81_FR_15038 81 FR 14984 - Structure and Practices of the Video Relay Service Program; Telecommunications Relay Services and Speech-to-Speech Services for Individuals With Hearing and Speech Disabilities

81 FR 14984 - Structure and Practices of the Video Relay Service Program; Telecommunications Relay Services and Speech-to-Speech Services for Individuals With Hearing and Speech Disabilities

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 81, Issue 54 (March 21, 2016)

Page Range14984-14986
FR Document2016-06305

In this document, the Commission modifies its four-year compensation rate plan for Video Relay Service (VRS), adopted in 2013, by temporarily ``freezing'' the rate of compensation paid from the Interstate Telecommunications Relay Services Fund (TRS Fund) to VRS providers handling 500,000 or fewer monthly minutes and directs the TRS Fund administrator to pay compensation to such providers at a rate of $5.29 per VRS minute for a 16-month period.

Federal Register, Volume 81 Issue 54 (Monday, March 21, 2016)
[Federal Register Volume 81, Number 54 (Monday, March 21, 2016)]
[Rules and Regulations]
[Pages 14984-14986]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06305]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CG Docket Nos. 10-51 and 03-123; FCC 16-25]


Structure and Practices of the Video Relay Service Program; 
Telecommunications Relay Services and Speech-to-Speech Services for 
Individuals With Hearing and Speech Disabilities

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Commission modifies its four-year 
compensation rate plan for Video Relay Service (VRS), adopted in 2013, 
by temporarily ``freezing'' the rate of compensation paid from the 
Interstate Telecommunications Relay Services Fund (TRS Fund) to VRS 
providers handling 500,000 or fewer monthly minutes and directs the TRS 
Fund administrator to pay compensation to such providers at a rate of 
$5.29 per VRS minute for a 16-month period.

DATES: Effective April 20, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Aldrich, Consumer and 
Governmental Affairs Bureau, at 202-418-0996 or email 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Structure and Practices of the Video Relay Service Program and 
Telecommunications Relay Services and Speech-to-Speech Services for 
Individuals with Hearing and Speech Disabilities, Report and Order, 
document FCC 16-25, adopted on March 1, 2016, and released on March 3, 
2016, in CG Docket Nos. 10-51 and 03-123. The full text of document FCC 
16-25 will be available for public inspection and copying via ECFS, and 
during regular business hours at the FCC Reference Information Center, 
Portals II, 445 12th Street SW., Room CY-A257, Washington, DC 20554. 
Document FCC 16-25 can also be downloaded in Word or Portable Document 
Format (PDF) at: https://www.fcc.gov/general/disability-rights-office-headlines. To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an email to [email protected] or call the Consumer and Governmental 
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (TTY).

Final Paperwork Reduction Act of 1995 Analysis

    Document FCC 16-25 does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act (PRA) of 
1995, Public Law 104-13. In addition, therefore, it does not contain 
any new or modified information collection burden for small business 
concerns with fewer than 25 employees, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4).

Congressional Review Act

    The Commission will not send a copy of FCC 16-25 pursuant to the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because the 
Commission adopted no rules therein, as defined in 5 U.S.C. 804(3). 
Rather, the Commission modified the rates applicable to compensation 
paid to VRS providers from the TRS Fund.

Synopsis

    1. In 2013, the Commission adopted a Report and Order amending its 
telecommunications relay service (TRS) rules to improve the structure, 
efficiency, and quality of the VRS program, reduce the risk of waste, 
fraud, and abuse, and ensure that the program makes full use of 
advances in commercially-available technology. Structure and Practices 
of the Video Relay Services Program, Telecommunications Relay Services 
and Speech-to-Speech Services for Individuals with Hearing and Speech 
Disabilities, CG Docket Nos. 10-51, 03-123, Report and Order and 
Further Notice of Proposed Rulemaking, published at 78 FR 40407, July 
5, 2013 (VRS Reform Order), and 78 FR 40582, July 5, 2013 (VRS Reform 
FNPRM), aff'd in part and vacated in part sub nom. Sorenson 
Communications, Inc. v. FCC, 765 F.3d 37 (D.C. Cir. 2014) (Sorenson). 
The VRS Reform Order established the rates at which VRS providers are 
compensated from the Interstate Telecommunications Relay Service Fund 
(TRS Fund) for a four-year period beginning July 1, 2013, and adopted 
structural reforms designed to establish a more level playing field for 
all VRS providers.
    2. Pursuant to the TRS rules, VRS providers submit the number of 
minutes of service they provide to the TRS Fund administrator on a 
monthly basis and are compensated for these minutes based on rates set 
annually by the Commission. The Commission currently uses a three-tier 
compensation rate structure that allows smaller providers to receive 
more compensation per minute, on average, than larger providers. A 
tiered compensation rate structure allows providers to earn a higher 
compensation rate on the initial minutes of service provided each 
month. Pursuant to the three-tiered VRS rate structure as modified in 
the VRS Reform Order, the Tier I rate (the highest rate) applies to a 
provider's first 500,000 monthly VRS minutes, the Tier II rate applies 
to a provider's second 500,000 monthly minutes, and the Tier III rate 
(the lowest rate) applies to monthly minutes in excess of 1,000,000. As 
a result, smaller providers receive more compensation per minute, on 
average, than larger providers.
    3. In the VRS Reform Order, the Commission recognized a need to 
better align VRS compensation rates with the allowable costs of this 
service, pending a further determination as to VRS compensation 
methodology. To that end, and as an alternative to immediately reducing 
rates to a level based on average costs, the Commission adopted a four-
year schedule that gradually adjusts the VRS compensation rates 
downward every six months, beginning July 1, 2013, and ending June 30, 
2017. (In document FCC 16-25, the term ``average,'' when used to 
describe multiple providers' costs, means an average of provider costs 
weighted in proportion to each provider's total minutes.) Subsequently, 
in a Further Notice of Proposed Rulemaking released November 3, 2015, 
the Commission proposed to temporarily freeze the compensation rates of 
providers handling 500,000 or fewer monthly minutes. Structure and 
Practices of the Video Relay Services Program, Telecommunications Relay 
Services and Speech-to-Speech Services for Individuals with Hearing and 
Speech Disabilities, CG Docket Nos. 10-51, 03-123, Further Notice of 
Proposed Rulemaking, published at 80 FR 72029, November 18, 2015, (VRS 
Rate Freeze FNPRM).
    4. The Commission adopts its proposal to temporarily ``freeze'' the 
compensation rates of providers handling 500,000 or fewer monthly 
minutes (the smallest VRS providers) and directs the TRS Fund 
administrator to pay compensation, subject to a possible true-up, at a 
compensation rate of $5.29 per VRS minute for the period from July 1, 
2015, to October 31, 2016.

[[Page 14985]]

This rate is applicable to a VRS provider in any month for which the 
provider submits 500,000 or fewer compensable VRS minutes for 
compensation from the TRS Fund.
    5. The record of this proceeding confirms that for each of the 
smallest VRS providers, the per-minute costs incurred or projected by 
the provider in calendar years 2015 and 2016, respectively, are higher 
than the ``blended'' compensation rate applicable to that provider in 
that year under the four-year schedule adopted in the VRS Reform Order. 
(A provider's ``blended'' compensation rate for a calendar year is the 
average of the Tier I rates applicable in the first and second halves 
of the calendar year, weighted by the provider's projected minutes for 
each half.) The individual cost information filed by the smallest VRS 
providers, which the Commission finds to be credible, while updating 
the cost data previously filed with Rolka Loube, confirms Rolka Loube's 
initial assessment that the deficits incurred by the smallest VRS 
providers may be jeopardizing their continuation of service. Further, 
the smallest VRS providers credibly argue that available financing 
arrangements will not permit them to maintain operations indefinitely 
in accordance with the Commission's minimum TRS standards while 
continuing to operate at a loss. Therefore, the Commission finds that, 
absent rate relief, it is likely that the smallest providers either (1) 
will be unable to maintain their operations in 2016 or (2) will be 
unable to continue to grow their operations significantly in the 
direction of reaching optimum levels of efficiency. As a result, the 
Commission's objective to offer such providers ``a reasonable 
opportunity to . . . reach the optimum scale to compete effectively'' 
may be undermined. See VRS Reform Order, 78 FR 40602, July 5, 2013.
    6. As the Commission has previously recognized, the presence of 
diverse providers can spur improvements in the availability, 
efficiency, and functional equivalence of VRS. Further, public interest 
considerations favor the grant of interim relief. The record confirms 
that certain service features offered by small VRS providers may be 
uniquely helpful in advancing the goal of functionally equivalent 
service for certain subsets of VRS consumers. Specialized features 
offered by the smallest VRS providers include Spanish language VRS and 
emergency alert functions for schools for the deaf.
    7. Based on these various considerations, the Commission concludes 
that it should temporarily halt the scheduled reduction in the VRS 
compensation rates applicable to the smallest VRS providers, consistent 
with its objective in the VRS Reform Order to permit smaller providers 
a reasonable opportunity to grow and to attain efficiencies comparable 
to those of larger VRS providers. Accordingly, the Commission adopts 
its proposal in the VRS Rate Freeze FNPRM to apply a rate of $5.29 per 
minute to compensation claimed by the smallest VRS providers for a 
limited period. This rate, which was in effect prior to July 1, 2015, 
is lower than the smallest VRS providers' average projected allowable 
costs for 2015 but higher than their average projected allowable costs 
for 2016. It is also lower than any individual provider's allowable 
costs for 2015. The Commission concludes that application of a $5.29 
per minute compensation rate to the smallest VRS providers will 
generally provide a reasonable level of support for the operations of 
the smallest VRS providers and will not risk providing significant 
overcompensation for such providers. In addition, application of this 
rate to the smallest VRS providers, in lieu of the previously scheduled 
rates, will not impose a heavy cost burden on the TRS Fund.
    8. Regarding the period for which this rate freeze should apply, 
the Commission adopts the proposal in the VRS Rate Freeze FNPRM for an 
adjusted compensation rate of $5.29 per minute to be effective for 16 
months, beginning retroactively on July 1, 2015, the beginning of the 
current Fund Year, and ending on October 31, 2016. This 16-month rate 
freeze allows the smallest VRS providers the opportunity to achieve 
market share growth and improvements in efficiency while benefitting 
from further implementation of structural reforms--such as the 
establishment of the ACE platform, which will address interoperability 
and other matters and is scheduled for launch this year.
    9. While rates should not be frozen indefinitely, the Commission 
agrees with a number of commenting parties that, in order to avoid 
subjecting the smallest VRS providers to a sudden drop in compensation 
upon the expiration of the 16-month period, the compensation rate for 
the smallest providers should be adjusted downward in the same 
increments previously directed in the VRS Reform Order. In other words, 
for the smallest VRS providers the ``glide path'' originally 
established in the VRS Reform Order will resume after a 16-month 
freeze. The resulting per-minute rates for the smallest VRS providers 
for the period from January 1, 2015, to the end of the four-year period 
are: (1) January 2015-October 2016, $5.29; (2) November 2016-April 
2017, $5.06; (3) May-June 2017, $4.82.
    10. In response to the VRS Rate Freeze FNPRM, a number of 
commenters urge the Commission to expand the proposed scope of the rate 
freeze beyond the smallest VRS providers. For example, some parties 
argue that VRS providers that are larger than the smallest providers, 
but significantly smaller than the largest provider, also have a need 
for rate relief based on a comparison of their costs with applicable 
compensation rates. The information provided to the Commission does not 
indicate that any VRS providers other than the smallest providers will 
have allowable costs exceeding the average compensation rate applicable 
to such providers in 2015 and 2016. The Commission recognizes that 
among the three largest VRS providers, there are substantial 
differences in per-minute costs. However, as noted in the VRS Rate 
Freeze FNPRM, the Commission previously restructured the rate tiers--
and ``froze'' the Tier II rate at $4.82 for the first three years of 
the transition period--in order to allow the smaller of these providers 
`` `a full opportunity to improve efficiencies and achieve scale.' '' 
Again, these providers have not shown that they will incur allowable 
costs in excess of their revenues in 2015 and 2016. The Commission 
notes that several parties attempt to renew claims made in prior 
proceedings alleging that the categories of allowable costs are too 
narrow to permit recovery of all reasonable VRS costs. Those claims 
were considered and rejected in the VRS Reform Order. See VRS Reform 
Order, 78 FR 40599, July 5, 2013. Further, while a number of parties 
contend that implementation of structural reforms has imposed 
additional costs, no party has submitted specific estimates or 
documentation regarding such implementation costs.
    11. In summary, while some parties contend that the compensation 
rates for currently profitable providers should be frozen, allegedly to 
prevent reductions in the quality of VRS, the Commission does not 
perceive any immediate risk that any of the larger VRS providers have 
been or will be unable to continue to provide service that meets the 
Commission's minimum TRS standards in 2015 and 2016. The Commission 
notes, however, that there is an open rulemaking on a number of broader 
VRS ratemaking proposals and issues. See VRS Reform FNPRM, 78 FR 40582, 
July 5, 2013. Some of the comments filed in response to the VRS Rate 
Freeze FNPRM address those matters, as well as raising

[[Page 14986]]

new issues regarding quality of service and the viability of future 
competition in the VRS market. To the extent relevant, the Commission 
may address these comments when it completes action on the broader VRS 
rulemaking proposals.
    12. In summary, the Commission directs the TRS Fund administrator, 
Rolka Loube, to compensate the smallest VRS providers at a rate of 
$5.29 per minute, applicable from July 1, 2015, through October 31, 
2016. More specifically, from the effective date of this Report and 
Order through October 31, 2016, the Commission directs the 
administrator to pay compensation to the smallest VRS providers at a 
rate of $5.29 per minute. Second, the Commission directs the 
administrator to pay each of the smallest VRS providers a one-time lump 
sum reflecting the difference between the compensation they would have 
received if they had been paid at a rate of $5.29 per minute and the 
compensation they actually received at the lower applicable rates, for 
all compensable calls completed during the period between July 1, 2015, 
and the effective date of document FCC 16-25. In addition, to avoid 
subjecting the smallest VRS providers to a sudden drop in compensation 
upon the expiration of the 16-month period, the Commission directs the 
administrator to pay compensation to the smallest VRS providers at a 
rate of $5.06 per minute from November 1, 2016, through April 30, 2017, 
and at a rate of $4.82 per minute from May 1, 2017, through June 30, 
2017.

Final Regulatory Flexibility Act Certification

    13. As required by the Regulatory Flexibility Act (RFA), the 
Commission has prepared the Final Regulatory Flexibility Certification 
(FRFC) as to the policies and rules adopted in document FCC 16-25. The 
Commission will send a copy of document FCC 16-25, including the FRFC, 
to the Chief Counsel for Advocacy of the Small Business Administration 
(SBA). (See 5 U.S.C. 603(a).)
    14. After consideration of the comments received in response to the 
VRS Rate Freeze FNPRM, the Commission modifies in part the four-year 
compensation rate plan for video relay service (VRS) adopted in the 
2013 VRS Reform Order. Although the Commission believes that the four-
year schedule of VRS compensation rate reductions continues to be 
justified in order to gradually move compensation rates close to a 
level close to average allowable provider costs, the Commission 
modifies the schedule as applied to the smallest VRS providers, i.e., 
those providing 500,000 or fewer compensable minutes of use of VRS per 
month. Spreading rate reductions over a four-year period was largely 
intended to provide a reasonable opportunity for the smallest providers 
to reach minimum efficient scale while benefitting from the VRS Reform 
Order initiatives, which were intended to address many of the issues 
that have made it difficult for small providers to operate efficiently.
    15. The smallest providers have achieved significant reductions in 
their per-minute costs but have yet to approach the size or efficiency 
levels of their larger rivals. Further, some small providers offer 
service features that may be helpful in advancing the goal of 
functionally equivalent service for certain subsets of VRS consumers, 
such as Spanish language speakers and deaf-owned businesses. Therefore, 
the Commission adopts the temporary, limited compensation rate 
``freeze'' proposed in the VRS Rate Freeze FNPRM. Specifically, from 
the effective date of document FCC 16-25 through October 31, 2016, the 
Commission directs the TRS Fund administrator to pay compensation to 
the three smallest VRS providers at a rate of $5.29 per minute. In 
addition, the Commission directs the administrator to pay each of the 
smallest VRS providers a one-time lump sum reflecting the difference 
between the compensation they would have received if they had been paid 
at a rate of $5.29 per minute and the compensation they actually 
received at the lower applicable rates, for all compensable calls 
completed during the period between July 1, 2015, and the effective 
date of document FCC 16-25. In addition, to avoid subjecting the 
smallest VRS providers to a sudden drop in compensation upon the 
expiration of the 16-month period, the Commission directs the 
administrator to pay compensation to the smallest VRS providers at a 
rate of $5.06 per minute from November 1, 2016, through April 30, 2017, 
and at a rate of $4.82 per minute from May 1, 2017, through June 30, 
2017.
    16. In document FCC 16-25, the Commission adopts its proposal to 
temporarily ``freeze'' the compensation rates applicable to the 
smallest VRS providers and determines, as it concluded in the Initial 
Regulatory Flexibility Analysis, that this measure will not impose any 
additional compliance requirements on small businesses and would 
temporarily ease the impact of existing VRS regulations on small 
entities by temporarily increasing the VRS compensation rate for small 
entities above the rate currently in effect. Therefore, the Commission 
certifies that the rule amendments in document FCC 16-25 will not have 
a significant economic impact on a substantial number of small 
entities.

Ordering Clause

    Pursuant to the authority contained in sections 4(i), 201(b), and 
225 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 
201(b), 225, document FCC 16-25 is adopted.

    Federal Communications Commission.
Gloria J. Miles,
Federal Register Liaison Officer, Office of the Secretary.
[FR Doc. 2016-06305 Filed 3-18-16; 8:45 am]
 BILLING CODE 6712-01-P



                                           14984              Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Rules and Regulations

                                           Services and items furnished by                         accessible formats for people with                    of service they provide to the TRS Fund
                                           physicians and other health care                        disabilities (Braille, large print,                   administrator on a monthly basis and
                                           professionals and non-hospital-based                    electronic files, audio format), send an              are compensated for these minutes
                                           entities shall be subject to the payment                email to fcc504@fcc.gov or call the                   based on rates set annually by the
                                           methodology set forth in § 136.203.                     Consumer and Governmental Affairs                     Commission. The Commission currently
                                           [FR Doc. 2016–06087 Filed 3–18–16; 8:45 am]             Bureau at 202–418–0530 (voice), 202–                  uses a three-tier compensation rate
                                           BILLING CODE 4165–16–P
                                                                                                   418–0432 (TTY).                                       structure that allows smaller providers
                                                                                                                                                         to receive more compensation per
                                                                                                   Final Paperwork Reduction Act of 1995
                                                                                                                                                         minute, on average, than larger
                                                                                                   Analysis
                                                                                                                                                         providers. A tiered compensation rate
                                           FEDERAL COMMUNICATIONS                                    Document FCC 16–25 does not                         structure allows providers to earn a
                                           COMMISSION                                              contain new or modified information                   higher compensation rate on the initial
                                                                                                   collection requirements subject to the                minutes of service provided each
                                           47 CFR Part 64
                                                                                                   Paperwork Reduction Act (PRA) of                      month. Pursuant to the three-tiered VRS
                                           [CG Docket Nos. 10–51 and 03–123; FCC                   1995, Public Law 104–13. In addition,                 rate structure as modified in the VRS
                                           16–25]                                                  therefore, it does not contain any new                Reform Order, the Tier I rate (the
                                                                                                   or modified information collection                    highest rate) applies to a provider’s first
                                           Structure and Practices of the Video                    burden for small business concerns with               500,000 monthly VRS minutes, the Tier
                                           Relay Service Program;                                  fewer than 25 employees, pursuant to                  II rate applies to a provider’s second
                                           Telecommunications Relay Services                       the Small Business Paperwork Relief                   500,000 monthly minutes, and the Tier
                                           and Speech-to-Speech Services for                       Act of 2002, Public Law 107–198, see 44               III rate (the lowest rate) applies to
                                           Individuals With Hearing and Speech                     U.S.C. 3506(c)(4).                                    monthly minutes in excess of 1,000,000.
                                           Disabilities                                                                                                  As a result, smaller providers receive
                                                                                                   Congressional Review Act
                                           AGENCY:  Federal Communications                                                                               more compensation per minute, on
                                           Commission.                                               The Commission will not send a copy                 average, than larger providers.
                                                                                                   of FCC 16–25 pursuant to the                             3. In the VRS Reform Order, the
                                           ACTION: Final rule.
                                                                                                   Congressional Review Act, see 5 U.S.C.                Commission recognized a need to better
                                           SUMMARY:   In this document, the                        801(a)(1)(A), because the Commission                  align VRS compensation rates with the
                                           Commission modifies its four-year                       adopted no rules therein, as defined in               allowable costs of this service, pending
                                           compensation rate plan for Video Relay                  5 U.S.C. 804(3). Rather, the Commission               a further determination as to VRS
                                           Service (VRS), adopted in 2013, by                      modified the rates applicable to                      compensation methodology. To that
                                           temporarily ‘‘freezing’’ the rate of                    compensation paid to VRS providers                    end, and as an alternative to
                                           compensation paid from the Interstate                   from the TRS Fund.                                    immediately reducing rates to a level
                                           Telecommunications Relay Services                       Synopsis                                              based on average costs, the Commission
                                           Fund (TRS Fund) to VRS providers                                                                              adopted a four-year schedule that
                                           handling 500,000 or fewer monthly                          1. In 2013, the Commission adopted a               gradually adjusts the VRS compensation
                                           minutes and directs the TRS Fund                        Report and Order amending its                         rates downward every six months,
                                           administrator to pay compensation to                    telecommunications relay service (TRS)                beginning July 1, 2013, and ending June
                                           such providers at a rate of $5.29 per                   rules to improve the structure,                       30, 2017. (In document FCC 16–25, the
                                           VRS minute for a 16-month period.                       efficiency, and quality of the VRS                    term ‘‘average,’’ when used to describe
                                                                                                   program, reduce the risk of waste, fraud,             multiple providers’ costs, means an
                                           DATES: Effective April 20, 2016.
                                                                                                   and abuse, and ensure that the program                average of provider costs weighted in
                                           FOR FURTHER INFORMATION CONTACT:
                                                                                                   makes full use of advances in                         proportion to each provider’s total
                                           Robert Aldrich, Consumer and                            commercially-available technology.
                                           Governmental Affairs Bureau, at 202–                                                                          minutes.) Subsequently, in a Further
                                                                                                   Structure and Practices of the Video                  Notice of Proposed Rulemaking released
                                           418–0996 or email Robert.Aldrich@                       Relay Services Program,
                                           fcc.gov.                                                                                                      November 3, 2015, the Commission
                                                                                                   Telecommunications Relay Services and                 proposed to temporarily freeze the
                                           SUPPLEMENTARY INFORMATION: This is a                    Speech-to-Speech Services for                         compensation rates of providers
                                           summary of the Commission’s Structure                   Individuals with Hearing and Speech                   handling 500,000 or fewer monthly
                                           and Practices of the Video Relay Service                Disabilities, CG Docket Nos. 10–51, 03–               minutes. Structure and Practices of the
                                           Program and Telecommunications                          123, Report and Order and Further                     Video Relay Services Program,
                                           Relay Services and Speech-to-Speech                     Notice of Proposed Rulemaking,                        Telecommunications Relay Services and
                                           Services for Individuals with Hearing                   published at 78 FR 40407, July 5, 2013                Speech-to-Speech Services for
                                           and Speech Disabilities, Report and                     (VRS Reform Order), and 78 FR 40582,                  Individuals with Hearing and Speech
                                           Order, document FCC 16–25, adopted                      July 5, 2013 (VRS Reform FNPRM), aff’d                Disabilities, CG Docket Nos. 10–51, 03–
                                           on March 1, 2016, and released on                       in part and vacated in part sub nom.                  123, Further Notice of Proposed
                                           March 3, 2016, in CG Docket Nos. 10–                    Sorenson Communications, Inc. v. FCC,                 Rulemaking, published at 80 FR 72029,
                                           51 and 03–123. The full text of                         765 F.3d 37 (D.C. Cir. 2014) (Sorenson).              November 18, 2015, (VRS Rate Freeze
                                           document FCC 16–25 will be available                    The VRS Reform Order established the                  FNPRM).
                                           for public inspection and copying via                   rates at which VRS providers are                         4. The Commission adopts its
                                           ECFS, and during regular business                       compensated from the Interstate                       proposal to temporarily ‘‘freeze’’ the
                                           hours at the FCC Reference Information                  Telecommunications Relay Service                      compensation rates of providers
                                           Center, Portals II, 445 12th Street SW.,                Fund (TRS Fund) for a four-year period                handling 500,000 or fewer monthly
Lhorne on DSK5TPTVN1PROD with RULES




                                           Room CY–A257, Washington, DC 20554.                     beginning July 1, 2013, and adopted                   minutes (the smallest VRS providers)
                                           Document FCC 16–25 can also be                          structural reforms designed to establish              and directs the TRS Fund administrator
                                           downloaded in Word or Portable                          a more level playing field for all VRS                to pay compensation, subject to a
                                           Document Format (PDF) at: https://                      providers.                                            possible true-up, at a compensation rate
                                           www.fcc.gov/general/disability-rights-                     2. Pursuant to the TRS rules, VRS                  of $5.29 per VRS minute for the period
                                           office-headlines. To request materials in               providers submit the number of minutes                from July 1, 2015, to October 31, 2016.


                                      VerDate Sep<11>2014   15:24 Mar 18, 2016   Jkt 238001   PO 00000   Frm 00038   Fmt 4700   Sfmt 4700   E:\FR\FM\21MRR1.SGM   21MRR1


                                                              Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Rules and Regulations                                           14985

                                           This rate is applicable to a VRS provider               halt the scheduled reduction in the VRS               four-year period are: (1) January 2015–
                                           in any month for which the provider                     compensation rates applicable to the                  October 2016, $5.29; (2) November
                                           submits 500,000 or fewer compensable                    smallest VRS providers, consistent with               2016–April 2017, $5.06; (3) May–June
                                           VRS minutes for compensation from the                   its objective in the VRS Reform Order to              2017, $4.82.
                                           TRS Fund.                                               permit smaller providers a reasonable                    10. In response to the VRS Rate Freeze
                                              5. The record of this proceeding                     opportunity to grow and to attain                     FNPRM, a number of commenters urge
                                           confirms that for each of the smallest                  efficiencies comparable to those of                   the Commission to expand the proposed
                                           VRS providers, the per-minute costs                     larger VRS providers. Accordingly, the                scope of the rate freeze beyond the
                                           incurred or projected by the provider in                Commission adopts its proposal in the                 smallest VRS providers. For example,
                                           calendar years 2015 and 2016,                           VRS Rate Freeze FNPRM to apply a rate                 some parties argue that VRS providers
                                           respectively, are higher than the                       of $5.29 per minute to compensation                   that are larger than the smallest
                                           ‘‘blended’’ compensation rate applicable                claimed by the smallest VRS providers                 providers, but significantly smaller than
                                           to that provider in that year under the                 for a limited period. This rate, which                the largest provider, also have a need for
                                           four-year schedule adopted in the VRS                   was in effect prior to July 1, 2015, is               rate relief based on a comparison of
                                           Reform Order. (A provider’s ‘‘blended’’                 lower than the smallest VRS providers’                their costs with applicable
                                           compensation rate for a calendar year is                average projected allowable costs for                 compensation rates. The information
                                           the average of the Tier I rates applicable              2015 but higher than their average                    provided to the Commission does not
                                           in the first and second halves of the                   projected allowable costs for 2016. It is             indicate that any VRS providers other
                                           calendar year, weighted by the                          also lower than any individual                        than the smallest providers will have
                                           provider’s projected minutes for each                   provider’s allowable costs for 2015. The              allowable costs exceeding the average
                                           half.) The individual cost information                  Commission concludes that application                 compensation rate applicable to such
                                           filed by the smallest VRS providers,                    of a $5.29 per minute compensation rate               providers in 2015 and 2016. The
                                           which the Commission finds to be                        to the smallest VRS providers will                    Commission recognizes that among the
                                           credible, while updating the cost data                  generally provide a reasonable level of               three largest VRS providers, there are
                                           previously filed with Rolka Loube,                      support for the operations of the                     substantial differences in per-minute
                                           confirms Rolka Loube’s initial                          smallest VRS providers and will not risk              costs. However, as noted in the VRS
                                           assessment that the deficits incurred by                providing significant overcompensation                Rate Freeze FNPRM, the Commission
                                           the smallest VRS providers may be                       for such providers. In addition,                      previously restructured the rate tiers—
                                           jeopardizing their continuation of                      application of this rate to the smallest              and ‘‘froze’’ the Tier II rate at $4.82 for
                                           service. Further, the smallest VRS                      VRS providers, in lieu of the previously              the first three years of the transition
                                           providers credibly argue that available                 scheduled rates, will not impose a                    period—in order to allow the smaller of
                                           financing arrangements will not permit                  heavy cost burden on the TRS Fund.                    these providers ‘‘ ‘a full opportunity to
                                           them to maintain operations indefinitely                   8. Regarding the period for which this             improve efficiencies and achieve
                                           in accordance with the Commission’s                     rate freeze should apply, the                         scale.’ ’’ Again, these providers have not
                                           minimum TRS standards while                             Commission adopts the proposal in the                 shown that they will incur allowable
                                           continuing to operate at a loss.                        VRS Rate Freeze FNPRM for an adjusted                 costs in excess of their revenues in 2015
                                           Therefore, the Commission finds that,                   compensation rate of $5.29 per minute                 and 2016. The Commission notes that
                                           absent rate relief, it is likely that the               to be effective for 16 months, beginning              several parties attempt to renew claims
                                           smallest providers either (1) will be                   retroactively on July 1, 2015, the                    made in prior proceedings alleging that
                                           unable to maintain their operations in                  beginning of the current Fund Year, and               the categories of allowable costs are too
                                           2016 or (2) will be unable to continue                  ending on October 31, 2016. This 16-                  narrow to permit recovery of all
                                           to grow their operations significantly in               month rate freeze allows the smallest                 reasonable VRS costs. Those claims
                                           the direction of reaching optimum                       VRS providers the opportunity to                      were considered and rejected in the VRS
                                           levels of efficiency. As a result, the                  achieve market share growth and                       Reform Order. See VRS Reform Order,
                                           Commission’s objective to offer such                    improvements in efficiency while                      78 FR 40599, July 5, 2013. Further,
                                           providers ‘‘a reasonable opportunity to                 benefitting from further implementation               while a number of parties contend that
                                           . . . reach the optimum scale to                        of structural reforms—such as the                     implementation of structural reforms
                                           compete effectively’’ may be                            establishment of the ACE platform,                    has imposed additional costs, no party
                                           undermined. See VRS Reform Order, 78                    which will address interoperability and               has submitted specific estimates or
                                           FR 40602, July 5, 2013.                                 other matters and is scheduled for                    documentation regarding such
                                              6. As the Commission has previously                  launch this year.                                     implementation costs.
                                           recognized, the presence of diverse                        9. While rates should not be frozen                   11. In summary, while some parties
                                           providers can spur improvements in the                  indefinitely, the Commission agrees                   contend that the compensation rates for
                                           availability, efficiency, and functional                with a number of commenting parties                   currently profitable providers should be
                                           equivalence of VRS. Further, public                     that, in order to avoid subjecting the                frozen, allegedly to prevent reductions
                                           interest considerations favor the grant of              smallest VRS providers to a sudden                    in the quality of VRS, the Commission
                                           interim relief. The record confirms that                drop in compensation upon the                         does not perceive any immediate risk
                                           certain service features offered by small               expiration of the 16-month period, the                that any of the larger VRS providers
                                           VRS providers may be uniquely helpful                   compensation rate for the smallest                    have been or will be unable to continue
                                           in advancing the goal of functionally                   providers should be adjusted downward                 to provide service that meets the
                                           equivalent service for certain subsets of               in the same increments previously                     Commission’s minimum TRS standards
                                           VRS consumers. Specialized features                     directed in the VRS Reform Order. In                  in 2015 and 2016. The Commission
                                           offered by the smallest VRS providers                   other words, for the smallest VRS                     notes, however, that there is an open
Lhorne on DSK5TPTVN1PROD with RULES




                                           include Spanish language VRS and                        providers the ‘‘glide path’’ originally               rulemaking on a number of broader VRS
                                           emergency alert functions for schools                   established in the VRS Reform Order                   ratemaking proposals and issues. See
                                           for the deaf.                                           will resume after a 16-month freeze. The              VRS Reform FNPRM, 78 FR 40582, July
                                              7. Based on these various                            resulting per-minute rates for the                    5, 2013. Some of the comments filed in
                                           considerations, the Commission                          smallest VRS providers for the period                 response to the VRS Rate Freeze FNPRM
                                           concludes that it should temporarily                    from January 1, 2015, to the end of the               address those matters, as well as raising


                                      VerDate Sep<11>2014   15:24 Mar 18, 2016   Jkt 238001   PO 00000   Frm 00039   Fmt 4700   Sfmt 4700   E:\FR\FM\21MRR1.SGM   21MRR1


                                           14986              Federal Register / Vol. 81, No. 54 / Monday, March 21, 2016 / Rules and Regulations

                                           new issues regarding quality of service                 applied to the smallest VRS providers,                currently in effect. Therefore, the
                                           and the viability of future competition                 i.e., those providing 500,000 or fewer                Commission certifies that the rule
                                           in the VRS market. To the extent                        compensable minutes of use of VRS per                 amendments in document FCC 16–25
                                           relevant, the Commission may address                    month. Spreading rate reductions over a               will not have a significant economic
                                           these comments when it completes                        four-year period was largely intended to              impact on a substantial number of small
                                           action on the broader VRS rulemaking                    provide a reasonable opportunity for the              entities.
                                           proposals.                                              smallest providers to reach minimum
                                              12. In summary, the Commission                                                                             Ordering Clause
                                                                                                   efficient scale while benefitting from the
                                           directs the TRS Fund administrator,                     VRS Reform Order initiatives, which                     Pursuant to the authority contained in
                                           Rolka Loube, to compensate the smallest                 were intended to address many of the                  sections 4(i), 201(b), and 225 of the
                                           VRS providers at a rate of $5.29 per                    issues that have made it difficult for                Communications Act of 1934, as
                                           minute, applicable from July 1, 2015,                   small providers to operate efficiently.               amended, 47 U.S.C. 154(i), 201(b), 225,
                                           through October 31, 2016. More                             15. The smallest providers have                    document FCC 16–25 is adopted.
                                           specifically, from the effective date of                achieved significant reductions in their                Federal Communications Commission.
                                           this Report and Order through October                   per-minute costs but have yet to                      Gloria J. Miles,
                                           31, 2016, the Commission directs the                    approach the size or efficiency levels of             Federal Register Liaison Officer, Office of the
                                           administrator to pay compensation to                    their larger rivals. Further, some small              Secretary.
                                           the smallest VRS providers at a rate of                 providers offer service features that may             [FR Doc. 2016–06305 Filed 3–18–16; 8:45 am]
                                           $5.29 per minute. Second, the                           be helpful in advancing the goal of
                                                                                                                                                         BILLING CODE 6712–01–P
                                           Commission directs the administrator to                 functionally equivalent service for
                                           pay each of the smallest VRS providers                  certain subsets of VRS consumers, such
                                           a one-time lump sum reflecting the                      as Spanish language speakers and deaf-
                                           difference between the compensation                     owned businesses. Therefore, the                      DEPARTMENT OF COMMERCE
                                           they would have received if they had                    Commission adopts the temporary,                      National Oceanic and Atmospheric
                                           been paid at a rate of $5.29 per minute                 limited compensation rate ‘‘freeze’’                  Administration
                                           and the compensation they actually                      proposed in the VRS Rate Freeze
                                           received at the lower applicable rates,                 FNPRM. Specifically, from the effective               50 CFR Part 648
                                           for all compensable calls completed                     date of document FCC 16–25 through
                                           during the period between July 1, 2015,                 October 31, 2016, the Commission                      [Docket No. 160202070–6070–01]
                                           and the effective date of document FCC                  directs the TRS Fund administrator to                 RIN 0648–XE427
                                           16–25. In addition, to avoid subjecting                 pay compensation to the three smallest
                                           the smallest VRS providers to a sudden                  VRS providers at a rate of $5.29 per                  Fisheries of the Northeastern United
                                           drop in compensation upon the                           minute. In addition, the Commission                   States; Northeast Multispecies
                                           expiration of the 16-month period, the                  directs the administrator to pay each of              Fishery; Adjustment of Georges Bank
                                           Commission directs the administrator to                 the smallest VRS providers a one-time                 and Southern New England/Mid-
                                           pay compensation to the smallest VRS                    lump sum reflecting the difference                    Atlantic Yellowtail Flounder Annual
                                           providers at a rate of $5.06 per minute                 between the compensation they would                   Catch Limits
                                           from November 1, 2016, through April                    have received if they had been paid at
                                           30, 2017, and at a rate of $4.82 per                    a rate of $5.29 per minute and the                    AGENCY:  National Marine Fisheries
                                           minute from May 1, 2017, through June                   compensation they actually received at                Service (NMFS), National Oceanic and
                                           30, 2017.                                               the lower applicable rates, for all                   Atmospheric Administration (NOAA),
                                                                                                   compensable calls completed during the                Commerce.
                                           Final Regulatory Flexibility Act                                                                              ACTION: Temporary rule; adjustment of
                                                                                                   period between July 1, 2015, and the
                                           Certification                                                                                                 annual catch limits.
                                                                                                   effective date of document FCC 16–25.
                                              13. As required by the Regulatory                    In addition, to avoid subjecting the
                                           Flexibility Act (RFA), the Commission                                                                         SUMMARY:   This action transfers unused
                                                                                                   smallest VRS providers to a sudden                    quota of Georges Bank and Southern
                                           has prepared the Final Regulatory                       drop in compensation upon the
                                           Flexibility Certification (FRFC) as to the                                                                    New England/Mid-Atlantic yellowtail
                                                                                                   expiration of the 16-month period, the                flounder from the Atlantic scallop
                                           policies and rules adopted in document                  Commission directs the administrator to
                                           FCC 16–25. The Commission will send                                                                           fishery to the Northeast multispecies
                                                                                                   pay compensation to the smallest VRS                  fishery for the remainder of the 2015
                                           a copy of document FCC 16–25,                           providers at a rate of $5.06 per minute
                                           including the FRFC, to the Chief                                                                              fishing year. This quota transfer is
                                                                                                   from November 1, 2016, through April                  justified when the scallop fishery is not
                                           Counsel for Advocacy of the Small                       30, 2017, and at a rate of $4.82 per
                                           Business Administration (SBA). (See 5                                                                         expected to catch the entire allocation of
                                                                                                   minute from May 1, 2017, through June                 either stock of yellowtail flounder. The
                                           U.S.C. 603(a).)                                         30, 2017.
                                              14. After consideration of the                                                                             quota transfer is intended to provide
                                                                                                      16. In document FCC 16–25, the
                                           comments received in response to the                                                                          additional harvest opportunities for
                                                                                                   Commission adopts its proposal to
                                           VRS Rate Freeze FNPRM, the                              temporarily ‘‘freeze’’ the compensation               groundfish vessels to help achieve the
                                           Commission modifies in part the four-                   rates applicable to the smallest VRS                  optimum yield for these stocks while
                                           year compensation rate plan for video                   providers and determines, as it                       ensuring sufficient amounts of
                                           relay service (VRS) adopted in the 2013                 concluded in the Initial Regulatory                   yellowtail flounder are available for the
                                           VRS Reform Order. Although the                          Flexibility Analysis, that this measure               scallop fishery.
                                           Commission believes that the four-year                  will not impose any additional                        DATES: Effective April 18, 2016, through
Lhorne on DSK5TPTVN1PROD with RULES




                                           schedule of VRS compensation rate                       compliance requirements on small                      April 30, 2016.
                                           reductions continues to be justified in                 businesses and would temporarily ease                 FOR FURTHER INFORMATION CONTACT: Aja
                                           order to gradually move compensation                    the impact of existing VRS regulations                Szumylo, Fishery Policy Analyst, 978–
                                           rates close to a level close to average                 on small entities by temporarily                      281–9195.
                                           allowable provider costs, the                           increasing the VRS compensation rate                  SUPPLEMENTARY INFORMATION: NMFS is
                                           Commission modifies the schedule as                     for small entities above the rate                     required to estimate the total amount of


                                      VerDate Sep<11>2014   15:24 Mar 18, 2016   Jkt 238001   PO 00000   Frm 00040   Fmt 4700   Sfmt 4700   E:\FR\FM\21MRR1.SGM   21MRR1



Document Created: 2016-03-19 01:00:43
Document Modified: 2016-03-19 01:00:43
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective April 20, 2016.
ContactRobert Aldrich, Consumer and Governmental Affairs Bureau, at 202-418-0996 or email [email protected]
FR Citation81 FR 14984 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR