**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the matter of                 | *  | CG Docket No. 03-123         |
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| Telecommunications Relay         | ** |                              |
| Services and                     |    |                              |
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| Speech-to-Speech Services for    | *) |                              |
|                                  | ** |                              |
| Individuals with Hearing and     |    |                              |
| Speech Disabilities              | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
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|                                  | *  |                              |
|                                  | *) |                              |
|                                  | ** |                              |
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|                                  | *  |                              |
|                                  | *) |                              |
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+----------------------------------+----+------------------------------+

**ORDER**

**Adopted: February 6, 2008 Released: February 6, 2008**

By the Chief, Consumer and Governmental Affairs Bureau:

1.  This Order adopts a revised Interstate Telecommunications Relay
    Services (TRS) Fund size and carrier contribution factor for the
    July 2007 to June 2008 Fund year.[^1] As set forth below, the
    revised Fund size is \$636,736,491.75, and the revised carrier
    contribution factor is 0.00819.

# BACKGROUND

2.  On June 29, 2007, the Consumer and Governmental Affairs Bureau (CGB)
    released the 2007-2008 TRS rate order, which adopted compensation
    rates for the various forms of the TRS, a Fund size of
    \$553,378,363.18, and a carrier contribution factor of 0.0072.[^2]
    Subsequently, on November 19, 2007, the Commission released the
    *2007 TRS Rate Methodology Order,* which, *inter alia*, adopted
    revised compensation rates.[^3] The Commission stated that it would
    address whether the Fund size and carrier contribution factor should
    also be modified in a separate order.[^4]

3.  On November 30, 2007, the Fund administrator (the National Exchange
    Carrier Association (NECA)) filed with the Commission a revised Fund
    size and carrier contribution factor for the 2007-2008 Fund
    year.[^5] NECA proposes increasing the Fund size approximately \$83
    million (to \$636,736,491.75), and increasing the carrier
    contribution factor from 0.0072 to 0.00819.[^6] NECA explains that
    increasing the Fund size is necessary because demand for certain
    interstate relay services, particularly Video Relay Service
    (VRS),[^7] has outpaced its initial projections, and the revised
    compensation rates are generally higher than those adopted at the
    beginning of the Fund year in the *2007 Bureau TRS Rate Order*.[^8]
    NECA asserts that, as a result, increasing the Fund size is
    necessary to ensure that it does not run out of money before the end
    of the Fund year.[^9]

4.  In addition, as a result of the increase in the Fund size, as well
    as the Commission's recent order requiring interconnected VoIP
    service providers to contribute to the Fund,[^10] NECA notes that it
    also must revise the carrier contribution factor. The carrier
    contribution factor is calculated by dividing the Fund size by total
    interstate common carrier end-user revenues.[^11] The revised Fund
    size is \$636,736,491.75, and NECA proposes using a revised revenue
    base of \$77.7 billion.[^12] As a result, the proposed revised
    carrier contribution factor is 0.00819.[^13]

# discussion

5.  We agree that because of the continued significant growth in VRS
    minutes, together with the revised compensation rates, the present
    Fund size may be inadequate to compensate providers for the
    remainder of the present 2007-2008 Fund year. Therefore, we find it
    necessary to increase the Fund size and adjust the carrier
    contribution factor for the July 2007 through June 2008 funding
    period. Because the TRS regulations provide that the carrier
    contribution factor shall be determined annually,[^14] we apply the
    established standards for waiver of Commission rules.

6.  Generally, the Commission's rules may be waived for good cause
    shown.[^15] The Commission may exercise its discretion to waive a
    rule where the particular facts make strict compliance inconsistent
    with the public interest.[^16] In addition, the Commission may take
    into account considerations of hardship, equity, or more effective
    implementation of overall policy on an individual basis.[^17] Waiver
    of the Commission's rules is therefore appropriate only if special
    circumstances warrant a deviation from the general rule, and such a
    deviation will serve the public interest.[^18] []{.mark}

7.  Applying this standard, we conclude that good cause exists to waive
    our rules to the extent they require that the carrier contribution
    factor be determined on an annual basis.[^19] The increase in demand
    usage in TRS was not anticipated, and the Commission must ensure
    that the Interstate TRS Fund has adequate funds to compensate
    eligible TRS providers for the provision of eligible TRS services
    and ensure the continued availability of relay services to persons
    with hearing and speech disabilities. Therefore, as a result the
    significant growth of demand usage in TRS, as well as the new
    compensation rates, we adjust the annual carrier contribution factor
    for the July 2007 through June 2008 funding period from 0.0072 to
    0.00819 in order to collect the additional monies needed over the
    remaining months of the fund year. The revised Fund size shall be
    \$636,736,491.75.

# ordering clauses

8.  Accordingly, IT IS ORDERED that, pursuant to the authority contained
    in Section 225 of the Communications Act of 1934, as amended, 47
    U.S.C. § 225, and Sections 0.141, 0.361 and 1.3 of the Commission's
    rules, 47 C.F.R. §§ 0.141, 0.361 and 1.3, this Order IS hereby
    ADOPTED.

9.  IT IS FURTHER ORDERED that the Interstate TRS Fund size for the July
    2007 through June 2008 funding period will increase from
    \$553,378,363.18 to \$636,736,491.75 and that, as a result, the
    annual contribution factor shall be modified from 0.0072 to 0.00819.

10. IT IS FURTHER ORDERED that this Order shall be effective upon
    release.

11. To request materials in accessible formats (such as Braille, large
    print, electronic files, or audio format), send an e-mail to
    <fcc504@fcc.gov> or call the Consumer & Governmental Affairs Bureau
    at (202) 418-0530 (voice) or (202) 418-0432 (TTY). This *Order* can
    also be downloaded in Word and Portable Document Formats (PDF) at
    <http://www.fcc.gov/cgb/dro/trs.html#orders>.

    FEDERAL COMMUNICATIONS COMMISSION

    Catherine W. Seidel, Chief Consumer & Governmental Affairs Bureau

[^1]: TRS enables a person with a hearing or speech disability to access
    the nation's telephone system to communicate with voice telephone
    users through a relay provider and a Communications Assistant (CA).
    *See generally* 47 U.S.C. § 225; 47 C.F.R. § 64.601 *et seq.*
    (implementing regulations). The Interstate TRS Fund (Fund)
    compensates providers for the costs of providing interstate relay
    service and, with some forms of TRS, both interstate and intrastate
    relay services. There are two aspects to this cost recovery scheme:
    (1) collecting money from various telecommunications and related
    services to create a Fund from which TRS providers may be
    compensated, and (2) the payment of money from the Fund to providers
    to compensate them for their reasonable costs of providing service.
    *See generally Telecommunications Relay Services and
    Speech-to-Speech Services for Individuals with Hearing and Speech
    Disabilities*, CG Docket No. 03-123, Report and Order, and
    Declaratory Ruling, 22 FCC Rcd 20140 (Nov. 19, 2007) (*2007 TRS Rate
    Methodology Order*); *Telecommunications Relay Services and
    Speech-to-Speech Services for Individuals with Hearing and Speech
    Disabilities*, CG Docket No. 03-123 Order, 22 FCC Rcd 11706,
    11706-08, at paras. 1-4 (June 29, 2007) (*2007 Bureau TRS Rate
    Order*). There are presently different per-minute compensation rates
    for the various forms of TRS: traditional (TTY-based) TRS, captioned
    telephone service, Speech-to-Speech (STS), IP Relay, and Video Relay
    Service (VRS). *See*
    <http://www.neca.org/source/NECA_Resources_4285.asp> (TRS Monthly
    Fund Reports).

[^2]: *2007 Bureau TRS Rate Order.*

[^3]: *2007 TRS Rate Methodology Order*. The new compensation rates are
    effective March 1, 2008 (*i.e.,* the first day of the month
    following the effective date of the order, which date is 30 days
    after publication of the order in the Federal Register). *See id.*,
    22 FCC Rcd at 20178, para. 109. The order was published in the
    Federal Register on January 17, 2008. *See* 73 FR 3197.

[^4]: *2007 TRS Rate Methodology Order*, 22 FCC Rcd at 20141-42, para. 2
    n.11.

[^5]: NECA, *Interstate Telecommunications Relay Service Fund,
    Supplement to Annual Filing for TRS Contribution Factor Increase*,
    CG Docket No. 03-123 (Nov. 30, 2007) (*2007 NECA Filing*).

[^6]: *2007 NECA Filing* at 2 and Exhibit 1.

[^7]: VRS is a form of TRS that allows individuals with hearing or
    speech disabilities to communicate using sign language through video
    equipment and the Internet, rather than using text. The video link
    allows the CA to view and interpret the VRS user's signed
    conversation, and relay the conversation back and forth between the
    VRS user and the called party. *See* 47 C.F.R. § 64.601(17).

[^8]: *2007 NECA Filing* at 1 (also including various tables and
    exhibits setting forth revised projected growth in minutes for VRS
    and the other forms of TRS through June 2008). To summarize, taking
    into consideration revised growth rates and the revised compensation
    rates, NECA concludes that an additional \$84.4 million will be
    required for VRS and an additional \$7.4 million will be required
    for interstate traditional TRS and interstate captioned telephone
    service. *Id.* at 5-6. NECA also determines that approximately \$8.8
    million less will be required for IP Relay, and that approximately
    \$20,000 less will be required for STS. *Id.* at 8-9.

[^9]: *Id.* at 2.

[^10]: *IP-Enabled Services; Implementation of Sections 255 and
    251(a)(2) of the Communications Act of 1934, as Enacted by the
    Telecommunications Act of 1996: Access to Telecommunications
    Service, Telecommunications Equipment and Customer Premises
    Equipment by Persons with Disabilities; Telecommunications Relay
    Services and Speech-to-Speech Services for Individuals With Hearing
    and Speech Disabilities; The Use of N11 Codes and Other Abbreviated
    Dialing Arrangements*, WC Docket No. 04-36, WT Docket No. 96-198, CG
    Docket No. 03-123 & CC Docket No. 92-105, Report and Order, 22 FCC
    Rcd 11275 (June 15, 2007) (*VoIP TRS Order*). The requirement that
    interconnected VoIP providers contribute to the Fund became
    effective October 5, 2007.

[^11]: *See* 47 C.F.R. § 64.604(c)(5)(iii)(B).

[^12]: In the *2007 Bureau TRS Rate Order*, the Bureau used a projected
    revenue base of \$76.8 billion. *2007 Bureau TRS Rate Order*, 22 FCC
    Rcd at 11711-12, para. 24. Because, as noted above, the *VoIP TRS
    Order* requires interconnected VoIP service providers to contribute
    to the Fund, NECA has calculated a revised revenue base of \$77.7
    billion, which includes an assessment on interconnected VoIP service
    providers' fourth quarter 2006 revenues as reported on FCC From
    499-A, pro-rated for the 2007-2008 Fund year (*i.e.,* beginning with
    the October 5, 2007, effective date of the interconnected VoIP
    providers' contribution obligation). *See VoIP TRS Order*, 22 FCC
    Rcd at 11295-96, para. 40; *2007 NECA Filing* at 10-11.

[^13]: *2007 NECA Filing* at 11 & Exhibit 1. NECA states that it is
    unclear whether, in determining interconnected VoIP providers'
    contributions to the Fund, it should include only 4^th^ Quarter VoIP
    revenues or annualized VoIP provider revenues. *2007 NECA Filing* at
    10. We adopt the contribution factor based on only 4^th^ Quarter
    VoIP revenues pursuant to the directives in the *VoIP TRS Order.
    See* note 12, *supra.*

[^14]: *See* 47 C.F.R. § 64.604(c)(5)(iii)(B).

[^15]: 47 C.F.R. § 1.3.

[^16]: *Northeast Cellular Telephone Co. v. FCC*, 897 F.2d 1164, 1166
    (D.C. Cir. 1990) (*Northeast Cellular*).

[^17]: *WAIT Radio v. FCC*, 418 F.2d 1153, 1159 (D.C. Cir. 1969);
    *Northeast Cellular*, 897 F.2d at 1166.

[^18]: *Northeast Cellular*, 897 F.2d at 1166.

[^19]: *See Telecommunications Relay Services and Speech-to-Speech
    Services for Individuals with Hearing and Speech Disabilities*, CC
    Docket No. 98-67, Order, 19 FCC Rcd 2993 (Feb. 24, 2004) (similarly
    waiving, *sua sponte*, requirement that the carrier contribution
    factor be determined on an annual basis).