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The FCC should set rates for video relay service (VRS) and IP rel...

The FCC should set rates for video relay service (VRS) and IP relay using a price cap approach like that used for incumbent LECs, 7 equipment and service providers told the FCC. The FCC had sought comment on how…

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providers of telecom relay services (TRS) are compensated. As in the price cap regime, “the rates for VRS and IP Relay would be capped for a minimum of three years, during which time the rates would be adjusted upward annually for inflation… and downward to account for efficiency gains,” the providers suggested. The filing said price caps would create “incentives for all VRS and IP Relay providers to lower costs,” simplifying rate making. The cap should be set for a minimum of 3 years so providers have “predictability about revenue to allocate money to programs that will reduce costs in the future such as hiring and training more interpreters,” providers said. The filing was signed by Sprint Nextel, Sorenson Communications, Snap Telecom, Communication Access Center for the Deaf & Hard of Hearing, Communication Service for the Deaf, GoAmerica and Hands on Video Relay Service. Verizon said the FCC should modify the ratemaking for VRS, IP Relay and Speech-to-speech relay by setting “a base rate and then [making] upward adjustments for inflation and any exogenous costs.” Six consumer groups said TRS providers should be compensated for “basic operational,” costs, “properly allocated executive compensation and “reasonable costs associated with marketing and outreach.” All these areas are essential to ensure service availability, said the filing by Telecom for the Deaf & Hard of Hearing, Assn. of Late- Deafened Adults, National Assn. of the Deaf, Deaf & Hard of Hearing Consumer Advocacy Network, Cal. Coalition of Agencies Serving the Deaf & Hard of Hearing, and Hearing Loss Assn. of America. TRS providers need enough money to “build the facilities and hire the staff necessary to meet the Commission’s speed of answer requirements,” they said. Providers should be compensated for the cost of certified deaf interpreters, research and development and lobbying, the consumer groups said. The Fla. PSC asked the FCC to refrain from requiring states to pick up part of VRS and IP Relay costs until outstanding issues are settled, including resolution of costly IP Relay fraud. Both services are compensated by Interstate TRS Fund but the FCC has indicated that’s temporary, with intrastate costs perhaps moving to the states, the PSC said. “If a decision is made to require states to assume intrastate VRS and IP Relay costs, the FCC must allow time for states to make legislative changes,” the Fla. regulators said. The comments were filed Oct. 30.