Editorial #101: FCC: FNPRM (11-184) Analysis #2-Tiered Rates

Another proposed rule has to do with tiered rates. The FCC is asking whether tiered rates make sense. We all know that fixed costs are the same for all VRS companies which means that it costs more for smaller VRS companies to provide the service than its for larger VRS companies. That is why tiered rates allow small companies to compete on an even playing field with larger VRS companies.

What is a tiered rate? If for example a per user rate or per minutes ate would be in effect, the smaller VRS companies would get a higher rate than the larger VRS companies. This enables smaller VRS companies to provide the service. If there were one rate, it’s possible that the smaller VRS companies will drop out of the market.

Dr. Z is of the opinion that we need a number of VRS companies out there so there can be competition. If companies drop out, we will have less competition and therefore less service and features.

Here’s the link to the proposed rules.

Here’s the link to comment to the FCC on those proposed rules.

Dr. Z cares about your communication access.

Disclaimer: Dr. Z is currently the Vice-President of Business Development and Outreach at CSDVRS, LLC.