FCC Adopts Rules Requiring Certain VoIP Providers to Contribute to TRS Fund

FCC Adopts Rules Requiring Certain VoIP Providers to Contribute to TRS Fund

On October 7, 2011, the FCC released new rules requiring interconnected and
non-interconnected voice over Internet protocol (VoIP) service providers to
participate in and contribute to the Telecommunications Relay Services Fund
(TRS Fund).

The NAD commends the FCC for these new rules, which are a step in the right
direction. The NAD encourages the FCC to monitor the solvency of the TRS
Fund as telephone services via Internet connections evolve. The NAD led the
way in drafting and submitting comments on behalf of several consumer groups
(Press Release; Consumer Groups’ Comments).

See previous press release – http://bit.ly/tknkG6

Consumer Group’s Comment link – http://fjallfoss.fcc.gov/ecfs/document/view?id=7021345980

Traditional telephone services are already required by law to pay into the
TRS Fund which supports relay services for deaf and hard of hearing people
across the country. However, in the last few years we have seen the
telephone system evolve to include more and more phone calls made over the
Internet via VoIP. In 2007, the FCC issued rules that required
interconnected VoIP providers to contribute to the TRS Fund. This rule
became law with the 21st Century Communications and Video Accessibility Act
of 2010 (CVAA), which also expanded the requirement to certain
non-interconnected VoIP providers.

Interconnected VoIP service allows people to make and receive calls to and
from traditional phone numbers using an Internet connection, possibly a
high-speed Internet connection (for example, Vonage). Non-interconnected
VoIP service generally allows people to only make or receive calls from or
to the public switched telephone network (such as making a call to
somebody’s cell phone through Skype).

Interconnected VoIP service providers must contribute to the TRS Fund.
Non-interconnected VoIP service providers must also contribute to the TRS
Fund if they earn interstate revenues from people who have purchased and use
their services.

In our comments, we explained that one day people may be able to make
telephone calls for free, such as in exchange for viewing advertisements on
their phones or computers (similar to basic television or online news
websites), and we need to make sure that such free non-interconnected VoIP
services contribute to the TRS Fund. The FCC did not go as far as we wanted
with this order and require contributions from all non-interconnected VoIP
service providers; however, the FCC has reserved the right to re-visit this
issue such as if the revenue model for telecommunications evolves.

We appreciate the hard work of the FCC in implementing this requirement
under the CVAA and we urge the FCC to continue monitoring the evolution of
telecommunications and safeguard the solvency of the TRS Fund.

Click here to read the October 7, 2011 Report and Order. (PDF format)
http//transition.fcc.gov/Daily_Releases/Daily_Business/2011/db1007/FCC-11-150A1.pdf

Source:
http://www.nad.org/news/2011/10/fcc-adopts-rules-requiring-certain-voip-providers-contribute-trs-fund

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