell Atlantic Mobile, our Iusacell subsidiary and our directory companies, the inventory, assessment and remediation/replacement efforts for mission critical systems is substantially complete, and testing activities continue.


. Vendors

In general, our product vendors have made available either Year 2000-compliant versions of their offerings or new compliant products as replacements of discontinued offerings. The compliance status of a given product is typically determined using multiple sources of information, including our own internal testing and analysis. However, in some instances certification is based on detailed test results or similar information provided by the product vendor and analysis by us or contractors specializing in this type of review. We are also continuing Year 2000-related discussions with utilities and similar services providers. Although we have received assurances and other information suggesting that substantially all of our primary services providers have completed or are well along in their respective Year 2000 projects, we do not usually have sufficient access to or control over the providers' systems and equipment to undertake verification efforts as to such systems and equipment, and as a general matter, it would be impractical to do so. We also have participated in interoperability testing of various mission critical network elements, purchased from a number of vendors, through the Telco Year 2000 Forum, an industry group comprised of leading local telecommunications services companies. We intend to monitor critical service provider activities, as appropriate, through the remainder of 1999.

. Customers

Our customers remain keenly interested in the progress of our Year 2000 efforts, and we anticipate increased demand for information, including detailed testing data and company-specific responses. We are providing limited warranties of Year 2000 compliance for certain new telecommunications services and other offerings, but we do not expect any resulting warranty costs to be material. We are also analyzing and addressing Year 2000 issues in customer premise equipment (CPE), including CPE that we have sold or maintained. In general, the customer is responsible for CPE. However, customers could attribute a Year 2000 malfunction of their CPE, whether or not sold or maintained by us, to a failure of our network service. While network issues regarding E-911/911 are included in the "State of Readiness" discussion above, we also have a separate effort to identify and address Year 2000 issues for CPE and other equipment that we maintain for Public Safety Answering Points (PSAPs) which is used in connection with the provision of E-911/911 and related services. Our project to repair and replace E-911/911-related CPE that we maintain for various PSAPs to provide Year 2000 compliance of that CPE is virtually complete.

. Interconnecting Carriers

Our network operations interconnect with domestic and international networks of other carriers. If one of these interconnecting carrier networks should fail or suffer adverse impact from a Year 2000 problem, our customers could experience impairment of service. We have participated in various internetworking testing efforts, as a member of the Association for Telecommunications Industry Solutions (ATIS), the Cellular Telecommunications Industry Association (CTIA) and the International Telecommunications Union (ITU). We intend to monitor the activities of the primary interconnecting carriers through the remainder of 1999.

Year "2000" Update - continued


From the inception of our Year 2000 project through September 30, 1999, and based on the cost tracking methods we have historically applied to this project, we have incurred total pre-tax expenses of approximately $211 million, and we have made capital expenditures of approximately $153 million. For 1999, we expect total pre-tax expenses for our Year 2000 project not to exceed $125 million (approximately $89 million has been incurred through September 30, 1999) and total capital expenditures not to exceed $100 million (approximately $73 million has been made through September 30, 1999). We anticipate that the balance of the costs incurred for 1999 will be primarily attributable to additional testing and verification/correction, rollover transition management, contingency planning and repair/replacement of non-mission critical systems. These cost estimates have been included in our earnings targets, but should not be used as the sole gauge of progress on our Year 2000 project or as an indication of our Year 2000 readiness.

We have investments in various joint ventures and other interests. At this time, we do not anticipate that the impact of any Year 2000 remediation costs that they incur will be material to our results of operations.


The failure to correct a material Year 2000 problem could cause an interruption or failure of certain of our normal business functions or operations, which could have a material adverse effect on our results of operations, liquidity or financial condition; however, we consider such a development remote. Due to the uncertainty inherent in other Year 2000 issues that are ultimately beyond our control, including, for example, the final Year 2000 readiness of our suppliers, customers, interconnecting carriers, and joint venture and investment interests, we are unable to determine at this time the likelihood of a material impact on our results of operations, liquidity or financial condition due to such Year 2000 issues. However, we are taking appropriate prudent measures to mitigate that risk. We anticipate that, in the event of material interruption or failure of our service resulting from an actual or perceived Year 2000 problem within or beyond our control, we could be subject to third-party claims.


As a public telecommunications carrier, we have had considerable experience successfully dealing with natural disasters and other events requiring contingency planning and execution. Our Year 2000 contingency plans are built upon our existing Emergency Preparedness and Disaster Recovery plans.

We will continue to fine-tune and test our corporate Year 2000 contingency plans to help ensure that core business functions and key support processes will continue to function without material disruption, in the event of external (e.g. power, public transportation, water), internal or supply chain failures (i.e. critical dependencies on another entity for information, data or services). Individual business unit contingency plans for Year 2000 are being integrated and coordinated under an enterprise-wide command and control structure.


I do have a question. What does this mean...? " We anticipate that, in the event of material interruption or failure of our service resulting from an actual or perceived Year 2000 problem within or beyond our control, we could be subject to third-party claims." Specifically, what is a "perceived Year 2000 problem" that causes a material interruption or failure? Anybody?

-- Casey DeFranco (, November 20, 1999


Well isn't that special, how nice of them to remind us!

What the hell does this movie have to do with Bell Atlantic anyway? Either the phones will work or they won't work, the movie isn't going to change that! I suppose they are afraid we will hoard phone calls or something?

Hey Mr. Skip Patterson, I don't need you telling me how to watch a movie, so take your friendly reminder and shove it.

-- Hawk (flyin@high.again), November 20, 1999.

>What does Bell Atlantic care about the movie?

Excellent question. We have entered the time of weirdness. The Feds and the Corporate oligarchs have wound up the PR dolls and now they can't turn them off!

-- cgbg jr (, November 20, 1999.

A rational explanation for making Y2K preparations UO

Stan Faryna

Got 14 days of preps? If not, get started now. Click here.

Click here and check out the TB2000 preparation forum.

-- Stan Faryna (, November 20, 1999.

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