FCC Adopts Interim Rates for VRS

29 06 2010

Folks..

The Interim Rates for VRS are finally out…

Basically the FCC Order rejected the NECA’s proposed rates and adopted the following interim rates for VRS. 

Rates

New Tiered Rates:

Tier I      $6.24
Tier II     $6.23
Tier III    $5.07

Past (current) Tiered Rates were:

Tier I    $6.70
Tier II   $6.43
Tier III  $6.24

NECA’s proposed rates were:

Tier I     $5.78
Tier II    $6.03
Tier III   $3.90

Interim means temporary.   This is for one year.    The final rates will be decided after all the comments based on past and future comments from all the comments that have and will address VRS rates. 

At any rate, these rates seem to be reasonable for all concerned – they’re what I would call "workable rates" pending future rates.  

Side note: according to the DebtWire, this seems to be reasonable even for SorensonVRS at Tier III rate as DebtWire indicated that if rates are above $4.90, SVRS will be able to pay its debt obligations and still reap about 140 Million Dollars a year as profit.  

eyes open & thumbs up,

Ed

Long Link: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-10-115A1.pdf



Canada Assoc of the Deaf Submits Comments

8 06 2010

Folks…

CAD – not unlike NAD – submit its comments along with Sign Relay Canada on FCC’s ruling that no call centers outside of USA shall provide VRS for USA.  

CAD Comments

Comments indicate that despite more than 8 years of lobbying by CAD, and other organizations as well as individual, Canada still does not have VRS.   I sincerely hope that Canada government ultimately understand the underlying needs of deaf-hoh in telecommunications access and realize that VRS is the best service for the deaf-hoh.  I feel the pain of deaf Canadians as I went thru first 20 years of my life with no TTYs let alone relay service (no, I am not that old ;-)

Quotes: 

"..recently cracked-down on ineligible calls originating in Canada, there is little consistency or clarity in the implementation of the relevant rules; for example, some providers still accept calls originating in Canada as long as the callee is located in the U.S., other providers do not. Thus, the Commission needs to set and enforce a more comprehensive policy regarding the eligibility of VRS calls that originate outside the U.S."

Below is reference to establishing call centers in Canada.  

"..there has been an immediate siphoning of the available pool of interpreters in the affected community as these skilled professionals are attracted to the salaries, security, and other benefits offered by VRS providers. Hundreds of requests for community interpreting services must be turned down each year as a consequence of this drain upon the supply of interpreters. We know of dozens of cases in which Deaf Canadians have been forced to leave school and post-secondary institutions, have lost jobs or job interviews, have been denied important medical services including mental health or substance abuse treatments, and have missed out on meetings relating to vital social supports, because interpreters are no longer available once VRS call centres have been established in their region."

Wow – these are very strong words, indeed.   In the early years of VRS, USA experienced the same thing – but not anymore now – well – at least not as much anymore.  

"As it stands now, American VRS is a predator that is doing profound damage to the lives of Deaf Canadians without any offsetting benefits to us."

Now that is generalizing and not fair to VRS industry.  To my knowledge, only one VRS provider have call centers in Canada and that’s SorensonVRS.   SVRS although the largest VRS provider is most certainly not representing USA in VRS industry.  I wish CAD comments would list the VRS providers that have call centers in Canada so other VRS providers who do not have call centers in Canada will not be damaged by this generic accusation.  

Finally this quote:

"For the above reasons, the CAD and SRC recommend that either American providers of VRS be required to locate all of their call centres in the U.S., or that the Commission permit the extension of reimbursable VRS calls to include calls originating and terminating in Canada that are made through the providers that have established call centres in this country."

I agree with CAD that American Providers be required to locate all the call centers.   Indeed, VRS providers should report to the FCC all listed call centers.  

Where CAD says FCC should permit extension of reimbursable VRS calls to originating and terminating in Canada? What this is saying is USA should permit USA funds to pay for Canada VRS.  Oh,that can amount to many millions of dollars annually!   Even though Canada is friend of ours, I think Canada should pay for its own VRS, not USA.

However, I can say that America VRS providers would be happy to provide VRS if Canada is willing to pay for the service.  

eyes open & thumbs up..

Ed

Long Link:  http://www.prodnet.www.neca.org/publicationsdocs/wwpdf/6410cad.pdf



Letter to FCC from Congress Folks

3 06 2010

Folks…

Check this out.    Got this letter from an aide of a congressman of which I appreciate.  

29 HR Reps Letter

Quotable Quotes:

"We note with concern that the Commission intends to shift from the long-term compensation method it adopted unanimously to a "cost plus" method which may not account for the real costs of providing VRS.  It is also troubling that the proposed compensation rate structure could result in certain VRS providers being paid as much as 50% more than others for the same service."

"We do not see a connection, however, between fraud issues and the rate structure. If the Commission does see a connection, we would be interested to hear how the Commission believes the proposed rate changes address that problem."

I am puzzled by the first paragraph.    FCC released the cost rates and asked for comments which means the FCC wants to hear from commentators so the decision has not yet been made.   I believe FCC allows profit margin of about 11.25%. 

On the last paragraph, there is, to my best of my knowledge, no FCC public notice that ties fraud to rates.   The only thing I can recall is the farewell letter from Tom Chandler (he left FCC to join DOJ) which mentioned that.  If I am wrong, kindly correct me on this.  

One other observation is that first two signatures were from Utah.  

At any rate, FCC will have to respond to that; especially with 29 HR Reps.

eyes open & thumbs up,

Ed

Long Link:  www.edsalert.com/wp-content/uploads/2010/06/Signed-Chaffetz-Bishop-Ltr-29-total-signers-2.pdf



FCC’s Declaratory Ruling, Order, and Notice of Proposed Rulemaking on VRS

28 05 2010

All..

This one has a short window of opportunity to comment.   14 days for Section V – A, Section V – B and V -E5, then 21 days for all other issues; these public notices need to be first published in federal register before the 14 and 21 days take effect so little more time for anyone to comment.    I would love to know why each different deadline dates for each sections?   I am sure FCC has its own reasons for that.

FCC Statement

Basically, FCC wants to clarify and explore few issues.   FCC wants to address whether reimbursable rates should apply for certain types of calls using VRS or not.

Before I go on and outline, I want to point out one interesting interpretation by the FCC that – frankly I find the statement somewhat offending.

"The statute and regulations provide that TRS users cannot be required to pay for the costs associated with relaying a call.  Therefore, TRS users are not strictly "consumers" or purchasers of a service; rather they are the principal beneficiaries of a federal program that gives access to the telephone system." 

Hey, that sounds like welfare. Does not meet the definition of ADA which Title IV (relay regulations) is part of.  Anyway, this one I will have to chew on.  Remember TTY relay service was based on using existing telephone network; VRS uses Internet (not unlike VoIP using Internet).  Does that make difference, I think it does, but will discuss this particular issue at another time.     

On declaratory ruling: FCC wants to "reiterate that Interstate TRS Fund payments may be suspended to providers that do not submit to audits."  

That is what teeming masses who at least understands the basic budget will agree with the underlying idea that VRS providers should open their books to FCC/NECA.   However, a few providers have problem sharing their full books with FCC.  So it is gonna be interesting how FCC will enforce that.  I support that, though, and know many of you do, too.

Order:  adopt the interim rule "to make providers more accountable by requiring senior executives to certify compliance with our regulations under penalty of perjury."  

Good rule, but I thought that was already done.  I will have to chew on this as well.  This interim rule, however, is NOT asking for comments, and basically said will enforce it without due process.   "We adopt this interim rule without notice and comment, pursuant to 5 U.S.C. § 553(b)(3)(B)."  

Notice of Proposed Rulemaking: 

A.  VRS Call Centers outside of USA not allowed.  This one makes sense.  

B. VRS CAs working from home.   Ah, this is a sticky issue for a couple VRS providers. I do not support the concept of VIs working from home; too many possible issues with that.  Security measures are most effective in a call center instead of from home.  

C.  Basically FCC is outlining procedures on suspending or delay payments to a TRS provider if TRS provider failed to provide adequate verification.   This is area where TRS providers will need to comment.  Good one this one. 

D.  FCC is asking for comments on these type of calls.

  • International calls
  • Caller’s Face does not appear on screen; use of privacy screen or Idle calls.  If VRS caller does not want to show his/her face, use TTY relay service is what I think.  
  • Calls that involve remote training.  Ongoing discussion on this; should it be VRI, not VRS and the one providing remote service should pay for that?  Same old argument where if Title I or II fails, then should Title IV take over, or go thru due process of complaining to DOJ which has historically not taken high priority on telecommunication issues that fall under DOJ.

E.  Procedures in detecting and stopping the billings of illegitimate calls

1.  Automated Record of the VRS calls.    This one, to me, should already be in the rules based on existing telephone regulation, but guess good to emphasize that.  
2. Data must be filed with the Fund Administrator to support payment claims.   This also should already be in regulation, so guess one or few providers are not doing enough of that.
3. Requiring providers to submit info on new and existing call centers on a periodic basis.  Very good!
4. This refers to white label company.    Read this carefully.   I believe there is other option for that. 
5. Offer whistleblower protections for VRS CAs and employees of TRS providers.    Very good and should be supported.
6. Transparency and the disclosure of provider financial and call data.    This will be a sticky problem for a few VRS providers, however, I think that is needed to help FCC reach reasonable and balanced rates.  
7.  Provider Audits.  Self explanatory by now…
8.  Provider certification must meet criteria as listed or be subject to penalty of perjury. 

As always, feel free to comment.   This is an important notice from FCC. 

eyes open & thumbs up,

Ed B

Long Link: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-10-88A1.doc