Sorenson Video Relay Service says new FCC-required rates will drive it into bankruptcy

From Sorenson Video Relay Service:

The FCC's Bureau of Consumer and Governmental Affairs recently issued a statement stating that the FCC supports VRS and that VRS is not threatened by the FCC's Public Notice proposing rates for VRS. This statement from the FCC has also appeared on numerous websites.

Sorenson Communications is not at all surprised to see that the FCC supports the mandate in the Americans with Disabilities Act (ADA) to provide functionally equivalent telecommunications for the deaf. But the FCC fails to mention that in addition to "functional equivalent telecommunications for the deaf," the ADA also requires nationwide access and improvements in technology and efficiency. The FCC is completely incorrect to say that VRS as we know it today is not threatened by its April 30 VRS rate proposal.

Sorenson provides the vast majority of VRS to the deaf community. Sorenson has provided VRS access to more deaf individuals than any other provider and continues to be the frontrunner in providing access and support to deaf individuals who have never before used VRS service. Sorenson developed the first deaf-centric videophone offering the most functionally-equivalent communication service available. And, Sorenson has done all of this efficiently, as it continues to develop next-generation solutions that the deaf community has been greatly anticipating.

The rates that the FCC is proposing will drive Sorenson, the leading provider of VRS, into bankruptcy. The FCC proposes to compensate Sorenson $3.89 per minute, while paying all other providers more than $5.77 per minute. Sorenson's real costs are nearly $6 per minute. As Sorenson has repeatedly told the FCC, the FCC ignores substantial, real-world costs that are essential to providing Sorenson VRS. The FCC is incorrect in its assessment of what would happen if it adopts its proposal. Sorenson understands completely the impact the proposed rate would have on its business. It would be disastrous for consumers. If Sorenson is unable to sustain its business at the FCC's proposed rate, how can the FCC suggest that any other provider would be able to service Sorenson's users at such a low rate?

Sorenson continues to strongly urge everyone who relies on VRS to communicate to the FCC the facts: The FCC's proposed rate will force Sorenson into bankruptcy and will end VRS as we know it today. The FCC Chairman and Commissioners must be made to understand that any rate proposal that resembles the April 30 Public Notice, will be a death blow to VRS and to the ADA's mandate to provide functionally equivalent telecommunications service, national access, technology improvements and efficiency for deaf telecommunications.

Michael D. Maddix
Director of Government and Regulatory Affairs
Sorenson Communications, Inc.