FCC Still Weighing New Rates for VRS and TRS, With End of Funding Year Nearing
The FCC is still considering how to address rates for video relay services and other telecom relay services, with the VRS/TRS funding year expiring June 30, parties to the proceeding told us. "As far as I can tell, they're still trying to figure out what they're going to do," said an industry representative Wednesday. Both Sorenson Communications and smaller VRS rivals -- which have made conflicting rate proposals -- are concerned about possible agency actions. "We are continuing to work to resolve the issues," an FCC spokesman emailed.
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The industry rep said the FCC would be "hard pressed" to get all VRS and TRS rates fully in place by July 1. Others believe the agency is still trying to act by June 30, but said a later order could make new rates retroactive to July 1. That could draw retroactive ratemaking objections, particularly if providers see VRS/TRS compensation rates cut, said the industry rep, suggesting it's also possible the agency could set some rates by June 30 on an interim basis until it finalizes longer-term plans.
ZVRS Holding said June 6 the VRS item "may be headed in a direction" that will hurt its operating companies -- CSDVRS and Purple Communications -- and "frustrate any chances for meaningful competition" (see 1706080055). ZVRS senior executives continued to discuss "the financial impact" to its companies under various VRS rate scenarios, "consistent with the analysis" attached to its June 6 presentation, said a filing posted Tuesday in docket 10-51 on a call with FCC staffers. ZVRS, the No. 2 VRS provider, and the two smallest providers jointly proposed most VRS compensation rates be raised, except for the highest-volume traffic tier, largely affecting Sorenson, which would be cut further.
Sorenson is concerned about implications of VRS rates proposed in a Further NPRM and potential impact on its ability to provide functionally equivalent service to deaf and hard-of-hearing persons, a core statutory mandate. "Because the FNPRM’s proposed Tier III rates would result in a significant rate cut for Sorenson -- while increasing the rate of other VRS providers -- the result would not only be arbitrary and distort the market but would also make it difficult to continue to invest, innovate and offer new services," said a filing on a meeting with Commissioner Mignon Clyburn. The company said it submitted substantial information into the record to enable the FCC "to use a reasonable, data-driven methodology to adopt new VRS rates."
The filing appears to suggest "that Sorenson is still trying to avert adoption of the proposed data-supported VRS rates," emailed Gabrielle Joseph, chief operations officer at GlobalVRS, one of the two smallest VRS providers. "The Commission is armed with the most current cost data, and we remain hopeful the Commission will implement rate stabilization in VRS."
Convo Communications needs "retroactive compensation" of a new tiered rate to "no later than January 1, 2017" for "it to be able to begin paying back the debt it incurred to survive the resumption of the rate glide path" recently. An emergent tiered rate of $5.29 per minute for all four years would give Convo "a fair and reasonable opportunity to continue operations and allow it to invest to grow past 500,000 minutes monthly by the end of the rate plan," said a filing last week by that small VRS provider on a meeting with an aide to Chairman Ajit Pai.
Consumer groups have focused on ensuring VRS service quality. "VRS vendors must be compensated adequately," emailed Claude Stout, executive director of Telecommunications for the Deaf and Hard of Hearing. "There must be a clear distinction between what is allowed and disallowed in coverage of costs to provide VRS. The VRS vendors are not government entities, they are members of the business community, willing to do the bulk of the work that the rest of the marketplace chooses not to do. There must be a fair balance between proper use of the TRS Fund, and fairly reimbursing the vendors for their services. We now have four vendors in the market, and we do not want to see any of them leave." Consumer groups appreciate the FCC's recent decision to authorize providers to "conduct trials in skills based routing and use of certified deaf interpreters," which "will help us see improvements" in VRS service, he said.