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Sorenson Slams ZVRS Proposals as Seeking VRS Provider-Specific Rates, 'Double-Dipping'

Sorenson Communications criticized ZVRS video relay service proposals to the FCC as seeking "de facto provider-specific VRS rates, both through its proposed tier rates and volume levels and in its contention that it must be permitted to 'double-dip' the tiers…

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by applying them separately to each of its operating subsidiaries." Sorenson was reacting to filings this month in docket 10-51 by ZVRS, parent of CSDVRS and Purple Communications. ZVRS cited no commission precedent permitting "competitors offering the same services in the same geographic areas to charge different rates when the only ascertainable difference in underlying costs is that one provider is more efficient," said a Sorenson filing posted Thursday. "Yet that is exactly what ZVRS proposes -- that the Commission adopt rate tiers constructed deliberately to provide higher compensation to ZVRS, the second largest operator of VRS across the country, even though the cost differences on which ZVRS bases its request are entirely related to efficiency, i.e., claimed economies of scale." Sorenson said there's "simply no way that ZVRS’ plea for special treatment based on its own inefficient cost structure can be reconciled with [Communications Act] Section 225’s requirement that TRS [telecom relay service] be provided 'in the most efficient manner.'" ZVRS didn't comment. A draft FCC order would set new VRS compensation rates; the current rates expire Friday (see 1706280038).