The Y2K problem
Some of the computer systems in use today customarily process the year portion of any date as two digits (thus 1998 becomes 98). It is suspected that systems that employ this form of notation will mistake dates in the 2000s for their counterparts in the 1900s, precipitating system shutdowns, malfunctions and a host of other problems.

For Example, in the finance sector, interest might be calculated as a negative figure. In the manufacturing sector, product warranties could be deemed no longer valid. In the retail sector, credit cards may suddenly expire.

In order to prevent such problems it will be necessary to overhaul system architecture, revise data, or take similar steps. Identifying and correcting trouble spots and testing solutions will however require considerable amounts of time and money, since dates are an ubiquitous part of any computer system.

(Note:) The British committee dealing with the Y2K problem estimates the global bill will total $1.56 trillion.

Info-communications networks are also highly vulnerable because they use a wide range of computer-based systems. If such networks are to be kept in running order, appropriate strategies will need to be implemented to deal with the bug.

How the Y2K Problem Happened
The Y2K problem originated in the processing of the year part of dates appearing as a double digit. The following historical reasons are generally cited as to why this happened:

-	In North America and Europe, where the computer industry emerged, the year has long been customarily expressed as two digits in MM/DD/YY format.
-	In the 1950s through the 1970s, hardware was expensive, so users and manufacturers had a common interest in conserving memory and disc space and boosting processing speed.
-	The swift spread of the computer resulted in a rapid proliferation of user programs and data, which could not be easily revised for reasons of time and cost.
-	Even where systems were upgraded, a gradual changeover was made to new software still compatible with the existing system. As a consequence, vestiges of the older software still remained.

Three Points That Need to Be Recognized in Dealing with the Y2K Problem

1. The Y2K problem is serious.
   The reasons the Y2K problem is so serious may be summed up as follows:
   

   1.)	It is of global concern, affecting as it does any and all industries that use computers.
   2.)	If nothing is done about the problem, computers will may malfunction in the year 2000.
   3.)	The computer has penetrated to every corner of business these days, from providing service and dealing with the customer, to processing paperwork and communicating in-house. In light of this fact, it is all too likely that the Y2K problem will have an immense impact on a vast range of corporate activity.

2. Fixing the Y2K problem will be no easy task.
   Here are two of the major problems that have been identified with respect to fixing the Y2K problem:
   

   1.)	Although any solution will not lead directly to any increase in corporate profits, a huge investment of time and money will be required nonetheless.
   2.)	The cause of the bug itself is quite straightforward: the processing of year identification data as two digits. But function, performance and operating environment all differ from computer system to computer system, so the extent of the problem, the deadline for dealing with it and the exact correction will likewise vary considerably.

3. Prompt action is needed.
   Prompt action is needed for the following reasons:
   

   1.)	The deadline for any correction is the end of 1999 at the very latest. The solution cannot be postponed to the year 2000 or beyond.
   2.)	For some systems, like those that handle data for several years ahead or use a non-calendar year, a correction that comes just before New Year 2000 will be too late.
   3.)	Computer-dependent sectors of industry as a whole could well have a hard time securing the necessary system engineering expertise to deal with the problem.

Examples of How the Y2K Problem could Disrupt Telecommunications

1. Possible effects on telecommunications services
   In the case of services like fax or mail, you may not be able to reserve transmission for a later date if the service control system cannot handle dates in the 2000s. Or the date could be mistaken for one in the 1900s, so the document will not go out properly.
   
   
   
2. Possible effects on billing
   

   1.)

   The auxiliary system for working out the cost of a call on the basis of duration may be unable to properly calculate the length of a call running over from 1999 into the year 2000. (It could either give a negative value or come up with an astronomical figure, so that the customer will either be billed improperly or cannot be billed at all.)

   
   

   2.)

   If "00" (indicating 2000) is mistaken for 1900, and the system does not have a calendar for that year, the calendar for 1999 may be substituted instead. In that case, regular business days and holidays may become mixed up when determining whether or not to apply holiday discount rates, resulting in erroneous billings.

   
   
3. Possible effects on network management systems
   Say the management system for a communications facility receives data which includes the date and time of an accident or breakdown. The information will not be properly processed, and the system will malfunction.