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Editorial #20-FCC Workshop on VRS Reform-Proposing to Look at How VRS Is Funded

The FCC on December 4th announced they will host a workshop on December 17th on VRS reform.

The following is the second of 3 agenda items:

A fair, efficient, and transparent compensation methodology

This means that the FCC is asking for everyone’s thoughts on how the VRS service should be funded. The current rates have been frozen for 3 years and this time around, in the spring, the rates will be up for review. Dr. Z is hopeful that the FCC will review the rates with the help of NECA to insure all VRS providers are compensated fairly and appropriately. Since there is a dominant player in the market and using the old mechanism for calculating rates can be affected by the skew of a larger provider. Dr. Z is asking the FCC to be wary of this and not let the dominant provider skew the rates when they propose the rates. Since there are efficiencies of scale, Dr. Z feels a tiered rate structure is going to be appropriate once again. If the rates are too generous for the dominant provider, it only serves for them to become larger and in effect getting towards a monopolistic position. Dr. Z is hopeful that the FCC will take all of this into consideration when they perform the rate setting process for 2010 and beyond.

Dr. Z (and the FCC) cares about your communication access.

2 comments to Editorial #20-FCC Workshop on VRS Reform-Proposing to Look at How VRS Is Funded

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