TRS Fund Contributions, 72409-72413 [2022-25294]

Download as PDF Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Rules and Regulations the DBS space station exceeds these bounds on inclination and eccentricity, it may not claim protection from any additional space path interference arising as a result of its inclined or eccentric operations and may only claim protection as if it were operating within the bounds listed in paragraphs (i)(1) and (2) of this section: * * * * * [FR Doc. 2022–23674 Filed 11–23–22; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 64 [CG Docket Nos. 03–123, 10–51, 12–38; FCC 22–49; FR ID 114537] TRS Fund Contributions Federal Communications Commission. ACTION: Final rule. AGENCY: The Federal Communications Commission (Commission) modifies the cost recovery rules for funding two forms of internet-based telecommunications relay services (TRS)—video relay service (VRS) and internet Protocol Relay Service (IP Relay). The Commission expands the Interstate TRS Fund (TRS Fund or Fund) contribution base for support of those services to include intrastate as well as interstate end-user revenues of TRS Fund contributors. This action will ensure fair treatment of intrastate and interstate communications services and users in the funding of relay services. DATES: Effective date: This rule is effective December 27, 2022. Compliance date: July 1, 2023. FOR FURTHER INFORMATION CONTACT: Michael Scott, Disability Rights Office, Consumer & Governmental Affairs Bureau, at (202) 418–1264 or Michael.Scott@fcc.gov. SUPPLEMENTARY INFORMATION: This is a summary of the Report and Order, document FCC 22–49, adopted June 26, 2022, released June 30, 2022, in CG Docket Nos. 03–123, 10–51, and 12–38. The Commission previously sought comment on these issues in Telecommunications Relay Services and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities, Structure and Practices of the Video Relay Service Program, Misuse of internet Protocol (IP) Relay Service, Notice of Proposed Rulemaking (NPRM), CG Docket Nos. 03–123, 10–51, and 12–38, FCC 20–161, published at 86 khammond on DSKJM1Z7X2PROD with RULES SUMMARY: VerDate Sep<11>2014 15:54 Nov 23, 2022 Jkt 259001 FR 14859, March 19, 2021. 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 (voice). Synopsis 1. Background. Section 225 of the Communications Act of 1934, as amended (the Act), requires the Commission to ensure that both ‘‘interstate and intrastate’’ TRS are available ‘‘to the extent possible and in the most efficient manner.’’ 47 U.S.C. 225(b)(1). The Act directs the Commission to adopt, administer, and enforce regulations governing the provision of interstate and intrastate TRS, including rules on cost separation, which ‘‘shall generally provide’’ that interstate TRS costs are recovered from all subscribers for every interstate service and intrastate TRS costs are recovered from the intrastate jurisdiction. The Act also authorizes, but does not require, the establishment of state-administered TRS programs, subject to approval by the Commission. Currently, all 50 states, the District of Columbia, and several United States territories have TRS programs approved by the Commission. For ease of reference, The Commission refers to all state and territory TRS programs as state TRS programs. The Commission requires that state TRS programs include text-based TRS and speech-tospeech relay (STS). 2. To provide for the recovery of interstate TRS costs, the Commission established the interstate TRS Fund in 1993. Telecommunications carriers, as well as providers of interconnected and non-interconnected voice-over-internetProtocol (VoIP) service, are required to contribute to the TRS Fund, on a quarterly basis, a specified percentage of their end-user revenues for the prior year. Providers of international as well as interstate services are currently required to contribute to the TRS Fund. For ease of reference, the Commission uses the term ‘‘interstate’’ to mean ‘‘interstate and international.’’ 3. Although initially limited to supporting interstate TRS, the scope of the TRS Fund changed beginning in 2000, as the Commission authorized internet-based forms of TRS—VRS, IP Relay, and internet Protocol Captioned Telephone Service (IP CTS). VRS is a form of TRS that enables people with hearing or speech disabilities who use sign language to make telephone calls over broadband with a videophone. IP Relay is a form of TRS that permits an individual with a hearing or a speech PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 72409 disability to communicate in text using an internet Protocol-enabled device via the internet. IP CTS is a form of TRS that permits an individual who can speak but who has difficulty hearing over the telephone to use a telephone and an internet Protocol-enabled device via the internet to simultaneously listen to the other party and read captions of what the other party is saying. 4. When the Commission first authorized use of internet-based forms of TRS, it decided, as an interim measure to speed the development of these services, that all of the costs of providing internet-based TRS should be paid by contributors to the TRS Fund, based only on their interstate end-user revenues. This approach was deemed preferable to burdening state relay programs with the responsibility to fund and supervise, on a state-by-state basis, the provision of intrastate relay services via these nascent technologies. In those proceedings, the Commission did not consider the alternative, adopted here, of expanding the TRS Fund contribution base to include intrastate end-user revenues. However, the Commission stated an intention to revisit these interim funding arrangements in the future. 5. In 2019, the Commission revisited the funding arrangement for one form of internet-based TRS, IP CTS. Recognizing that the ‘‘interim’’ funding mechanism for IP CTS disproportionately burdens providers and users of interstate services, the Commission concluded it was no longer justifiable. Therefore, the Commission amended its rules to expand the TRS Fund contribution base for that service to include intrastate as well as interstate end-user revenues. TRS Fund Contributions, Document FCC 19–118, published at 85 FR 462, January 6, 2020 (IP CTS Contributions Order). 6. Discussion. The Commission amends its rules to provide that TRS Fund contributions for the support of VRS and IP Relay shall be calculated based on the total interstate and intrastate end-user revenues of each telecommunications carrier and VoIP service provider. The Commission thereby replaces ‘‘interim’’ funding measures adopted nearly two decades ago. The record supports the Commission’s conclusion that the rules it adopts will provide a fair allocation of TRS Fund contribution obligations among those entities subject to its TRS funding authority. The total contributions needed to support the TRS Fund will not be affected, but the Commission anticipates that (assuming there is no unrelated change in the TRS Fund budget for supporting these E:\FR\FM\25NOR1.SGM 25NOR1 khammond on DSKJM1Z7X2PROD with RULES 72410 Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Rules and Regulations services) TRS Fund contributions paid as a percentage of interstate end-user revenues for the support of VRS and IP Relay will decline by approximately 55%. 7. The Commission adopts this rule change for the reasons set forth in the NPRM. First, the current funding arrangements for VRS and IP Relay were authorized some 20 years ago as interim measures to speed the development of these services, and that purpose has been achieved. VRS is the second largest TRS program, and IP Relay’s annual minutes exceed the annual TRS Fundsupported minutes of all state TRS programs combined. 8. Second, the Commission’s action corrects the inherent inequity of the current funding arrangements. VRS and IP Relay, which cumulatively require close to $540 million in TRS Fund backing, are supported entirely from interstate end-user telecommunications and VoIP revenues, with 0% contribution from intrastate revenues. By contrast, approximately 76% of the costs of relay services provided through state TRS programs are funded from intrastate sources, and, since the Commission’s 2019 IP CTS funding reforms were implemented, approximately 55% of IP CTS costs are funded from intrastate end-user revenues. The Commission notes that contributions to support IP CTS are divided between interstate and intrastate sources in the same percentages as the reported end-user revenue. According to the 2021 USF Monitoring Report, approximately 55% of total end-user telecommunications and interconnected VoIP revenues are intrastate, and 45% are interstate. Although the contribution base for TRS includes non-interconnected VoIP enduser revenues, while the USF contribution base does not, the inclusion of this relatively small category is unlikely to have a major impact on the Commission’s estimate of the relative percentages of intrastate and interstate end-user revenues in the TRS contribution base. 9. As a result, the burden of supporting VRS and IP Relay has widely disparate impacts on TRS Fund contributors, based solely on the extent of interstate usage of their services. For TRS Fund Year 2022–23, for example, the administrator has recommended a contribution factor of 0.01125, meaning that a provider of interstate-only services must contribute approximately 1.11% of its total annual end-user revenues to support VRS and IP Relay. By contrast, the average TRS Fund contributor pays only 0.50% of its total annual end-user revenues to support VerDate Sep<11>2014 15:54 Nov 23, 2022 Jkt 259001 those services. And providers of intrastate-only services contribute nothing, despite the availability of VRS and IP Relay for intrastate as well as interstate calling. 10. Third, recovering VRS and IP Relay costs based on total end-user revenues reduces the likelihood of distortions in the pricing of interstate and intrastate voice services due to inaccurate market signals regarding their relative costs. As the Commission has recognized in various contexts, applying artificial regulatory distinctions or other disparate treatment to providers of similar services may create unintended market distortions, which can reduce the effectiveness of competition in ensuring efficient pricing of telecommunications services. 11. Fourth, the total amount of enduser revenues from which TRS Fund contributions can be drawn has been steadily decreasing over time, worsening the impact of the current funding arrangement on interstate service providers and users and increasing any resulting distortions in the pricing of intrastate and interstate service. Expanding contributions to support VRS and IP Relay to encompass intrastate as well as interstate revenues may strengthen the sustainability of these services. 12. Fifth, no state TRS program offers VRS or IP Relay, and there continue to be impediments to any state successfully administering and funding intrastate VRS and IP Relay. Accordingly, the Commission has no reason to believe that encouraging or mandating state program support of VRS and IP Relay would be a practical alternative. The Commission notes that its action today does not preclude any state from seeking certification to provide VRS or IP Relay, but given the lack of indication in the record that any state agency intends to do so, the Commission need not address at this time what changes in funding arrangements could be appropriate in the event of such a change in state policies. 13. Finally, no party has identified any differences between VRS and IP Relay, on the one hand, and IP CTS, on the other, that would support maintaining different funding arrangements for these services. 14. Legal Authority. The Commission finds that it has statutory authority to include the intrastate end-user revenues of telecommunications carriers and VoIP service providers in the calculation of TRS Fund contributions to support VRS and IP Relay. Section 225 of the Act expressly directs the Commission to ensure that both PO 00000 Frm 00052 Fmt 4700 Sfmt 4700 interstate and intrastate TRS are available and grants the Commission broad authority to establish regulations governing both interstate and intrastate TRS, including TRS cost recovery. Further, the Act affords the Commission, without limitation, ‘‘the same authority, power, and functions with respect to common carriers engaged in intrastate communication as the Commission has in administering and enforcing the provisions of this [Act] with respect to any common carrier engaged in interstate communication.’’ 47 U.S.C. 225(b)(2). In addition, section 715 of the Act requires that VoIP service providers ‘‘participate in and contribute to the Telecommunications Relay Services Fund . . . in a manner prescribed by the Commission . . . consistent with and comparable to the obligations of other contributors to such Fund.’’ 47 U.S.C. 616. The Commission also notes that Congress expressly carved out section 225 of the Act from the Act’s general reservation of state authority over intrastate communications, and that responsibility for administering TRS is shared with the states only to the extent that a state applies for and receives Commission approval to exercise such authority. The Commission concludes that, where a form of TRS is not offered in state TRS programs, the Commission may adopt reasonable measures to ensure equitably distributed contributions from all interstate and intrastate service providers subject to the Commission’s authority under sections 225 and 715 of the Act. 15. To collect TRS Fund contributions for VRS and IP Relay from intrastate and interstate end-user revenues, the administrator will follow the same procedure currently used for IP CTS, except that a single contribution factor will be used to determine the total level of support required for all three services. The interstate-only contribution factor will continue to be used, but only to support the interstate costs of services provided in state TRS programs (currently TTY-based TRS, STS, and non-internet-based CTS). The TRS Fund administrator will determine a revenue requirement for the three services, based on the applicable compensation formulas and projected demand for each service. Next, the TRS Fund administrator will compute a TRS Fund contribution factor for the three services, by dividing the revenue requirement by the total intrastate and interstate end-user revenues reported by TRS Fund contributors on Forms 499– A. 16. This approach is simple and feasible to administer, requires only E:\FR\FM\25NOR1.SGM 25NOR1 khammond on DSKJM1Z7X2PROD with RULES Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Rules and Regulations minor modification of our rules, and distributes the funding obligation among TRS Fund contributors in a reasonably equitable manner, with each contributor paying the same percentage of its total interstate and intrastate enduser revenues for support of internetbased TRS. Further, this approach does not require jurisdictional separation of TRS costs. As under the current funding mechanism for VRS and IP Relay, no cost separation is needed because all costs of the service will be supported by the TRS Fund, and the amounts paid by each Fund contributor are unaffected by the proportion of TRS costs that might be deemed interstate or intrastate. Accordingly, the Commission finds it unnecessary to refer this matter to a Federal-State Joint Board. 17. Economic Impact. The Commission adopts its tentative conclusion that the benefits of more efficient production and consumption exceed the costs of the proposed rule change. Broadening the TRS funding base will tend to reduce any current distortions in the relative prices of intrastate and interstate telecommunications and VoIP services, increasing economic efficiency by more accurately signaling relative costs to purchasers, which in turn will generate more efficient provider investment signals. 18. Further, this transfer results in no net increase in contributions for TRS Fund contributors as a whole. Expanding the TRS Fund contribution base for VRS and IP Relay to include intrastate revenues will reduce the TRS funding contributions paid by providers of interstate telecommunications and VoIP services and concomitantly increase the contributions paid by providers of intrastate services. To the extent this would occur, it is not a cost of the Commission’s rule change, but a transfer of the contribution burden from some providers and their customers to other providers and their customers. As an example, based on the administrator’s recommended budget for TRS Fund Year 2022–23, approximately 55% of TRS Fund expenditures on VRS and IP Relay in 2022–23, or $297 million—which under the existing rules would be collected from contributors’ interstate end-user revenues—will be collected from intrastate end-user revenues instead. This represents a $297 million transfer in the incidence of TRS Fund contributions from the interstate to the intrastate jurisdiction, but the total funding requirement is unaffected. In addition, the record does not indicate that any transitional costs of this transfer, which the Commission VerDate Sep<11>2014 15:54 Nov 23, 2022 Jkt 259001 mitigates by extending the implementation timeline, as discussed further below, could be so substantial as to outweigh the long-lasting efficiency benefits described above. 19. The Commission is cognizant that this change will have disparate impacts on carriers and service providers, as each provider’s contribution may be adjusted up or down depending on the percentage of their end-user revenues that is classified as intrastate. NTCA— The Rural Broadband Association suggests that such changes may have ‘‘inequitable’’ effects on some rural service providers and customers, pointing out that the analogous change in IP CTS funding adopted in 2019 led to significant increases in contribution obligations for rural providers. However, NTCA does not dispute that such changes are necessary to correct more pervasive, longstanding inequities in TRS funding, or that those service providers who now face increased costs—as a result of our action to equalize each contributor’s percentage contribution from total end-user revenues—have derived offsetting benefits over the preceding two decades, by paying a much lower than average share of their total end-user revenues to support TRS. While the Commission is mindful of the increased contribution cost that some entities must bear, it does not consider such increases inequitable. Therefore, the Commission denies NTCA’s request to adjust the contribution formula for rural service providers to limit their required contributions from intrastate end-user revenues. The Commission also notes that NTCA has not provided specific evidence that any provider would be unable to recover such increased costs. Further, given that the cost of TRS Fund support for VRS and IP Relay is approximately 25% lower than for IP CTS, the Commission expects the net effect on any provider’s total TRS Fund contribution to be less burdensome than the impact of the analogous rule change adopted in 2019 with regard to IP CTS funding. 20. The Commission does not address NTCA’s request for unspecified changes in access charge cost recovery rules, which is outside the scope of this proceeding and, in any event, does not provide a specific description of either the perceived problem or a proposed solution. After the Commission adopted a cap on all switched access rate elements in 2011, the Wireline Competition Bureau clarified, pursuant to its delegated authority, how incumbent local exchange carriers may recover increases in TRS Fund contribution costs and waived PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 72411 applicable rules to facilitate such cost recovery. To the extent that any service provider believes the access charge rules unreasonably hinder its recovery of TRS Fund contribution costs, the Commission notes that specific concerns may be brought to the Commission’s or Wireline Competition Bureau’s attention for further clarification, waiver, or other action consistent with the 2011 order (76 FR 65965, October 25, 2011) and the Commission’s rules. 21. Compliance Deadline. Telecommunications carriers and VoIP service providers shall be required to contribute a percentage of intrastate as well as interstate end-user revenues to fund VRS and IP Relay beginning July 1, 2023. Based on the record, the Commission finds good cause to establish a more extended compliance timeline than the seven months allowed in the IP CTS Contribution Order. The Commission is persuaded by commenters that a transition period of substantially less than one year could subject some TRS Fund contributors to undue economic stress. A longer period will allow additional time for carriers and providers facing changes in required contributions to adjust budgets, proposals, billing and compliance systems, and other planning processes. Setting a compliance date of July 1, 2023, will afford contributors close to one year from the effective date of this final rule to prepare for compliance. In addition, it is administratively efficient to tie the compliance date to the start of a new TRS Fund year. As an additional administrative benefit, a July 1 compliance date aligns with the filing date for incumbent local exchange carriers’ annual tariffs. Although IDT Corporation (IDT) argues that administrative efficiency should not be the Commission’s primary concern, the Commission’s decision takes account of other factors in addition to administrative efficiency. To avoid unnecessarily complicating the TRS Fund contribution process and the cost recovery adjustments that must be made by affected contributors, the Commission finds it appropriate to align the implementation of this change with the beginning of TRS Fund Year 2023– 24 on July 1, 2023. Final Regulatory Flexibility Analysis 22. As required by the Regulatory Flexibility Act of 1980, as amended (RFA), the Commission incorporated an Initial Regulatory Flexibility Analysis (IRFA) into the NPRM and sought written public comment on the proposals in that document, including comment on the IRFA. E:\FR\FM\25NOR1.SGM 25NOR1 khammond on DSKJM1Z7X2PROD with RULES 72412 Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Rules and Regulations 23. Need For, and Objectives of, the Rules. The Commission modifies the cost recovery rules for VRS and IP Relay to provide a fair and reasonable allocation of the funding burden for TRS. Specifically, providers of intrastate as well as interstate telecommunications and VoIP services must contribute to the TRS Fund for the support of VRS and IP Relay, based on a percentage of their total annual end-user revenues from intrastate, interstate, and international services. Requiring that contributions to support VRS and IP Relay include contributions from intrastate end-user revenues removes contribution asymmetry and ensures intrastate revenue is available to support intrastate VRS and IP Relay. This action addresses the interim cost recovery rules for VRS and IP Relay and better aligns the cost recovery rules with the terms of section 225 of the Act. See 47 U.S.C. 225. It also both reduces the inequitable burden on providers of interstate telecommunications and VoIP services and strengthens the funding base for these critical services. 24. Summary of Significant Issues Raised by Public Comments in Response to the IRFA. No comments were filed in response to the IRFA. 25. Response to Comments by the Chief Counsel for Advocacy of the Small Business Administration. The Chief Counsel for Advocacy of the Small Business Administration did not file any comments in response to the proposed rules in this proceeding. 26. Small Entities to which the Rules will Apply. The rules adopted in the Report and Order will affect the following types of small entities: wired telecommunications carriers; interexchange carriers; local resellers; toll resellers; other toll carriers; wireless telecommunications carriers (except satellite); satellite telecommunications service providers; and providers of all other telecommunications. 27. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements. The rules adopted in the Report and Order do not impose new or additional reporting, recordkeeping, or other compliance requirements on small entities. 28. Steps Taken To Minimize Significant Impact on Small Entities, and Significant Alternatives Considered. Expanding the TRS Fund contribution base for VRS and IP Relay to include intrastate end-user revenues will cause a corresponding reduction in the contributions required from interstate and international end-user revenues. As a result, while small entities with mostly intrastate revenue will be required to make increased payments to VerDate Sep<11>2014 15:54 Nov 23, 2022 Jkt 259001 the TRS Fund, other small entities with mostly interstate revenue will experience a reduction in TRS Fund contributions. This change will not increase the total contributions required. The additional costs incurred by some small entities are justified by the benefits of appropriately allocating the funding of the provision of VRS and IP Relay among all telecommunications carriers and VoIP providers. 29. The Commission considered whether to revise the contribution formula or the cost recovery mechanisms available to small rural carriers and providers as suggested by NTCA. The Commission determined that the record did not contain sufficient evidence to justify such changes. The Commission left open the ability for an adversely affected carrier or provider to petition the Commission for waiver with specific evidence showing that current rules inhibited said carrier or provider from fully recovering contribution costs. The Commission also modified the proposed compliance deadline in response to comments filed in the proceeding to provide affected entities close to one year to comply with the modified contribution obligations. This should allow small entities sufficient time to adjust budgets, proposals, billing and compliance systems, and other planning processes for meeting their funding obligations. 30. Federal Rules Which Duplicate, Overlap, or Conflict With, the Commission’s Proposals. None. Ordering Clauses 31. Pursuant to sections 1, 2, 225, and 715 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 225, 616, the Report and Order is adopted, and part 64 of title 47 is amended. Congressional Review Act 32. The Commission sent a copy of the Report and Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A). Final Paperwork Reduction Act of 1995 Analysis 33. The Report and Order does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002. PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 List of Subjects in 47 CFR Part 64 Communications, Communications common carriers, Individuals with disabilities, Telecommunications. Federal Communications Commission. Marlene Dortch, Secretary, Office of the Secretary. Final Regulations For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 64 as follows: PART 64—MISCELLANEOUS RULES RELATING TO COMMON CARRIERS 1. The authority citation for part 64 continues to read as follows: ■ Authority: 47 U.S.C. 151, 152, 154, 201, 202, 217, 218, 220, 222, 225, 226, 227, 227b, 228, 251(a), 251(e), 254(k), 255, 262, 276, 403(b)(2)(B), (c), 616, 620, 716, 1401–1473, unless otherwise noted; Pub. L. 115–141, Div. P, sec. 503, 132 Stat. 348, 1091. 2. Amend § 64.604 by revising paragraphs (c)(5)(ii) and (c)(5)(iii)(A) to read as follows: ■ § 64.604 Mandatory minimum standards. * * * * * (c) * * * (5) * * * (ii) Cost recovery. Costs caused by interstate TRS shall be recovered from all subscribers for every interstate service, utilizing a shared-funding cost recovery mechanism. Except as noted in this paragraph (c)(5)(ii), costs caused by intrastate TRS shall be recovered from the intrastate jurisdiction. In a state that has a certified program under § 64.606, the state agency providing TRS shall, through the state’s regulatory agency, permit a common carrier to recover costs incurred in providing TRS by a method consistent with the requirements of this section. Costs caused by the provision of interstate and intrastate IP CTS, and (beginning July 1, 2023) for VRS and IP Relay, if not provided through a certified state program under § 64.606, shall be recovered from all subscribers for every interstate and intrastate service, using a shared-funding cost recovery mechanism. (iii) * * * (A) Contributions. (1) Every carrier providing interstate or intrastate telecommunications services (including interconnected VoIP service providers pursuant to § 64.601(b)) and every provider of non-interconnected VoIP service shall contribute to the TRS Fund, as described in this paragraph (c)(5)(iii)(A): E:\FR\FM\25NOR1.SGM 25NOR1 Federal Register / Vol. 87, No. 226 / Friday, November 25, 2022 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES (i) For the support of TRS other than IP CTS, VRS, and IP Relay, on the basis of interstate end-user revenues; and (ii) For the support of IP CTS, and (beginning July 1, 2023) for VRS and IP Relay, on the basis of interstate and intrastate end-user revenues. VerDate Sep<11>2014 15:54 Nov 23, 2022 Jkt 259001 (2) Contributions shall be made by all carriers who provide interstate or intrastate services, including, but not limited to, cellular telephone and paging, mobile radio, operator services, personal communications service (PCS), access (including subscriber line charges), alternative access and special PO 00000 Frm 00055 Fmt 4700 Sfmt 9990 72413 access, packet-switched, WATS, 800, 900, message telephone service (MTS), private line, telex, telegraph, video, satellite, intraLATA, international, and resale services. * * * * * [FR Doc. 2022–25294 Filed 11–23–22; 8:45 am] BILLING CODE 6712–01–P E:\FR\FM\25NOR1.SGM 25NOR1

Agencies

[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Rules and Regulations]
[Pages 72409-72413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25294]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CG Docket Nos. 03-123, 10-51, 12-38; FCC 22-49; FR ID 114537]


TRS Fund Contributions

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission (Commission) modifies 
the cost recovery rules for funding two forms of internet-based 
telecommunications relay services (TRS)--video relay service (VRS) and 
internet Protocol Relay Service (IP Relay). The Commission expands the 
Interstate TRS Fund (TRS Fund or Fund) contribution base for support of 
those services to include intrastate as well as interstate end-user 
revenues of TRS Fund contributors. This action will ensure fair 
treatment of intrastate and interstate communications services and 
users in the funding of relay services.

DATES: 
    Effective date: This rule is effective December 27, 2022.
    Compliance date: July 1, 2023.

FOR FURTHER INFORMATION CONTACT: Michael Scott, Disability Rights 
Office, Consumer & Governmental Affairs Bureau, at (202) 418-1264 or 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Report and Order, 
document FCC 22-49, adopted June 26, 2022, released June 30, 2022, in 
CG Docket Nos. 03-123, 10-51, and 12-38. The Commission previously 
sought comment on these issues in Telecommunications Relay Services and 
Speech-to-Speech Services for Individuals with Hearing and Speech 
Disabilities, Structure and Practices of the Video Relay Service 
Program, Misuse of internet Protocol (IP) Relay Service, Notice of 
Proposed Rulemaking (NPRM), CG Docket Nos. 03-123, 10-51, and 12-38, 
FCC 20-161, published at 86 FR 14859, March 19, 2021. 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 (voice).

Synopsis

    1. Background. Section 225 of the Communications Act of 1934, as 
amended (the Act), requires the Commission to ensure that both 
``interstate and intrastate'' TRS are available ``to the extent 
possible and in the most efficient manner.'' 47 U.S.C. 225(b)(1). The 
Act directs the Commission to adopt, administer, and enforce 
regulations governing the provision of interstate and intrastate TRS, 
including rules on cost separation, which ``shall generally provide'' 
that interstate TRS costs are recovered from all subscribers for every 
interstate service and intrastate TRS costs are recovered from the 
intrastate jurisdiction. The Act also authorizes, but does not require, 
the establishment of state-administered TRS programs, subject to 
approval by the Commission. Currently, all 50 states, the District of 
Columbia, and several United States territories have TRS programs 
approved by the Commission. For ease of reference, The Commission 
refers to all state and territory TRS programs as state TRS programs. 
The Commission requires that state TRS programs include text-based TRS 
and speech-to-speech relay (STS).
    2. To provide for the recovery of interstate TRS costs, the 
Commission established the interstate TRS Fund in 1993. 
Telecommunications carriers, as well as providers of interconnected and 
non-interconnected voice-over-internet-Protocol (VoIP) service, are 
required to contribute to the TRS Fund, on a quarterly basis, a 
specified percentage of their end-user revenues for the prior year. 
Providers of international as well as interstate services are currently 
required to contribute to the TRS Fund. For ease of reference, the 
Commission uses the term ``interstate'' to mean ``interstate and 
international.''
    3. Although initially limited to supporting interstate TRS, the 
scope of the TRS Fund changed beginning in 2000, as the Commission 
authorized internet-based forms of TRS--VRS, IP Relay, and internet 
Protocol Captioned Telephone Service (IP CTS). VRS is a form of TRS 
that enables people with hearing or speech disabilities who use sign 
language to make telephone calls over broadband with a videophone. IP 
Relay is a form of TRS that permits an individual with a hearing or a 
speech disability to communicate in text using an internet Protocol-
enabled device via the internet. IP CTS is a form of TRS that permits 
an individual who can speak but who has difficulty hearing over the 
telephone to use a telephone and an internet Protocol-enabled device 
via the internet to simultaneously listen to the other party and read 
captions of what the other party is saying.
    4. When the Commission first authorized use of internet-based forms 
of TRS, it decided, as an interim measure to speed the development of 
these services, that all of the costs of providing internet-based TRS 
should be paid by contributors to the TRS Fund, based only on their 
interstate end-user revenues. This approach was deemed preferable to 
burdening state relay programs with the responsibility to fund and 
supervise, on a state-by-state basis, the provision of intrastate relay 
services via these nascent technologies. In those proceedings, the 
Commission did not consider the alternative, adopted here, of expanding 
the TRS Fund contribution base to include intrastate end-user revenues. 
However, the Commission stated an intention to revisit these interim 
funding arrangements in the future.
    5. In 2019, the Commission revisited the funding arrangement for 
one form of internet-based TRS, IP CTS. Recognizing that the 
``interim'' funding mechanism for IP CTS disproportionately burdens 
providers and users of interstate services, the Commission concluded it 
was no longer justifiable. Therefore, the Commission amended its rules 
to expand the TRS Fund contribution base for that service to include 
intrastate as well as interstate end-user revenues. TRS Fund 
Contributions, Document FCC 19-118, published at 85 FR 462, January 6, 
2020 (IP CTS Contributions Order).
    6. Discussion. The Commission amends its rules to provide that TRS 
Fund contributions for the support of VRS and IP Relay shall be 
calculated based on the total interstate and intrastate end-user 
revenues of each telecommunications carrier and VoIP service provider. 
The Commission thereby replaces ``interim'' funding measures adopted 
nearly two decades ago. The record supports the Commission's conclusion 
that the rules it adopts will provide a fair allocation of TRS Fund 
contribution obligations among those entities subject to its TRS 
funding authority. The total contributions needed to support the TRS 
Fund will not be affected, but the Commission anticipates that 
(assuming there is no unrelated change in the TRS Fund budget for 
supporting these

[[Page 72410]]

services) TRS Fund contributions paid as a percentage of interstate 
end-user revenues for the support of VRS and IP Relay will decline by 
approximately 55%.
    7. The Commission adopts this rule change for the reasons set forth 
in the NPRM. First, the current funding arrangements for VRS and IP 
Relay were authorized some 20 years ago as interim measures to speed 
the development of these services, and that purpose has been achieved. 
VRS is the second largest TRS program, and IP Relay's annual minutes 
exceed the annual TRS Fund-supported minutes of all state TRS programs 
combined.
    8. Second, the Commission's action corrects the inherent inequity 
of the current funding arrangements. VRS and IP Relay, which 
cumulatively require close to $540 million in TRS Fund backing, are 
supported entirely from interstate end-user telecommunications and VoIP 
revenues, with 0% contribution from intrastate revenues. By contrast, 
approximately 76% of the costs of relay services provided through state 
TRS programs are funded from intrastate sources, and, since the 
Commission's 2019 IP CTS funding reforms were implemented, 
approximately 55% of IP CTS costs are funded from intrastate end-user 
revenues. The Commission notes that contributions to support IP CTS are 
divided between interstate and intrastate sources in the same 
percentages as the reported end-user revenue. According to the 2021 USF 
Monitoring Report, approximately 55% of total end-user 
telecommunications and interconnected VoIP revenues are intrastate, and 
45% are interstate. Although the contribution base for TRS includes 
non-interconnected VoIP end-user revenues, while the USF contribution 
base does not, the inclusion of this relatively small category is 
unlikely to have a major impact on the Commission's estimate of the 
relative percentages of intrastate and interstate end-user revenues in 
the TRS contribution base.
    9. As a result, the burden of supporting VRS and IP Relay has 
widely disparate impacts on TRS Fund contributors, based solely on the 
extent of interstate usage of their services. For TRS Fund Year 2022-
23, for example, the administrator has recommended a contribution 
factor of 0.01125, meaning that a provider of interstate-only services 
must contribute approximately 1.11% of its total annual end-user 
revenues to support VRS and IP Relay. By contrast, the average TRS Fund 
contributor pays only 0.50% of its total annual end-user revenues to 
support those services. And providers of intrastate-only services 
contribute nothing, despite the availability of VRS and IP Relay for 
intrastate as well as interstate calling.
    10. Third, recovering VRS and IP Relay costs based on total end-
user revenues reduces the likelihood of distortions in the pricing of 
interstate and intrastate voice services due to inaccurate market 
signals regarding their relative costs. As the Commission has 
recognized in various contexts, applying artificial regulatory 
distinctions or other disparate treatment to providers of similar 
services may create unintended market distortions, which can reduce the 
effectiveness of competition in ensuring efficient pricing of 
telecommunications services.
    11. Fourth, the total amount of end-user revenues from which TRS 
Fund contributions can be drawn has been steadily decreasing over time, 
worsening the impact of the current funding arrangement on interstate 
service providers and users and increasing any resulting distortions in 
the pricing of intrastate and interstate service. Expanding 
contributions to support VRS and IP Relay to encompass intrastate as 
well as interstate revenues may strengthen the sustainability of these 
services.
    12. Fifth, no state TRS program offers VRS or IP Relay, and there 
continue to be impediments to any state successfully administering and 
funding intrastate VRS and IP Relay. Accordingly, the Commission has no 
reason to believe that encouraging or mandating state program support 
of VRS and IP Relay would be a practical alternative. The Commission 
notes that its action today does not preclude any state from seeking 
certification to provide VRS or IP Relay, but given the lack of 
indication in the record that any state agency intends to do so, the 
Commission need not address at this time what changes in funding 
arrangements could be appropriate in the event of such a change in 
state policies.
    13. Finally, no party has identified any differences between VRS 
and IP Relay, on the one hand, and IP CTS, on the other, that would 
support maintaining different funding arrangements for these services.
    14. Legal Authority. The Commission finds that it has statutory 
authority to include the intrastate end-user revenues of 
telecommunications carriers and VoIP service providers in the 
calculation of TRS Fund contributions to support VRS and IP Relay. 
Section 225 of the Act expressly directs the Commission to ensure that 
both interstate and intrastate TRS are available and grants the 
Commission broad authority to establish regulations governing both 
interstate and intrastate TRS, including TRS cost recovery. Further, 
the Act affords the Commission, without limitation, ``the same 
authority, power, and functions with respect to common carriers engaged 
in intrastate communication as the Commission has in administering and 
enforcing the provisions of this [Act] with respect to any common 
carrier engaged in interstate communication.'' 47 U.S.C. 225(b)(2). In 
addition, section 715 of the Act requires that VoIP service providers 
``participate in and contribute to the Telecommunications Relay 
Services Fund . . . in a manner prescribed by the Commission . . . 
consistent with and comparable to the obligations of other contributors 
to such Fund.'' 47 U.S.C. 616. The Commission also notes that Congress 
expressly carved out section 225 of the Act from the Act's general 
reservation of state authority over intrastate communications, and that 
responsibility for administering TRS is shared with the states only to 
the extent that a state applies for and receives Commission approval to 
exercise such authority. The Commission concludes that, where a form of 
TRS is not offered in state TRS programs, the Commission may adopt 
reasonable measures to ensure equitably distributed contributions from 
all interstate and intrastate service providers subject to the 
Commission's authority under sections 225 and 715 of the Act.
    15. To collect TRS Fund contributions for VRS and IP Relay from 
intrastate and interstate end-user revenues, the administrator will 
follow the same procedure currently used for IP CTS, except that a 
single contribution factor will be used to determine the total level of 
support required for all three services. The interstate-only 
contribution factor will continue to be used, but only to support the 
interstate costs of services provided in state TRS programs (currently 
TTY-based TRS, STS, and non-internet-based CTS). The TRS Fund 
administrator will determine a revenue requirement for the three 
services, based on the applicable compensation formulas and projected 
demand for each service. Next, the TRS Fund administrator will compute 
a TRS Fund contribution factor for the three services, by dividing the 
revenue requirement by the total intrastate and interstate end-user 
revenues reported by TRS Fund contributors on Forms 499-A.
    16. This approach is simple and feasible to administer, requires 
only

[[Page 72411]]

minor modification of our rules, and distributes the funding obligation 
among TRS Fund contributors in a reasonably equitable manner, with each 
contributor paying the same percentage of its total interstate and 
intrastate end-user revenues for support of internet-based TRS. 
Further, this approach does not require jurisdictional separation of 
TRS costs. As under the current funding mechanism for VRS and IP Relay, 
no cost separation is needed because all costs of the service will be 
supported by the TRS Fund, and the amounts paid by each Fund 
contributor are unaffected by the proportion of TRS costs that might be 
deemed interstate or intrastate. Accordingly, the Commission finds it 
unnecessary to refer this matter to a Federal-State Joint Board.
    17. Economic Impact. The Commission adopts its tentative conclusion 
that the benefits of more efficient production and consumption exceed 
the costs of the proposed rule change. Broadening the TRS funding base 
will tend to reduce any current distortions in the relative prices of 
intrastate and interstate telecommunications and VoIP services, 
increasing economic efficiency by more accurately signaling relative 
costs to purchasers, which in turn will generate more efficient 
provider investment signals.
    18. Further, this transfer results in no net increase in 
contributions for TRS Fund contributors as a whole. Expanding the TRS 
Fund contribution base for VRS and IP Relay to include intrastate 
revenues will reduce the TRS funding contributions paid by providers of 
interstate telecommunications and VoIP services and concomitantly 
increase the contributions paid by providers of intrastate services. To 
the extent this would occur, it is not a cost of the Commission's rule 
change, but a transfer of the contribution burden from some providers 
and their customers to other providers and their customers. As an 
example, based on the administrator's recommended budget for TRS Fund 
Year 2022-23, approximately 55% of TRS Fund expenditures on VRS and IP 
Relay in 2022-23, or $297 million--which under the existing rules would 
be collected from contributors' interstate end-user revenues--will be 
collected from intrastate end-user revenues instead. This represents a 
$297 million transfer in the incidence of TRS Fund contributions from 
the interstate to the intrastate jurisdiction, but the total funding 
requirement is unaffected. In addition, the record does not indicate 
that any transitional costs of this transfer, which the Commission 
mitigates by extending the implementation timeline, as discussed 
further below, could be so substantial as to outweigh the long-lasting 
efficiency benefits described above.
    19. The Commission is cognizant that this change will have 
disparate impacts on carriers and service providers, as each provider's 
contribution may be adjusted up or down depending on the percentage of 
their end-user revenues that is classified as intrastate. NTCA--The 
Rural Broadband Association suggests that such changes may have 
``inequitable'' effects on some rural service providers and customers, 
pointing out that the analogous change in IP CTS funding adopted in 
2019 led to significant increases in contribution obligations for rural 
providers. However, NTCA does not dispute that such changes are 
necessary to correct more pervasive, longstanding inequities in TRS 
funding, or that those service providers who now face increased costs--
as a result of our action to equalize each contributor's percentage 
contribution from total end-user revenues--have derived offsetting 
benefits over the preceding two decades, by paying a much lower than 
average share of their total end-user revenues to support TRS. While 
the Commission is mindful of the increased contribution cost that some 
entities must bear, it does not consider such increases inequitable. 
Therefore, the Commission denies NTCA's request to adjust the 
contribution formula for rural service providers to limit their 
required contributions from intrastate end-user revenues. The 
Commission also notes that NTCA has not provided specific evidence that 
any provider would be unable to recover such increased costs. Further, 
given that the cost of TRS Fund support for VRS and IP Relay is 
approximately 25% lower than for IP CTS, the Commission expects the net 
effect on any provider's total TRS Fund contribution to be less 
burdensome than the impact of the analogous rule change adopted in 2019 
with regard to IP CTS funding.
    20. The Commission does not address NTCA's request for unspecified 
changes in access charge cost recovery rules, which is outside the 
scope of this proceeding and, in any event, does not provide a specific 
description of either the perceived problem or a proposed solution. 
After the Commission adopted a cap on all switched access rate elements 
in 2011, the Wireline Competition Bureau clarified, pursuant to its 
delegated authority, how incumbent local exchange carriers may recover 
increases in TRS Fund contribution costs and waived applicable rules to 
facilitate such cost recovery. To the extent that any service provider 
believes the access charge rules unreasonably hinder its recovery of 
TRS Fund contribution costs, the Commission notes that specific 
concerns may be brought to the Commission's or Wireline Competition 
Bureau's attention for further clarification, waiver, or other action 
consistent with the 2011 order (76 FR 65965, October 25, 2011) and the 
Commission's rules.
    21. Compliance Deadline. Telecommunications carriers and VoIP 
service providers shall be required to contribute a percentage of 
intrastate as well as interstate end-user revenues to fund VRS and IP 
Relay beginning July 1, 2023. Based on the record, the Commission finds 
good cause to establish a more extended compliance timeline than the 
seven months allowed in the IP CTS Contribution Order. The Commission 
is persuaded by commenters that a transition period of substantially 
less than one year could subject some TRS Fund contributors to undue 
economic stress. A longer period will allow additional time for 
carriers and providers facing changes in required contributions to 
adjust budgets, proposals, billing and compliance systems, and other 
planning processes. Setting a compliance date of July 1, 2023, will 
afford contributors close to one year from the effective date of this 
final rule to prepare for compliance. In addition, it is 
administratively efficient to tie the compliance date to the start of a 
new TRS Fund year. As an additional administrative benefit, a July 1 
compliance date aligns with the filing date for incumbent local 
exchange carriers' annual tariffs. Although IDT Corporation (IDT) 
argues that administrative efficiency should not be the Commission's 
primary concern, the Commission's decision takes account of other 
factors in addition to administrative efficiency. To avoid 
unnecessarily complicating the TRS Fund contribution process and the 
cost recovery adjustments that must be made by affected contributors, 
the Commission finds it appropriate to align the implementation of this 
change with the beginning of TRS Fund Year 2023-24 on July 1, 2023.

Final Regulatory Flexibility Analysis

    22. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Commission incorporated an Initial Regulatory 
Flexibility Analysis (IRFA) into the NPRM and sought written public 
comment on the proposals in that document, including comment on the 
IRFA.

[[Page 72412]]

    23. Need For, and Objectives of, the Rules. The Commission modifies 
the cost recovery rules for VRS and IP Relay to provide a fair and 
reasonable allocation of the funding burden for TRS. Specifically, 
providers of intrastate as well as interstate telecommunications and 
VoIP services must contribute to the TRS Fund for the support of VRS 
and IP Relay, based on a percentage of their total annual end-user 
revenues from intrastate, interstate, and international services. 
Requiring that contributions to support VRS and IP Relay include 
contributions from intrastate end-user revenues removes contribution 
asymmetry and ensures intrastate revenue is available to support 
intrastate VRS and IP Relay. This action addresses the interim cost 
recovery rules for VRS and IP Relay and better aligns the cost recovery 
rules with the terms of section 225 of the Act. See 47 U.S.C. 225. It 
also both reduces the inequitable burden on providers of interstate 
telecommunications and VoIP services and strengthens the funding base 
for these critical services.
    24. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. No comments were filed in response to the IRFA.
    25. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. The Chief Counsel for Advocacy of the 
Small Business Administration did not file any comments in response to 
the proposed rules in this proceeding.
    26. Small Entities to which the Rules will Apply. The rules adopted 
in the Report and Order will affect the following types of small 
entities: wired telecommunications carriers; interexchange carriers; 
local resellers; toll resellers; other toll carriers; wireless 
telecommunications carriers (except satellite); satellite 
telecommunications service providers; and providers of all other 
telecommunications.
    27. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. The rules adopted in the Report and Order do 
not impose new or additional reporting, recordkeeping, or other 
compliance requirements on small entities.
    28. Steps Taken To Minimize Significant Impact on Small Entities, 
and Significant Alternatives Considered. Expanding the TRS Fund 
contribution base for VRS and IP Relay to include intrastate end-user 
revenues will cause a corresponding reduction in the contributions 
required from interstate and international end-user revenues. As a 
result, while small entities with mostly intrastate revenue will be 
required to make increased payments to the TRS Fund, other small 
entities with mostly interstate revenue will experience a reduction in 
TRS Fund contributions. This change will not increase the total 
contributions required. The additional costs incurred by some small 
entities are justified by the benefits of appropriately allocating the 
funding of the provision of VRS and IP Relay among all 
telecommunications carriers and VoIP providers.
    29. The Commission considered whether to revise the contribution 
formula or the cost recovery mechanisms available to small rural 
carriers and providers as suggested by NTCA. The Commission determined 
that the record did not contain sufficient evidence to justify such 
changes. The Commission left open the ability for an adversely affected 
carrier or provider to petition the Commission for waiver with specific 
evidence showing that current rules inhibited said carrier or provider 
from fully recovering contribution costs. The Commission also modified 
the proposed compliance deadline in response to comments filed in the 
proceeding to provide affected entities close to one year to comply 
with the modified contribution obligations. This should allow small 
entities sufficient time to adjust budgets, proposals, billing and 
compliance systems, and other planning processes for meeting their 
funding obligations.
    30. Federal Rules Which Duplicate, Overlap, or Conflict With, the 
Commission's Proposals. None.

Ordering Clauses

    31. Pursuant to sections 1, 2, 225, and 715 of the Communications 
Act of 1934, as amended, 47 U.S.C. 151, 152, 225, 616, the Report and 
Order is adopted, and part 64 of title 47 is amended.

Congressional Review Act

    32. The Commission sent a copy of the Report and Order to Congress 
and the Government Accountability Office pursuant to the Congressional 
Review Act, 5 U.S.C. 801(a)(1)(A).

Final Paperwork Reduction Act of 1995 Analysis

    33. The Report and Order does not contain new or modified 
information collection requirements subject to the Paperwork Reduction 
Act of 1995. In addition, therefore, it does not contain any new or 
modified information collection burden for small business concerns with 
fewer than 25 employees, pursuant to the Small Business Paperwork 
Relief Act of 2002.

List of Subjects in 47 CFR Part 64

    Communications, Communications common carriers, Individuals with 
disabilities, Telecommunications.

Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.

Final Regulations

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 64 as follows:

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

0
1. The authority citation for part 64 continues to read as follows:

    Authority:  47 U.S.C. 151, 152, 154, 201, 202, 217, 218, 220, 
222, 225, 226, 227, 227b, 228, 251(a), 251(e), 254(k), 255, 262, 
276, 403(b)(2)(B), (c), 616, 620, 716, 1401-1473, unless otherwise 
noted; Pub. L. 115-141, Div. P, sec. 503, 132 Stat. 348, 1091.


0
2. Amend Sec.  64.604 by revising paragraphs (c)(5)(ii) and 
(c)(5)(iii)(A) to read as follows:


Sec.  64.604  Mandatory minimum standards.

* * * * *
    (c) * * *
    (5) * * *
    (ii) Cost recovery. Costs caused by interstate TRS shall be 
recovered from all subscribers for every interstate service, utilizing 
a shared-funding cost recovery mechanism. Except as noted in this 
paragraph (c)(5)(ii), costs caused by intrastate TRS shall be recovered 
from the intrastate jurisdiction. In a state that has a certified 
program under Sec.  64.606, the state agency providing TRS shall, 
through the state's regulatory agency, permit a common carrier to 
recover costs incurred in providing TRS by a method consistent with the 
requirements of this section. Costs caused by the provision of 
interstate and intrastate IP CTS, and (beginning July 1, 2023) for VRS 
and IP Relay, if not provided through a certified state program under 
Sec.  64.606, shall be recovered from all subscribers for every 
interstate and intrastate service, using a shared-funding cost recovery 
mechanism.
    (iii) * * *
    (A) Contributions. (1) Every carrier providing interstate or 
intrastate telecommunications services (including interconnected VoIP 
service providers pursuant to Sec.  64.601(b)) and every provider of 
non-interconnected VoIP service shall contribute to the TRS Fund, as 
described in this paragraph (c)(5)(iii)(A):

[[Page 72413]]

    (i) For the support of TRS other than IP CTS, VRS, and IP Relay, on 
the basis of interstate end-user revenues; and
    (ii) For the support of IP CTS, and (beginning July 1, 2023) for 
VRS and IP Relay, on the basis of interstate and intrastate end-user 
revenues.
    (2) Contributions shall be made by all carriers who provide 
interstate or intrastate services, including, but not limited to, 
cellular telephone and paging, mobile radio, operator services, 
personal communications service (PCS), 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.
* * * * *
[FR Doc. 2022-25294 Filed 11-23-22; 8:45 am]
BILLING CODE 6712-01-P


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