Internet Protocol Relay Service Compensation Methodology, 64440-64444 [2021-24945]
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Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Proposed Rules
levels to align with the Washington
State Legislature’s statutory changes
focused on the more recent 24-hour
PM2.5 NAAQS and expanding the burn
ban applicability beyond the former
Woodsmoke Control Zone. The EPA is
also proposing to determine that
Regulation 1, sections 3.04 Wood
Heaters and 3.05 Burn Bans, adopted by
YRCAA effective November 9, 2020 are
consistent with section 110 of the Clean
Air Act. The EPA is soliciting public
comments on YRCAA Regulation 1,
sections 3.04 Wood Heaters and 3.05
Burn Bans which will be considered
before taking final action. We are also
proposing to remove from the SIP the
outdated 1993 and 1995 Article IX
provisions Woodstoves and Fireplaces,
which are replaced by sections 3.04 and
3.05. We note that the October 14, 2021
submission also includes outdoor
burning regulations and other general
air quality regulations which the EPA
will address in separate actions.
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IV. Incorporation by Reference
In this document, the EPA is
proposing to include in a final rule,
regulatory text that includes
incorporation by reference. In
accordance with requirements of 1 CFR
51.5, the EPA is proposing to
incorporate by reference YRCAA
Regulation 1, sections 3.04 and 3.05
discussed in section III of this preamble
and remove from the incorporation by
reference YRCAA Regulation 1, Article
IX which is replaced by sections 3.04
and 3.05. The EPA has made, and will
continue to make, these documents
generally available through https://
www.regulations.gov and at the EPA
Region 10 Office (please contact the
person identified in the FOR FURTHER
INFORMATION CONTACT section of this
preamble for more information).
V. Statutory and Executive Order
Reviews
Under the Clean Air Act, the
Administrator is required to approve a
SIP submission that complies with the
provisions of the Clean Air Act and
applicable Federal regulations. 42
U.S.C. 7410(k); 40 CFR 52.02(a). Thus,
in reviewing SIP submissions, the EPA’s
role is to approve State choices,
provided that they meet the criteria of
the Clean Air Act. Accordingly, this
proposed action merely approves State
law as meeting Federal requirements
and does not impose additional
requirements beyond those imposed by
State law. For that reason, this proposed
action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
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Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• Does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4);
• Does not have federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of the requirements would
be inconsistent with the Clean Air Act;
and
• Does not provide the EPA with the
discretionary authority to address, as
appropriate, disproportionate human
health or environmental effects, using
practicable and legally permissible
methods, under Executive Order 12898
(59 FR 7629, February 16, 1994).
In addition, this proposed action
would not apply on any Indian
reservation land or in any other area
where the EPA or an Indian tribe has
demonstrated that a tribe has
jurisdiction. In those areas of Indian
country, the rule does not have tribal
implications as specified by Executive
Order 13175 (65 FR 67249, November 9,
2000). Consistent with EPA policy, the
EPA provided an opportunity to request
consultation to the Confederated Tribes
and Bands of the Yakama Nation in a
letter dated April 5, 2021.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Lead,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile
organic compounds.
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Dated: November 9, 2021.
Michelle L. Pirzadeh,
Acting Regional Administrator, Region 10.
[FR Doc. 2021–25042 Filed 11–17–21; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket No. 03–123; RM–11820; FCC
21–95; FR ID 57163]
Internet Protocol Relay Service
Compensation Methodology
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the Federal
Communications Commission (FCC or
Commission) proposes to modify the
methodology for determining
compensation for the provision of
internet Protocol Relay (IP Relay)
service and seeks comments on
modifying the formula for determining
the per-minute compensation for
providers of IP Relay to ensure Interstate
TRS Fund support is sufficient to
sustain a functionally equivalent
telephone service.
DATES: Comments are due December 20,
2021; reply comments are due January
18, 2022.
ADDRESSES: You may submit comments,
identified by CG Docket No. 03–123 and
RM–11820, by either of the following
methods:
• Federal Communications
Commission’s Website: https://
www.fcc.gov/ecfs/filings. Follow the
instructions for submitting comments.
• Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. Filings can be
sent by hand or messenger delivery, by
commercial overnight courier, or by
first-class or overnight U.S. Postal
Service mail. Currently, the Commission
does not accept any hand delivered or
messenger delivered filings as a
temporary measure taken to help protect
the health and safety of individuals, and
to mitigate the transmission of COVID–
19. All filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
For detailed instructions on
submitting comments and additional
information on the rulemaking process,
see document FCC 21–95 at: https://
docs.fcc.gov/public/attachments/FCC21-95A1.pdf.
FOR FURTHER INFORMATION CONTACT:
William Wallace, Consumer and
SUMMARY:
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Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Proposed Rules
Governmental Affairs Bureau, at 202–
418–2716, or William.Wallace@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Notice of
Proposed Rulemaking (Notice),
document FCC 21–95, adopted on
August 5, 2021, released on August 6,
2021, in CG Docket No. 03–123 and
RM–11820. The full text of document
FCC 21–95 is available for public
inspection and copying via the
Commission’s Electronic Comment
Filing System (ECFS).
To request materials in accessible
formats for people with disabilities
(Braille, large print, electronic files,
audio format), send an email to fcc504@
fcc.gov or call the Consumer and
Governmental Affairs Bureau at (202)
418–0530.
This proceeding shall be treated as a
‘‘permit-but-disclose’’ proceeding in
accordance with the Commission’s ex
parte rules. 47 CFR 1.1200 et seq.
Persons making ex parte presentations
must file a copy of any written
presentation or a memorandum
summarizing any oral presentation
within two business days after the
presentation (unless a different deadline
applicable to the Sunshine period
applies). Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with
§ 1.1206(b). In proceedings governed by
§ 1.49(f) or for which the Commission
has made available a method of
electronic filing, written ex parte
presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
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.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
Initial Paperwork Reduction Act of
1995 Analysis
The Notice in document FCC 21–95
seeks comment on proposed rule
amendments to the compensation
methodology that may result in
modified information collection
requirements. If the Commission adopts
any modified information collection
requirements, the Commission will
publish another document in the
Federal Register inviting the public to
comment on the requirements, as
required by the Paperwork Reduction
Act. Public Law 104–13; 44 U.S.C.
3501–3520.
In addition, pursuant to the Small
Business Paperwork Relief Act of 2002,
the Commission seeks comment on how
it might further reduce the information
collection burden for small business
concerns with fewer than 25 employees.
Public Law 107–198; 44 U.S.C.
3506(c)(4).
Synopsis
1. In document FCC 21–95, the
Commission proposes to modify the
methodology for setting compensation
for IP Relay, a form of
Telecommunications Relay Service
(TRS).
2. With IP Relay, an individual with
a hearing or speech disability can
communicate with voice telephone
users by transmitting text via the
internet. The text transmission is
delivered to an IP Relay call center,
where a communications assistant (CA)
converts the user’s text to speech for the
hearing party and converts that party’s
speech to text for the IP Relay user.
3. IP Relay is supported by the TRS
Fund in accordance with a methodology
approved by the Commission in 2007. A
base level of per-minute compensation
is approved based on the weighted
average of providers’ reasonable costs
and remains effective for a three-year
period. In addition, an adjustment factor
is set to be applied to the base amount
to determine per-minute compensation
for the second and third years, which
reflects an increase due to inflation,
offset by a decrease due to cost
efficiencies. The base compensation
amount also is subject to upward
adjustment to account for exogenous
costs, i.e., those costs beyond the
control of the IP Relay providers that are
not reflected in the inflation adjustment.
At the end of each three-year period, the
base compensation level is reset based
on average provider costs. The current
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compensation period runs from July 1,
2019, to June 30, 2022.
4. Since 2007, there have been
substantial changes in the
circumstances relevant to TRS Fund
support of IP Relay. In 2013 and 2014,
four of the five IP Relay providers exited
the market, and IP Relay demand
declined precipitously. After November
2014, Sprint Corporation (now T-Mobile
USA, Inc.) was the sole provider of IP
Relay service, and demand stabilized.
5. In response to these developments,
the Consumer and Governmental Affairs
Bureau (CGB or Bureau) has taken a
number of steps to ensure that TRS
Fund support for IP Relay was sufficient
to sustain the service and allow the
remaining provider to ascertain and
meet the needs of consumers relying on
it for functionally equivalent telephone
service.
6. In 2016, the Bureau partially
waived the Commission rule prohibiting
TRS Fund support of IP Relay providerdirected outreach activities to allow TMobile to effectively educate deafblind
consumers about its service and solicit
feedback on how to improve it. The
Bureau renewed this waiver in
subsequent years.
7. In 2019, the Bureau allowed
recovery of an operating margin,
determined as a percentage of annual
expenses, in lieu of the rate of return on
capital investment previously allowed.
In renewing the previously granted
waiver permitting provider recovery of
expenses for outreach to the deafblind
community, the Bureau expanded the
scope of that waiver to include outreach
to other potential users of this service.
8. In November 2018, Sprint (now TMobile) filed a petition for rulemaking
requesting a new compensation
methodology. The company proposed
that the Commission adopt a new
approach based substantially on the
Multi-State Average Rate Structure
(MARS) compensation plan for TTYbased TRS offered through state TRS
programs.
9. The Commission proposes to
amend the compensation rules for IP
Relay to take account of the changed
environment in which this service is
provided. The Commission believes it
should continue the practice of
periodically re-setting the compensation
level based on determinations of
reasonable provider cost. As the
Commission explained last year when
setting compensation for internet
Protocol Captioned Telephone Service
(IP CTS) in the IP CTS Compensation
Methodology Order, published at 85 FR
64971, October 14, 2020, over a long
period ‘‘the Commission has developed
a consistent approach to determining
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the reasonable costs of providing TRS,
which can be applied without imposing
undue administrative burdens on either
providers or the Commission.’’ Further,
‘‘[a]lthough any ratemaking method is
subject to imprecision, provider cost
data, which is subject to audit, has been
reasonably reliable and consistent,’’ and
‘‘the Commission’s determinations
regarding allowability of costs are
solidly reasoned and have been upheld
on judicial review.’’ The Commission
seeks comment on whether these
general observations continue to hold
true for IP Relay.
10. The Commission proposes to
continue setting the compensation level
for a multi-year period, subject to
annual adjustment based on
predetermined factors. The Commission
proposes a number of changes in how
reasonable costs are determined, and
seeks comment on whether to change
the specific duration of the
compensation period and on the
appropriate criteria for annual
adjustment of the compensation level,
as well as other aspects of the
methodology. The Commission seeks
comment on which specific aspects of
the cost-based approach have been
problematic in the IP Relay context and
how they could be improved. The
Commission seeks additional comment
on the MARS-based alternative
proposed in T-Mobile’s petition for
rulemaking, and invites commenters to
suggest additional alternative
compensation methodologies.
Benefits of IP Relay
11. The Commission seeks granular
information on which segments of the
TRS-eligible population primarily use
and benefit from this service. How many
deafblind individuals use IP Relay and
how many minutes of use do they
represent? The Commission seeks
comment on the best way to determine
or estimate these numbers. What
features of IP Relay are critical for this
customer segment? What proportion of
IP Relay users represent people who
became deaf or hard of hearing early in
life, and are unable to use VRS because
they do not know ASL? To what extent
is IP Relay used to make 911 calls, and
what advantages does it offer in this
regard? To what extent do other forms
of TRS (or other communications
services, such as real-time text) provide
an effective substitute to IP Relay for
individuals who might otherwise rely
on the service as their sole or primary
means of telephone communication? To
what extent do people who lose hearing
later in life find IP Relay beneficial,
despite the availability of other options,
such as IP CTS? Would a person with
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close to 100% hearing loss find IP Relay
preferable to IP CTS? Would such a
preference depend on how much an
individual’s speech is affected, or other
factors? The Commission seeks
comment on whether there has been
enough outreach and education to the
deafblind community by the
Commission and TRS providers and
whether more is needed. Would
increased outreach and education to the
deafblind community regarding the
availability and merits of each type of
TRS increase legitimate demand for IP
Relay?
Allowable Expenses
12. The Commission has made a
number of determinations, both for TRS
generally and for specific relay services,
as to whether various categories of costs
are allowable for recovery from the TRS
Fund as reasonable costs of providing
TRS. The Commission seeks comment
on possible amendments to the
allowable cost rules.
13. Outreach. The Commission
proposes to rescind the current
prohibition on outreach recovery by IP
Relay providers and seeks comment on
this proposal, its costs and benefits, and
the underlying rationale stated below.
14. First, CGB has found that in the
absence of competition, providing
economic incentive for outreach and
education by the sole service provider
may be critical to effectively educate
consumers—including consumers who
are deafblind and others—regarding the
availability of and improvements to the
service. The Commission invites
comment on the extent to which
outreach for this purpose continues to
be needed and the resulting benefits.
15. Second, with only one IP Relay
provider, the Commission believes that
provider outreach expenditures in this
context are more likely to be focused
appropriately on educating existing and
potential IP Relay users about the
service rather than on encouraging or
preventing ‘‘churn’’ among existing
customers, would therefore be more
effective for their intended purpose than
when the outreach ban was adopted,
and would not likely duplicate other
outreach efforts. Finally, a review of the
outreach reports submitted by T-Mobile
in response to the resumption of
compensated outreach activity has not
shown that they are misdirected toward
ineligible users. Therefore, the
Commission does not believe such
efforts would contribute to a recurrence
of the kind of misuse of IP Relay that
occurred prior to 2015. The Commission
seeks comment on these assumptions.
16. The Commission seeks comment
on whether to limit allowable outreach
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expenses to a specified percentage or
amount, and, if so, what percentage or
amount should be allowed. How should
the Commission measure the
effectiveness of outreach efforts—based
on the number of new users or on some
other basis? Should the Commission
continue to require the filing of regular
reports to ensure that outreach expenses
are beneficial and effectively educating
consumers about IP Relay service, and
if so, on what schedule? Should the
Commission continue to require
separate reporting of general and
deafblind outreach activities and the
associated costs?
17. Indirect Overhead. The
Commission seeks comment on whether
to modify, with respect to IP Relay, the
Commission’s rule allowing recovery for
only those overhead costs directly
related to and directly supporting the
provision of relay service and whether
there is a continuing need for this rule
in the IP Relay context.
18. First, is the current rule effectively
mandated by section 225 of the
Communications Act of 1934, as
amended? 47 U.S.C. 225. Given that
only some current providers of TRS are
common carriers, does the Commission
have more flexibility in determining
what costs are reasonable?
19. Second, the Commission seeks
comment on the cost-effectiveness of the
current rule, relative to alternatives,
notably allowing a reasonable
contribution toward overhead costs. To
what extent is it feasible for a multiservice provider to track administrative
costs directly, to the extent they are
attributable to the provision of TRS? Is
it unduly burdensome to require a
demonstration of cost causation for such
costs, e.g., by maintaining time records
for staff time attributable to IP Relay?
What specific kinds of administrative
costs that are not currently recoverable
would be recovered if allocation of
overhead were permitted? The
Commission seeks comment on whether
there are circumstances specific to the
current context of IP Relay, such as the
presence of only one provider, that
make the rule more burdensome or less
appropriate for application to this
service, compared to other forms of
TRS? How much would allowing
support for such costs increase perminute IP Relay compensation? Is there
any risk T-Mobile would abandon TRS
if it continued to receive no
contribution to overheads but continued
to be fully compensated for all costs
attributed to TRS?
20. If the Commission were to allow
recovery of overhead costs, i.e.,
administrative costs not directly
attributable to TRS, how should such
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costs be allocated—based on the
percentage of total revenues derived
from IP Relay, percentage of total
company costs, or by some other
method? How could the Commission or
Fund administrator effectively audit
such allocations?
21. Other Allowable Costs. Are there
other costs incurred in the provision of
IP Relay that the Commission’s
methodology should allow?
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Operating Margin
22. The Commission proposes to
amend its compensation rules to affirm
that the IP Relay compensation level
should include an operating margin—
i.e., an allowance for recovery of a
designated percentage of allowed
expenses, in lieu of return on
investment. The Commission seeks
comment on this proposal and its costeffectiveness.
23. The Commission seeks comment
on what percentage of allowable
expenses constitutes a reasonable
operating margin for IP Relay. By what
criteria should the allowed operating
margin be determined? Is business risk
assessment an appropriate measure for
setting the operating margin for IP
Relay? Due to the level of business risk,
or for other reasons, should the
operating margin for IP Relay be
different from that for other forms of
TRS? Is the operating margin of 12.35%,
determined by the Bureau in 2019, a
reasonable margin going forward, or
should a different allowed margin be
selected? Have there been recent
changes in capital markets that would
support increasing or decreasing this
margin? The Commission seeks
comment on whether future
determinations of an operating margin
for IP Relay should be made by the
Commission itself or could be delegated
to the Bureau.
Projected Versus Historical Costs
24. The Commission proposes to
return to the pre-2019 practice of using
only projected costs and demand as the
basis for calculating the base
compensation level for IP Relay and
seeks comment on this proposal and its
cost-effectiveness relative to other
approaches. The Commission invites the
submission of evidence regarding the
likelihood that the current level of cost
increases in IP Relay are likely to
continue or to prove to be a temporary
phenomenon.
Compensation Period and Adjustments
25. Duration of Compensation Period.
The Commission proposes to continue
setting IP Relay compensation for a
multi-year period and seeks comment
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on this proposal and whether it will
provide benefits in the IP Relay context.
26. Assuming that the Commission
continues setting compensation for a
multi-year period, should the duration
continue to be three years? A longer
compensation period, such as four or
five years, would potentially offer a
provider greater certainty for the
purpose of long-term planning and
allow retention of a larger portion of any
profits produced by efficiency
improvements—as well as reducing the
administrative burden for the provider
and the Commission. Would these
benefits outweigh the risks posed by the
potential for unpredicted cost increases
or fall-off in demand? Alternatively,
would a shorter period be preferable, to
address cost predictability concerns,
while retaining some of the benefit of a
multi-year plan? The Commission seeks
comment on the extent to which a
compensation period of longer than
three years would make a material
difference to such firms’ capacity to
provide and improve IP Relay service.
Recognizing that, if over a given
compensation period, costs were to rise
substantially, and providers would have
strong incentives to present a robust
petition explaining their need, and thus
obtain relief, to what extent would any
benefits of a longer compensation
period justify the risks of
overcompensation that would occur if
costs were to fall significantly over the
period?
27. Are IP Relay costs sufficiently
predictable to warrant setting a base
compensation amount for a multi-year
period? Alternatively, is the variability
in IP Relay costs sufficiently
unpredictable that the Commission
should reassess the IP Relay
compensation level annually? The
Commission seeks comment on the costeffectiveness of this alternative
approach relative to the current
approach or other alternative
approaches. Would the resulting yearto-year uncertainty and reduced
incentives for efficiency and innovation
be outweighed by the greater flexibility
to ensure full cost recovery in response
to unpredicted cost and demand
changes? Are there net benefits of this
alternative that would outweigh any
increased administrative burden on the
provider and the Commission?
28. The Commission also seeks
comment on whether compensation
decisions based on cost determinations,
whether made annually or at longer
intervals, should be made by the full
Commission, or by the Bureau under
delegated authority. Further, should
other decisions—e.g., approval of
annual changes based on preset
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64443
adjustment factors, determinations
regarding exogenous cost claims, and
grant or denial of requests for waiver of
compensation rules—be made at the
Commission or Bureau level?
29. Compensation Adjustments
During a Multi-Year Period. If the
Commission continues setting IP Relay
compensation for a multi-year period, it
seeks comment on whether to continue
the current practice of adjusting the
compensation level in subsequent years
of the cycle, and if so, whether to
modify the criteria for such adjustments.
30. Inflation Adjustment. Should the
Commission continue to apply an
annual inflation adjustment to the base
compensation level, and if so, how
should the adjustment be determined?
The current methodology uses an
inflation factor based on the Gross
Domestic Product—Price Index (GDP–
PI) to adjust the compensation level
upward. Is the GDP–PI a reasonably
accurate predictor of inflation in IP
Relay costs? Would another price index
provide a better measure? For example,
because IP Relay is currently a laborintensive service, should the
Commission select a measure from the
Bureau of Labor Statistics’ (BLS)
Employment Cost Index: Historical
Listing Volume III (April 2021),
available at https://www.bls.gov/web/
eci/echistrynaics.pdf, which tracks
measures of labor cost for various
industry segments—for example, the
seasonally-adjusted ‘‘office and
administrative support,’’ ‘‘serviceproviding industries,’’ ‘‘other services
except public administration,’’ or the
non-seasonally-adjusted ‘‘office and
administrative support,’’ indices?
Which measure or measures of inflation
in this index would be most appropriate
for IP Relay? Is there another general or
sector-specific cost index that would
more accurately predict changes in IP
Relay cost?
31. Efficiency Adjustment. The
Commission also established an
efficiency factor, used to adjust the
compensation level in a downward
direction to reflect expected
productivity improvements. The
Commission seeks comment on how
best to measure expected efficiency
gains for this particular service. What
are the potential sources of annual
efficiency gains in IP Relay, and how
should the extent of annual efficiency
gains be estimated? Alternatively,
should the Commission eliminate the
efficiency factor?
32. Exogenous Costs. The IP Relay
base compensation level can be adjusted
upward to permit recovery of exogenous
costs, which are ‘‘costs beyond the
control of the IP Relay providers that are
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not reflected in the inflation
adjustment,’’ such as a new service
requirement adopted by the
Commission. Should the Commission
retain this aspect of the methodology? If
so, are there other types of exogenous
costs that warrant inclusion? Should the
Commission broaden the definition of
exogenous costs? Should the
Commission apply the allowable cost
criteria adopted in the 2017 VRS
Compensation Order, published at 82
FR 39673, August 22, 2017, which allow
upward compensation adjustment for
well-documented exogenous costs that
(1) belong to a category of costs that the
Commission has deemed allowable, (2)
result from new TRS requirements or
other causes beyond the provider’s
control, (3) are new costs that were not
factored into the applicable
compensation rates, and (4) if
unrecovered, would cause a provider’s
current allowable-expenses-plusoperating margin to exceed its revenues?
33. Other Adjustments. In addition to
adjustments for inflation, efficiency, and
exogenous costs, are there other types of
adjustments to the IP Relay
compensation level that the
Commission should be making in
subsequent years of a multi-year rate
cycle?
MARS compensation approach as a
starting point for setting IP Relay
compensation, and believes that
attempting to revert to a version of the
MARS methodology would likely result
in significant overcompensation for IP
Relay, wasting TRS funds. The
Commission also is not persuaded that
T-Mobile’s proposed methodology
would be any less difficult to apply or
subject to inaccuracy than the current
methodology, and T-Mobile’s proposal
appears inconsistent with recent
Commission precedent. The
Commission seeks comment on the
concerns stated above. Are there other
factors that merit consideration of TMobile’s proposal? Would the hybrid
MARS approach better serve the
compensation-setting policy goals
articulated above?
37. Other Methodologies. Are there
other compensation methodologies that
the Commission should consider for IP
Relay to achieve its policy goals?
Initial Regulatory Flexibility Analysis
38. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared
this Initial Regulatory Flexibility
Analysis (IRFA) of the possible
significant economic impact on a
substantial number of small entities by
Alternative Compensation
the policies and rules proposed in the
Methodologies
Notice. Written public comments are
34. Hybrid MARS Approach. T-Mobile requested on this IRFA. Comments must
proposes that in setting a new IP Relay
be identified as responses to the IRFA
compensation level, the Commission
and must be filed by the deadline for
should take as a starting point the percomments on the Notice provided in the
minute compensation for interstate
item. The Commission will send a copy
TTY-based TRS, which is currently set
of the entire Notice, including this
using the MARS method. The
IRFA, to the Chief Counsel for Advocacy
Commission would multiply the average of the Small Business Administration
per-minute rate of TTY-based TRS
(SBA).
compensation by the projected number
Need for, and Objectives of the
of IP Relay minutes, subtract those
Proposed Rules
provider costs that are incurred only in
providing TTY-based TRS, and add
39. In the Notice, the Commission
costs that are incurred only in providing proposes to reform the compensation
IP Relay. The resulting funding
methodology for IP Relay. To develop a
requirement would be divided by
complete record, the Commission seeks
projected IP Relay demand to determine comment on whether and how to
the per-minute compensation level.
modify the process for setting projected35. The Commission invites advocates cost-based IP Relay compensation,
of this approach to identify the specific
including whether certain costs that are
categories of costs they believe would be currently not allowed should be
appropriate to add and subtract to
compensable, the methodology for
achieve an appropriate per-minute
calculating the compensation amount,
compensation level using such a hybrid and alternative approaches. The
MARS methodology. Which categories
Commission takes these steps to allow
of TTY-based TRS costs, specifically,
recovery of reasonable provider costs
are not incurred to provide IP Relay,
and ensure that functionally equivalent
which categories of IP Relay costs are
IP Relay is provided in the most
not incurred to provide TTY-based TRS, efficient manner.
and what are the estimated current costs
Legal Basis
in each of those categories?
40. The authority for this proposed
36. The Commission is unpersuaded
rulemaking is contained in sections 1, 2,
that it would be appropriate to use a
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16:27 Nov 17, 2021
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PO 00000
Frm 00037
Fmt 4702
Sfmt 9990
and 225 of the Communications Act of
1934, as amended, 47 U.S.C. 151, 152,
225.
Small Entities Impacted
41. The proposals in the document
FCC 21–95 will affect the obligations of
IP Relay providers. These services can
be included within the broad economic
category of All Other
Telecommunications.
Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
42. The proposed compensation
methodology will not create new
reporting, recordkeeping, or other
compliance requirements.
Steps Taken To Minimize Significant
Impact on Small Entities, and
Significant Alternatives Considered
43. Throughout the Notice, the
Commission is (1) taking steps to
minimize the impact on small entities
by proposing reforms to the IP Relay
compensation methodology that would
ensure that providers of IP Relay are
fairly compensated for the provision of
IP Relay, including considering
significant alternatives by identifying
and seeking comment on multiple
methodologies for compensation; and
(2) considering various options to
determine the best compensation
methodology for ensuring functionally
equivalent service and maintaining an
efficient IP Relay market over the long
term in accordance with the
Commission’s statutory obligations. The
Notice seeks comment on the effect
these proposals will have on all entities
that have the potential to provide IP
Relay, including small entities.
44. The Notice seeks comment from
all interested parties. Small entities are
encouraged to bring to the
Commission’s attention any specific
concerns they may have with the
proposals outlined in the Notice. The
Commission expects to consider the
economic impact on small entities, as
identified in comments filed in response
to the Notice, in reaching its final
conclusions and acting in this
proceeding.
Federal Rules Which Duplicate,
Overlap, or Conflict With, the
Commission’s Proposals
45. None.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2021–24945 Filed 11–17–21; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\18NOP1.SGM
18NOP1
Agencies
[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Proposed Rules]
[Pages 64440-64444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24945]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[CG Docket No. 03-123; RM-11820; FCC 21-95; FR ID 57163]
Internet Protocol Relay Service Compensation Methodology
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission (FCC
or Commission) proposes to modify the methodology for determining
compensation for the provision of internet Protocol Relay (IP Relay)
service and seeks comments on modifying the formula for determining the
per-minute compensation for providers of IP Relay to ensure Interstate
TRS Fund support is sufficient to sustain a functionally equivalent
telephone service.
DATES: Comments are due December 20, 2021; reply comments are due
January 18, 2022.
ADDRESSES: You may submit comments, identified by CG Docket No. 03-123
and RM-11820, by either of the following methods:
Federal Communications Commission's Website: https://www.fcc.gov/ecfs/filings. Follow the instructions for submitting
comments.
Paper Filers: Parties who choose to file by paper must
file an original and one copy of each filing. Filings can be sent by
hand or messenger delivery, by commercial overnight courier, or by
first-class or overnight U.S. Postal Service mail. Currently, the
Commission does not accept any hand delivered or messenger delivered
filings as a temporary measure taken to help protect the health and
safety of individuals, and to mitigate the transmission of COVID-19.
All filings must be addressed to the Commission's Secretary, Office of
the Secretary, Federal Communications Commission.
For detailed instructions on submitting comments and additional
information on the rulemaking process, see document FCC 21-95 at:
https://docs.fcc.gov/public/attachments/FCC-21-95A1.pdf.
FOR FURTHER INFORMATION CONTACT: William Wallace, Consumer and
[[Page 64441]]
Governmental Affairs Bureau, at 202-418-2716, or
[email protected].
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice
of Proposed Rulemaking (Notice), document FCC 21-95, adopted on August
5, 2021, released on August 6, 2021, in CG Docket No. 03-123 and RM-
11820. The full text of document FCC 21-95 is available for public
inspection and copying via the Commission's Electronic Comment Filing
System (ECFS).
To request materials in accessible formats for people with
disabilities (Braille, large print, electronic files, audio format),
send an email to [email protected] or call the Consumer and Governmental
Affairs Bureau at (202) 418-0530.
This proceeding shall be treated as a ``permit-but-disclose''
proceeding in accordance with the Commission's ex parte rules. 47 CFR
1.1200 et seq. Persons making ex parte presentations must file a copy
of any written presentation or a memorandum summarizing any oral
presentation within two business days after the presentation (unless a
different deadline applicable to the Sunshine period applies). Persons
making oral ex parte presentations are reminded that memoranda
summarizing the presentation must (1) list all persons attending or
otherwise participating in the meeting at which the ex parte
presentation was made, and (2) summarize all data presented and
arguments made during the presentation. If the presentation consisted
in whole or in part of the presentation of data or arguments already
reflected in the presenter's written comments, memoranda or other
filings in the proceeding, the presenter may provide citations to such
data or arguments in his or her prior comments, memoranda, or other
filings (specifying the relevant page and/or paragraph numbers where
such data or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with Sec. 1.1206(b). In proceedings governed by
Sec. 1.49(f) or for which the Commission has made available a method
of electronic filing, written ex parte presentations and memoranda
summarizing oral ex parte presentations, and all attachments thereto,
must be filed through the electronic comment filing system available
for that proceeding, and must be filed in their native format (e.g.,
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding
should familiarize themselves with the Commission's ex parte rules.
Initial Paperwork Reduction Act of 1995 Analysis
The Notice in document FCC 21-95 seeks comment on proposed rule
amendments to the compensation methodology that may result in modified
information collection requirements. If the Commission adopts any
modified information collection requirements, the Commission will
publish another document in the Federal Register inviting the public to
comment on the requirements, as required by the Paperwork Reduction
Act. Public Law 104-13; 44 U.S.C. 3501-3520.
In addition, pursuant to the Small Business Paperwork Relief Act of
2002, the Commission seeks comment on how it might further reduce the
information collection burden for small business concerns with fewer
than 25 employees. Public Law 107-198; 44 U.S.C. 3506(c)(4).
Synopsis
1. In document FCC 21-95, the Commission proposes to modify the
methodology for setting compensation for IP Relay, a form of
Telecommunications Relay Service (TRS).
2. With IP Relay, an individual with a hearing or speech disability
can communicate with voice telephone users by transmitting text via the
internet. The text transmission is delivered to an IP Relay call
center, where a communications assistant (CA) converts the user's text
to speech for the hearing party and converts that party's speech to
text for the IP Relay user.
3. IP Relay is supported by the TRS Fund in accordance with a
methodology approved by the Commission in 2007. A base level of per-
minute compensation is approved based on the weighted average of
providers' reasonable costs and remains effective for a three-year
period. In addition, an adjustment factor is set to be applied to the
base amount to determine per-minute compensation for the second and
third years, which reflects an increase due to inflation, offset by a
decrease due to cost efficiencies. The base compensation amount also is
subject to upward adjustment to account for exogenous costs, i.e.,
those costs beyond the control of the IP Relay providers that are not
reflected in the inflation adjustment. At the end of each three-year
period, the base compensation level is reset based on average provider
costs. The current compensation period runs from July 1, 2019, to June
30, 2022.
4. Since 2007, there have been substantial changes in the
circumstances relevant to TRS Fund support of IP Relay. In 2013 and
2014, four of the five IP Relay providers exited the market, and IP
Relay demand declined precipitously. After November 2014, Sprint
Corporation (now T-Mobile USA, Inc.) was the sole provider of IP Relay
service, and demand stabilized.
5. In response to these developments, the Consumer and Governmental
Affairs Bureau (CGB or Bureau) has taken a number of steps to ensure
that TRS Fund support for IP Relay was sufficient to sustain the
service and allow the remaining provider to ascertain and meet the
needs of consumers relying on it for functionally equivalent telephone
service.
6. In 2016, the Bureau partially waived the Commission rule
prohibiting TRS Fund support of IP Relay provider-directed outreach
activities to allow T-Mobile to effectively educate deafblind consumers
about its service and solicit feedback on how to improve it. The Bureau
renewed this waiver in subsequent years.
7. In 2019, the Bureau allowed recovery of an operating margin,
determined as a percentage of annual expenses, in lieu of the rate of
return on capital investment previously allowed. In renewing the
previously granted waiver permitting provider recovery of expenses for
outreach to the deafblind community, the Bureau expanded the scope of
that waiver to include outreach to other potential users of this
service.
8. In November 2018, Sprint (now T-Mobile) filed a petition for
rulemaking requesting a new compensation methodology. The company
proposed that the Commission adopt a new approach based substantially
on the Multi-State Average Rate Structure (MARS) compensation plan for
TTY-based TRS offered through state TRS programs.
9. The Commission proposes to amend the compensation rules for IP
Relay to take account of the changed environment in which this service
is provided. The Commission believes it should continue the practice of
periodically re-setting the compensation level based on determinations
of reasonable provider cost. As the Commission explained last year when
setting compensation for internet Protocol Captioned Telephone Service
(IP CTS) in the IP CTS Compensation Methodology Order, published at 85
FR 64971, October 14, 2020, over a long period ``the Commission has
developed a consistent approach to determining
[[Page 64442]]
the reasonable costs of providing TRS, which can be applied without
imposing undue administrative burdens on either providers or the
Commission.'' Further, ``[a]lthough any ratemaking method is subject to
imprecision, provider cost data, which is subject to audit, has been
reasonably reliable and consistent,'' and ``the Commission's
determinations regarding allowability of costs are solidly reasoned and
have been upheld on judicial review.'' The Commission seeks comment on
whether these general observations continue to hold true for IP Relay.
10. The Commission proposes to continue setting the compensation
level for a multi-year period, subject to annual adjustment based on
predetermined factors. The Commission proposes a number of changes in
how reasonable costs are determined, and seeks comment on whether to
change the specific duration of the compensation period and on the
appropriate criteria for annual adjustment of the compensation level,
as well as other aspects of the methodology. The Commission seeks
comment on which specific aspects of the cost-based approach have been
problematic in the IP Relay context and how they could be improved. The
Commission seeks additional comment on the MARS-based alternative
proposed in T-Mobile's petition for rulemaking, and invites commenters
to suggest additional alternative compensation methodologies.
Benefits of IP Relay
11. The Commission seeks granular information on which segments of
the TRS-eligible population primarily use and benefit from this
service. How many deafblind individuals use IP Relay and how many
minutes of use do they represent? The Commission seeks comment on the
best way to determine or estimate these numbers. What features of IP
Relay are critical for this customer segment? What proportion of IP
Relay users represent people who became deaf or hard of hearing early
in life, and are unable to use VRS because they do not know ASL? To
what extent is IP Relay used to make 911 calls, and what advantages
does it offer in this regard? To what extent do other forms of TRS (or
other communications services, such as real-time text) provide an
effective substitute to IP Relay for individuals who might otherwise
rely on the service as their sole or primary means of telephone
communication? To what extent do people who lose hearing later in life
find IP Relay beneficial, despite the availability of other options,
such as IP CTS? Would a person with close to 100% hearing loss find IP
Relay preferable to IP CTS? Would such a preference depend on how much
an individual's speech is affected, or other factors? The Commission
seeks comment on whether there has been enough outreach and education
to the deafblind community by the Commission and TRS providers and
whether more is needed. Would increased outreach and education to the
deafblind community regarding the availability and merits of each type
of TRS increase legitimate demand for IP Relay?
Allowable Expenses
12. The Commission has made a number of determinations, both for
TRS generally and for specific relay services, as to whether various
categories of costs are allowable for recovery from the TRS Fund as
reasonable costs of providing TRS. The Commission seeks comment on
possible amendments to the allowable cost rules.
13. Outreach. The Commission proposes to rescind the current
prohibition on outreach recovery by IP Relay providers and seeks
comment on this proposal, its costs and benefits, and the underlying
rationale stated below.
14. First, CGB has found that in the absence of competition,
providing economic incentive for outreach and education by the sole
service provider may be critical to effectively educate consumers--
including consumers who are deafblind and others--regarding the
availability of and improvements to the service. The Commission invites
comment on the extent to which outreach for this purpose continues to
be needed and the resulting benefits.
15. Second, with only one IP Relay provider, the Commission
believes that provider outreach expenditures in this context are more
likely to be focused appropriately on educating existing and potential
IP Relay users about the service rather than on encouraging or
preventing ``churn'' among existing customers, would therefore be more
effective for their intended purpose than when the outreach ban was
adopted, and would not likely duplicate other outreach efforts.
Finally, a review of the outreach reports submitted by T-Mobile in
response to the resumption of compensated outreach activity has not
shown that they are misdirected toward ineligible users. Therefore, the
Commission does not believe such efforts would contribute to a
recurrence of the kind of misuse of IP Relay that occurred prior to
2015. The Commission seeks comment on these assumptions.
16. The Commission seeks comment on whether to limit allowable
outreach expenses to a specified percentage or amount, and, if so, what
percentage or amount should be allowed. How should the Commission
measure the effectiveness of outreach efforts--based on the number of
new users or on some other basis? Should the Commission continue to
require the filing of regular reports to ensure that outreach expenses
are beneficial and effectively educating consumers about IP Relay
service, and if so, on what schedule? Should the Commission continue to
require separate reporting of general and deafblind outreach activities
and the associated costs?
17. Indirect Overhead. The Commission seeks comment on whether to
modify, with respect to IP Relay, the Commission's rule allowing
recovery for only those overhead costs directly related to and directly
supporting the provision of relay service and whether there is a
continuing need for this rule in the IP Relay context.
18. First, is the current rule effectively mandated by section 225
of the Communications Act of 1934, as amended? 47 U.S.C. 225. Given
that only some current providers of TRS are common carriers, does the
Commission have more flexibility in determining what costs are
reasonable?
19. Second, the Commission seeks comment on the cost-effectiveness
of the current rule, relative to alternatives, notably allowing a
reasonable contribution toward overhead costs. To what extent is it
feasible for a multi-service provider to track administrative costs
directly, to the extent they are attributable to the provision of TRS?
Is it unduly burdensome to require a demonstration of cost causation
for such costs, e.g., by maintaining time records for staff time
attributable to IP Relay? What specific kinds of administrative costs
that are not currently recoverable would be recovered if allocation of
overhead were permitted? The Commission seeks comment on whether there
are circumstances specific to the current context of IP Relay, such as
the presence of only one provider, that make the rule more burdensome
or less appropriate for application to this service, compared to other
forms of TRS? How much would allowing support for such costs increase
per-minute IP Relay compensation? Is there any risk T-Mobile would
abandon TRS if it continued to receive no contribution to overheads but
continued to be fully compensated for all costs attributed to TRS?
20. If the Commission were to allow recovery of overhead costs,
i.e., administrative costs not directly attributable to TRS, how should
such
[[Page 64443]]
costs be allocated--based on the percentage of total revenues derived
from IP Relay, percentage of total company costs, or by some other
method? How could the Commission or Fund administrator effectively
audit such allocations?
21. Other Allowable Costs. Are there other costs incurred in the
provision of IP Relay that the Commission's methodology should allow?
Operating Margin
22. The Commission proposes to amend its compensation rules to
affirm that the IP Relay compensation level should include an operating
margin--i.e., an allowance for recovery of a designated percentage of
allowed expenses, in lieu of return on investment. The Commission seeks
comment on this proposal and its cost-effectiveness.
23. The Commission seeks comment on what percentage of allowable
expenses constitutes a reasonable operating margin for IP Relay. By
what criteria should the allowed operating margin be determined? Is
business risk assessment an appropriate measure for setting the
operating margin for IP Relay? Due to the level of business risk, or
for other reasons, should the operating margin for IP Relay be
different from that for other forms of TRS? Is the operating margin of
12.35%, determined by the Bureau in 2019, a reasonable margin going
forward, or should a different allowed margin be selected? Have there
been recent changes in capital markets that would support increasing or
decreasing this margin? The Commission seeks comment on whether future
determinations of an operating margin for IP Relay should be made by
the Commission itself or could be delegated to the Bureau.
Projected Versus Historical Costs
24. The Commission proposes to return to the pre-2019 practice of
using only projected costs and demand as the basis for calculating the
base compensation level for IP Relay and seeks comment on this proposal
and its cost-effectiveness relative to other approaches. The Commission
invites the submission of evidence regarding the likelihood that the
current level of cost increases in IP Relay are likely to continue or
to prove to be a temporary phenomenon.
Compensation Period and Adjustments
25. Duration of Compensation Period. The Commission proposes to
continue setting IP Relay compensation for a multi-year period and
seeks comment on this proposal and whether it will provide benefits in
the IP Relay context.
26. Assuming that the Commission continues setting compensation for
a multi-year period, should the duration continue to be three years? A
longer compensation period, such as four or five years, would
potentially offer a provider greater certainty for the purpose of long-
term planning and allow retention of a larger portion of any profits
produced by efficiency improvements--as well as reducing the
administrative burden for the provider and the Commission. Would these
benefits outweigh the risks posed by the potential for unpredicted cost
increases or fall-off in demand? Alternatively, would a shorter period
be preferable, to address cost predictability concerns, while retaining
some of the benefit of a multi-year plan? The Commission seeks comment
on the extent to which a compensation period of longer than three years
would make a material difference to such firms' capacity to provide and
improve IP Relay service. Recognizing that, if over a given
compensation period, costs were to rise substantially, and providers
would have strong incentives to present a robust petition explaining
their need, and thus obtain relief, to what extent would any benefits
of a longer compensation period justify the risks of overcompensation
that would occur if costs were to fall significantly over the period?
27. Are IP Relay costs sufficiently predictable to warrant setting
a base compensation amount for a multi-year period? Alternatively, is
the variability in IP Relay costs sufficiently unpredictable that the
Commission should reassess the IP Relay compensation level annually?
The Commission seeks comment on the cost-effectiveness of this
alternative approach relative to the current approach or other
alternative approaches. Would the resulting year-to-year uncertainty
and reduced incentives for efficiency and innovation be outweighed by
the greater flexibility to ensure full cost recovery in response to
unpredicted cost and demand changes? Are there net benefits of this
alternative that would outweigh any increased administrative burden on
the provider and the Commission?
28. The Commission also seeks comment on whether compensation
decisions based on cost determinations, whether made annually or at
longer intervals, should be made by the full Commission, or by the
Bureau under delegated authority. Further, should other decisions--
e.g., approval of annual changes based on preset adjustment factors,
determinations regarding exogenous cost claims, and grant or denial of
requests for waiver of compensation rules--be made at the Commission or
Bureau level?
29. Compensation Adjustments During a Multi-Year Period. If the
Commission continues setting IP Relay compensation for a multi-year
period, it seeks comment on whether to continue the current practice of
adjusting the compensation level in subsequent years of the cycle, and
if so, whether to modify the criteria for such adjustments.
30. Inflation Adjustment. Should the Commission continue to apply
an annual inflation adjustment to the base compensation level, and if
so, how should the adjustment be determined? The current methodology
uses an inflation factor based on the Gross Domestic Product--Price
Index (GDP-PI) to adjust the compensation level upward. Is the GDP-PI a
reasonably accurate predictor of inflation in IP Relay costs? Would
another price index provide a better measure? For example, because IP
Relay is currently a labor-intensive service, should the Commission
select a measure from the Bureau of Labor Statistics' (BLS) Employment
Cost Index: Historical Listing Volume III (April 2021), available at
https://www.bls.gov/web/eci/echistrynaics.pdf, which tracks measures of
labor cost for various industry segments--for example, the seasonally-
adjusted ``office and administrative support,'' ``service-providing
industries,'' ``other services except public administration,'' or the
non-seasonally-adjusted ``office and administrative support,'' indices?
Which measure or measures of inflation in this index would be most
appropriate for IP Relay? Is there another general or sector-specific
cost index that would more accurately predict changes in IP Relay cost?
31. Efficiency Adjustment. The Commission also established an
efficiency factor, used to adjust the compensation level in a downward
direction to reflect expected productivity improvements. The Commission
seeks comment on how best to measure expected efficiency gains for this
particular service. What are the potential sources of annual efficiency
gains in IP Relay, and how should the extent of annual efficiency gains
be estimated? Alternatively, should the Commission eliminate the
efficiency factor?
32. Exogenous Costs. The IP Relay base compensation level can be
adjusted upward to permit recovery of exogenous costs, which are
``costs beyond the control of the IP Relay providers that are
[[Page 64444]]
not reflected in the inflation adjustment,'' such as a new service
requirement adopted by the Commission. Should the Commission retain
this aspect of the methodology? If so, are there other types of
exogenous costs that warrant inclusion? Should the Commission broaden
the definition of exogenous costs? Should the Commission apply the
allowable cost criteria adopted in the 2017 VRS Compensation Order,
published at 82 FR 39673, August 22, 2017, which allow upward
compensation adjustment for well-documented exogenous costs that (1)
belong to a category of costs that the Commission has deemed allowable,
(2) result from new TRS requirements or other causes beyond the
provider's control, (3) are new costs that were not factored into the
applicable compensation rates, and (4) if unrecovered, would cause a
provider's current allowable-expenses-plus-operating margin to exceed
its revenues?
33. Other Adjustments. In addition to adjustments for inflation,
efficiency, and exogenous costs, are there other types of adjustments
to the IP Relay compensation level that the Commission should be making
in subsequent years of a multi-year rate cycle?
Alternative Compensation Methodologies
34. Hybrid MARS Approach. T-Mobile proposes that in setting a new
IP Relay compensation level, the Commission should take as a starting
point the per-minute compensation for interstate TTY-based TRS, which
is currently set using the MARS method. The Commission would multiply
the average per-minute rate of TTY-based TRS compensation by the
projected number of IP Relay minutes, subtract those provider costs
that are incurred only in providing TTY-based TRS, and add costs that
are incurred only in providing IP Relay. The resulting funding
requirement would be divided by projected IP Relay demand to determine
the per-minute compensation level.
35. The Commission invites advocates of this approach to identify
the specific categories of costs they believe would be appropriate to
add and subtract to achieve an appropriate per-minute compensation
level using such a hybrid MARS methodology. Which categories of TTY-
based TRS costs, specifically, are not incurred to provide IP Relay,
which categories of IP Relay costs are not incurred to provide TTY-
based TRS, and what are the estimated current costs in each of those
categories?
36. The Commission is unpersuaded that it would be appropriate to
use a MARS compensation approach as a starting point for setting IP
Relay compensation, and believes that attempting to revert to a version
of the MARS methodology would likely result in significant
overcompensation for IP Relay, wasting TRS funds. The Commission also
is not persuaded that T-Mobile's proposed methodology would be any less
difficult to apply or subject to inaccuracy than the current
methodology, and T-Mobile's proposal appears inconsistent with recent
Commission precedent. The Commission seeks comment on the concerns
stated above. Are there other factors that merit consideration of T-
Mobile's proposal? Would the hybrid MARS approach better serve the
compensation-setting policy goals articulated above?
37. Other Methodologies. Are there other compensation methodologies
that the Commission should consider for IP Relay to achieve its policy
goals?
Initial Regulatory Flexibility Analysis
38. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), the Commission has prepared this Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on a substantial number of small entities by the policies and rules
proposed in the Notice. Written public comments are requested on this
IRFA. Comments must be identified as responses to the IRFA and must be
filed by the deadline for comments on the Notice provided in the item.
The Commission will send a copy of the entire Notice, including this
IRFA, to the Chief Counsel for Advocacy of the Small Business
Administration (SBA).
Need for, and Objectives of the Proposed Rules
39. In the Notice, the Commission proposes to reform the
compensation methodology for IP Relay. To develop a complete record,
the Commission seeks comment on whether and how to modify the process
for setting projected-cost-based IP Relay compensation, including
whether certain costs that are currently not allowed should be
compensable, the methodology for calculating the compensation amount,
and alternative approaches. The Commission takes these steps to allow
recovery of reasonable provider costs and ensure that functionally
equivalent IP Relay is provided in the most efficient manner.
Legal Basis
40. The authority for this proposed rulemaking is contained in
sections 1, 2, and 225 of the Communications Act of 1934, as amended,
47 U.S.C. 151, 152, 225.
Small Entities Impacted
41. The proposals in the document FCC 21-95 will affect the
obligations of IP Relay providers. These services can be included
within the broad economic category of All Other Telecommunications.
Description of Projected Reporting, Recordkeeping, and Other Compliance
Requirements
42. The proposed compensation methodology will not create new
reporting, recordkeeping, or other compliance requirements.
Steps Taken To Minimize Significant Impact on Small Entities, and
Significant Alternatives Considered
43. Throughout the Notice, the Commission is (1) taking steps to
minimize the impact on small entities by proposing reforms to the IP
Relay compensation methodology that would ensure that providers of IP
Relay are fairly compensated for the provision of IP Relay, including
considering significant alternatives by identifying and seeking comment
on multiple methodologies for compensation; and (2) considering various
options to determine the best compensation methodology for ensuring
functionally equivalent service and maintaining an efficient IP Relay
market over the long term in accordance with the Commission's statutory
obligations. The Notice seeks comment on the effect these proposals
will have on all entities that have the potential to provide IP Relay,
including small entities.
44. The Notice seeks comment from all interested parties. Small
entities are encouraged to bring to the Commission's attention any
specific concerns they may have with the proposals outlined in the
Notice. The Commission expects to consider the economic impact on small
entities, as identified in comments filed in response to the Notice, in
reaching its final conclusions and acting in this proceeding.
Federal Rules Which Duplicate, Overlap, or Conflict With, the
Commission's Proposals
45. None.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2021-24945 Filed 11-17-21; 8:45 am]
BILLING CODE 6712-01-P