Telecommunications Relay Service Fund Contribution Factor Decreases

We have a classic man bites dog” story for you today: The FCC announced that its contribution factor for the fund that supports the Telecommunications Relay Service -- a telecom assistance service for persons with hearing or speech disabilities -- is decreasing by nearly 50%. Whereas last year’s TRS contribution factor was 1.1% of telecom revenues, the 2010-11 factor is only 0.585% of telecom revenues.

However, this rate was lowered in part by a one-time application of a refund from the 2009-10 fund. Carriers can expect a slight increase in July 2011, after the one-time refund is exhausted.

The new rate is effective as of July 1. Carriers subject to the TRS fund (basically, any entity that files a FCC Form 499) should see the lower rate on their next invoice from the TRS administrator.

Kelley Drye’s client advisory on the TRS reduction is available here.

The FCC order setting the TRS contribution factor is available here.