' AT&T disconnects vintage net service
'From: Ralph Daugherty <ralph@ee.net> vr 21:35
Subject: AT&T disconnects vintage net service
I ran across something interesting in the Dec. 7 Federal Computer Week paper edition. The article is at:
AT&T disconnects vintage net service www.fcw.com/pubs/fcw/1998/1207/fcw-polatt-12-7-98.html
I've read about X.25 for a number of years and know enough from what I've read that it was a heavily used communications protocol. So when I read:
'AT&T officials told agencies last month that the company will no longer offer a 20-year-old packet-switching telecommunications service to federal users of the FTS 2000 contract and will not upgrade the existing service for Year 2000 compliance.'
'A spokeswoman for AT&T Government Markets said the company was "never a dominant player" in the X.25 market, and it has decided to stop offering the service. She said AT&T will instead offer federal X.25 users incentives to switch to its frame relay service or its Off-Site Access to Servers and Intranet Solutions (OASIS) package for high-speed access to agency local-area network resources.'
'Agencies using AT&T's X.25 service will have to switch within a year because the service will no longer operate after 2000. "We are not using that platform anymore, so obviously there is no point in upgrading for Year 2000 compliance," the spokeswoman said.'
I couldn't quite decide whether AT&T was using Y2K as an excuse to drop a communications service in which it was not competitive and try to move customers to a frame-relay service in which it might have an advantage. I thought it odd that AT&T's X.25 communications had a Y2K problem severe enough to cause AT&T to dump it rather than fix it. Or was it just a ploy? Reading on, I was shocked to see:
'Jim Payne, Sprint's assistant vice president for FTS 2000, said the government operates X.25 installations mostly in areas in which digital facilities are unavailable. "These agencies have had the rug pulled out from under them," Payne said. "We think we are going to book every piece of business that AT&T has left on the floor. We are supporting X.25 through the Year 2000 and beyond."'
'Arnold Bresnick, associate chief information officer for policy at the USDA, said his agency runs more than 1,000 X.25 circuits throughout all its bureaus and offices. "Clearly it's a concern because it forces us to decide on alternative means of service and to develop a time line for that," Bresnick said of AT&T's announcement. "This doesn't strike me as an emergency, but we are proceeding with all due speed."'
'X.25 will be a mandatory service on FTS 2001, the follow-on to the existing contracts that is scheduled to be awarded later this month, Toker said. AT&T will have to offer the service -- apparently through a subcontractor -- if it wins an FTS 2001 contract. Bresnick said he has not yet decided how the USDA should respond to AT&T's announcement. He said it may behoove the agency to wait and see the results of the FTS 2001 contract awards.'
"It's a little puzzling at this point because even though AT&T is saying they are pulling out of X.25, it is a mandatory requirement in FTS 2001," Bresnick said. "If AT&T is a viable bidder, then it will have to provide X.25 service. So I think it's premature to take any action."
Not only was AT&T leaving Federal agencies such as the Coast Guard, the National Oceanic and Atmospheric Administration, the Agriculture Department and the Environmental Protection Agency in the lurch, with its competitor Sprint only too happy to pick up the business, but AT&T was discontinuing a service that is a required capability for a multi-billion dollar contract it was bidding on against Sprint and MCI. And I was not the only one puzzled. So was the CIO of the Agriculture Department.
Then the first ramification of AT&T dropping X.25 rather than remediate it for Y2K:
Sprint wins FTS 2001, Part 1 www.fcw.com/pubs/fcw/1998/1221/fcw-newssprint-12-21-98.html
'The General Services Administration on Friday awarded Sprint the first of two contracts under the $5 billion FTS 2001 program, a move likely to reduce prices and shift many agencies to new providers.'
'GSA will award a second contract by mid-January, Fischer said. Both contracts carry a minimum revenue guarantee of $750 million. Sprint, along with AT&T, was an incumbent on FTS 2000. Sources said Sprint beat out AT&T and MCI for the first FTS 2001 contract.'
'Industry analysts and sources called GSA's selection of Sprint as the Round One winner a real setback for AT&T, which handles 76 percent of the traffic on FTS 2000. An industry executive intimately familiar with AT&T Government Markets called the Sprint award "absolutely devastating to AT&T.''
'Former FTS Commissioner Bob Woods, now president of Federal Sources Inc., said, "AT&T is obviously going to lose business" as a result of the award to Sprint.'
'Fischer said the award was a best-value selection based on price and on Sprint's superior technical approach, the strength of its team, its billing system and other considerations.'
Could we read "Sprint's superior technical approach and other considerations" as Sprint's ability to support X.25 service in the year 2000 while AT&T has chosen not to? AT&T risked a $5 billion contract, which it had previously held 76% of the business, by dropping the X.25 communications service which was a requirement in the contract. They lost Part 1 of the contract and left Federal agencies puzzled and scrambling to switch their X.25 service to Sprint even before the new contract was awarded to Sprint. All because they couldn't cope with making their X.25 communications service Y2K compliant. And they paid the price within two weeks of making the announcement.
Ralph |