Washington, D.C., On June 26, 2009 the FCC adopted
the National Exchange Carrier Association, Inc.’s (NECA), the TRS Fund
administrator, proposed Fund size and carrier contribution factor for
2009-2010. The FCC adopted a carrier contribution factor of 0.01137 and a
funding requirement of $890,992,075.
Telecom Relay Services (TRS)
enable individuals with hearing or speech disabilities to communicate by
telephone or other device through the telephone system with a person without
such a disability through a communications assistant at a relay center (U.S.C.
§ 225(a)(3)). Every carrier providing interstate telecommunications services
must contribute to the TRS Fund based on its end-user telecommunications
revenues.1 Carriers are subject to pay a contribution factor
determined annually by the Commission based on a ratio between expected TRS
Fund expenses to interstate end-user telecommunications revenues.1
The FCC has adopted NECA’s
proposed per-minute compensation rates for 2009-2010.2 Based on
these rates, the FCC adopted NECA’s contribution factor of 0.01137 and funding
requirement of $890,992,075. It is important for contributors to note that NECA
will not bill contributors for TRS contributions, instead fee schedules and
filing directions are located in the regulatory fees section of the FCC
web site.
Under the TRS requirements, carriers
are required to complete and submit a Telecommunications Reporting Worksheet
which is published by the Commission in the Federal Register and must be
certified by an officer of the reporting company. As the fund administrator,
NECA has the authority to bill contributors a separate assessment for
“reasonable administrative expenses and interest resulting from improper filing
or overdue contributions.” 1 Yet, the Chief of the Consumer &
Governmental Affairs Bureau may “waive, reduce, modify or eliminate contributor
reporting requirements that prove unnecessary and require additional reporting
requirements that the Bureau deems necessary to the sound and efficient
administration of the TRS Fund.” 1
However, required contributors
should be aware that companies showing a pattern of non-compliance may be
subject to forfeiture penalties imposed by the FCC. 3
It is important for contributors
to realize that even companies exempt from Universal Service Fund (USF)
Contributions because of a de minimis
status, may still be obligated to contribute to the TRS Fund. 4
Additionally, subject carriers are required to contribute at least $25 per
year. Carriers whose annual contributions total less than Service providers
whose contributions total $1,200 or more may divide their contributions into
equal monthly payments; however, carriers whose annual contributions are less
than $1,200 must pay the entire contribution at the beginning of the
contribution period. 1,3
