#### PUBLIC NOTICE![](media/image1.png){width="0.95in" height="0.9055555555555556in"}

FEDERAL COMMUNICATIONS COMMISSION

445 12th STREET, S.W.

WASHINGTON, D.C. 20554 **DA 02-1422**

News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet:
http://www.fcc.gov ftp.fcc.gov

### Released: June 14, 2002

**Proposed Payment Formula And Fund Size Estimate For The Interstate
Telecommunications Relay Services (TRS) Fund For July 2002 Through June
2003**

CC Docket No. 90-571

In this Public Notice, the Wireline Competition Bureau announces the
proposed contribution factor, payment formula, and fund size estimate
for the Interstate TRS Fund, for the funding year running from July 1,
2002 to June 30, 2003. If the Commission takes no action regarding the
contribution factor and payment formulas proposed herein within the
14-day period following release of this Public Notice, the contribution
factor and payment formulas shall be deemed approved by the Commission.

## Rules for Calculating the TRS Fund Contribution Factor and Payment Formulas

Contributions to the TRS Fund are determined using an annual
contribution factor calculated by the TRS Fund Administrator and
approved by the Commission. Under section 64.604(c)(5)(iii)(A) -- (B) of
the Commission's rules, every carrier providing interstate
telecommunications services shall contribute to the TRS Fund on the
basis of its relative share of interstate and international end-user
telecommunications revenues, and the contribution factor shall be based
on the ratio between expected TRS Fund expenses to interstate and
international end-user telecommunications revenues.[^1] The annual
payment formula is likewise calculated by the Administrator and approved
by the Commission, and is designed to compensate TRS providers for the
reasonable costs of providing interstate TRS.[^2] The payment formula is
based on total monthly interstate TRS minutes of use.[^3]

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## NECA Projections of Demand and Administrative Expenses

On May 1, 2002, pursuant to section 64.604(c)(5)(iii)(H) of the
Commission's rules,[^4] the National Exchange Carrier Association
(NECA), the current TRS Fund Administrator, submitted the payment
formula and fund size estimate for the TRS Fund for the period July 1,
2002 through June 30, 2003.[^5] Based on cost data filed by TRS
providers, NECA proposes a payment rate for traditional TRS of \$1.528
per completed interstate conversation minute, a speech to speech (STS)
reimbursement rate of \$4.045 per completed interstate conversation
minute, and a video relay service (VRS) reimbursement rate of \$17.044
per completed interstate or intrastate conversation minute.

Based on the data filed by TRS providers, NECA also projects (a)
41,315,016 interstate minutes of traditional TRS use, plus \$7,014,372
in uncollectible allowances, resulting in \$70,143,716 of reimbursement
to TRS providers; (b) 212,854 minutes of STS use, plus \$95,666 in
uncollectible allowances, resulting in \$956,660 of reimbursement; and
(c) 1,027,260 minutes of VRS use, plus \$1,945,402 in uncollectible
allowances, resulting in \$19,454,022 of reimbursement. NECA also
projects \$440,428 in administrative costs and \$696,000 in interest
income from invested TRS funds for the funding period. NECA thus
projects that the total Fund requirement is \$90,298,826. NECA states,
however, that a surplus TRS Fund balance of \$26,142,780 exists, and
therefore the total Fund requirement for the July 1, 2002 -- June 30,
2003 will be \$64,156,046.

**[Contribution Factor]{.underline}**

To calculate the contribution factor for the TRS Fund, consistent with
section 64.604(c)(5)(iii)(A) of the Commission's rules, NECA used the
carriers' 2001 interstate and international end-user revenues reported
on the FCC Form 499-A on April 1, 2002, and provided to NECA by its Data
Collection Agent. The annual Fund requirement of \$64,156,046 was
divided by total end-user revenues of \$79,919,372,345 to arrive at a
proposed carrier contribution factor of **0.00080**. NECA states that
the payment formulas and contribution factor are proposed to become
effective on July 1, 2002 and will remain in effect through June 30,
2003.

**[Effective Date of the Contribution Factor and Payment
Formulas]{.underline}**

If the Commission takes no action regarding the proposed contribution
factor within the 14-day period following release of this Public Notice,
the contribution factor and payment formulas shall be deemed approved by
the Commission, and become effective on July 1, 2002, and will remain in
effect through June 30, 2003.

Pursuant to the Commission's rules, every carrier providing interstate
services, including, but not limited to, cellular telephone and paging,
mobile radio, operator services, personal communication service, access
(including subscriber line charges), alternative access and special
access, packet-switched, WATS, 800, 900, message telephone service
(MTS), private line, telex, telegraph, video, satellite, intraLATA,
international, and resale services, shall contribute to the TRS Fund
based on their relative share of interstate and international end-user
revenues.[^6] Contributors whose annual contribution exceeds \$1200 have
the option of dividing their contribution into equal monthly
payments.[^7] Contributors failing to pay contributions in a timely
fashion may be subject to the enforcement provisions of the
Communications Act of 1934, as amended, and any other applicable law. In
addition, contributors may be billed by NECA for reasonable costs of
collecting overdue or improperly filed contributions.[^8]

Pursuant to the Commission's rules, TRS providers must submit reports of
minutes of use to NECA in order to receive payments for providing
interstate TRS.[^9] NECA shall verify payment claims, and may suspend or
delay payments if a TRS provider fails to provider adequate verification
of payment upon reasonable request, or if directed by the Commission to
do so.[^10] NECA shall make payments only to eligible TRS providers
operating pursuant to the mandatory minimum standards set forth at 47
CFR §64.604.[^11]

For further information, contact Andy Firth, Telecommunications Access
Policy Division, Wireline Competition Bureau, at (202) 418-2694, TTY
(202) 418-0484, e-mail: afirth@fcc.gov.

[^1]: 47 C.F.R. § 64.604(c)(5)(iii)(A) -- (B).

[^2]: 47 C.F.R. § 64.604(c)(5)(iii)(E).

[^3]: *Id.*

[^4]: 47 C.F.R. § 64.604(c)(5)(iii)(H).

[^5]: *In the Matter of Administration of Telecommunications Services
    for Individuals with Hearing and Speech Disabilities, and the
    Americans with Disabilities Act of 1990*, Payment Formula and Fund
    Size Estimate Interstate Telecommunications Relay Services (TRS)
    Fund for July 2002 through June 2003 (filed May 1, 2002) (NECA
    Filing).

[^6]: 47 C.F.R. § 64.604(c)(5)(iii)(A).

[^7]: 47 C.F.R. § 64.604(c)(5)(iii)(A).

[^8]: *See* 47 C.F.R. § 64.604(c)(5) (iii)(B).

[^9]: 47 C.F.R. § 64.604(c)(5)(iii)(E).

[^10]: *Id*.

[^11]: *Id.*