Powell explained to the committee that long-distance service providers were required to give enough notice before ending service to ensure an orderly transition. However, he stated, other carriers, including cable service providers and Internet backbone providers, were not covered under the same provision of the Communications Act.

"One source of tension is conflict between the bankruptcy laws and the communications laws," Powell told the committee. "It is not always entirely clear that the bankruptcy judge would necessarily accept our protestations of the need for discontinuance, and might nonetheless order a shutdown."

Senator Ernest Hollings (D-South Carolina) asked Powell to provide him with a request for expanded authority that Congress could act upon before the fall recess.

Backbone of the Internet

WorldCom, which filed for Chapter 11 bankruptcy protection earlier this month after revealing a major accounting fraud, owns, through its UUNET subsidiary, a significant portion of the Internet backbone.

According to Yankee Group senior analyst Seth Libby, although precise measurement of Internet traffic is virtually impossible, UUNET appears to account for between 30 and 50 percent of traffic at any time. In addition, WorldCom provides other Internet services such as Virtual Private Networks, Web hosting and broadband access.

Shutdown of WorldCom's network could pose serious problems for Internet users. Will Stofega, research analyst at IDC, told NewsFactor, "It would be just like if (interstate highway) I-95 shut down and everyone had to take the old Route 1. There would be traffic jams, service degradation -- real problems. You might not get your e-mail."

Yankee Group's Libby pointed out that many UUNET customers have made backup arrangements. Unless service was shut down suddenly, he said, service degradation would probably be inconvenient rather than disastrous. "It would be like trying to log onto an Internet news site after 9-11," he told NewsFactor.

Shutdown Unlikely

However, while a UUNET shutdown is possible, no one is predicting that it will happen. WorldCom CEO John Sidgmore told the Senate committee the company was not planning to cut services. Analysts were also skeptical that WorldCom would close down its data network. IDC's Stofega argued that the FCC, whatever its current statutory authority, is unlikely to allow massive disruption to Internet service. (continued...)

1  |  2  |  Next Page >