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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
May 28, 2013 Mark Wigfield, 202-418-0253
E-mail: [1]mark.wigfield@fcc.gov
SORENSON TO PAY $15.75 MILLION TO SETTLE FCC INVESTIGATION INTO IMPROPER
BILLING OF TRS FUND
Latest in a Series of TRS Enforcement Actions Over The Past Three Years
Totaling More Than $55 Million in Reimbursements and Voluntary Payments to
U.S. Treasury
Washington, D.C. - For the second time this month, the FCC has reached a
multi-million dollar settlement to resolve a probe into possible improper
use of a federal fund that supports telecommunications services for people
with disabilities. Sorenson Communications, Inc., an Internet-based
Telecommunications Relay Service (TRS) provider, has agreed to pay $15.75
million to settle an investigation by the FCC's Enforcement Bureau into
whether the company billed the TRS Fund for calls made by unregistered,
unverified, or ineligible individuals, and for calls that were made by or
on behalf of the provider itself. FCC registration and verification
requirements are designed to protect the integrity and of the TRS Fund,
which compensates TRS providers for reasonable costs of providing
interstate TRS calls involving persons with disabilities, and is funded
from a fee paid for by subscribers of interstate telecommunications
services.
The settlement follows closely on another announced on May 7 in which AT&T
Inc. agreed to pay $18.25 million to settle an investigation into whether
it improperly billed the TRS fund. The FCC reached its largest-ever
settlement of a TRS investigation in 2010, resulting in the payment of
nearly $20 million by Purple Communications Inc. to settle a probe into
whether the company overbilled the fund.
"The TRS Fund exists to ensure that modern communications technologies are
available to millions of Americans with disabilities," Acting FCC
Chairwoman Mignon Clyburn said. "This critical service helps to connect
them with job opportunities, family, friends and -- if needed -- emergency
personnel. With today's settlement, the FCC has recouped more than $55
million in reimbursements to the TRS Fund and voluntary contributions to
the U.S Treasury."
Enforcement Bureau Chief Michele Ellison added, "The Bureau must and will
continue to ensure that providers only receive their fair share of TRS
funds. Consumers with disabilities deserve no less."
As part of the settlement, Sorenson must implement a robust compliance
plan, requiring detailed operating procedures, comprehensive training of
its employees, and immediate reporting of possible violations. Of the
$15.75 million, just over $4.2 million will be reimbursed to the TRS Fund,
and the remaining approximately $11.5 million will be paid to the U.S.
Treasury as a voluntary contribution.
TRS enables an individual who is deaf, hard of hearing, deaf-blind, or who
has a speech disability, to engage in telephone communications with one or
more individuals. With traditional TRS, a user "calls" a provider through
a text-based device (for example, a text telephone or TTY) and is
connected to a communications assistant (CA) who, in turn, makes a voice
telephone call to the person the TRS user wishes to call. The CA then
speaks to the called party what the relay user has typed, and types back
to the calling party what the called party says. The service provided by
Sorenson is Internet-based, in which calls between the relay provider and
the person with a hearing or speech disability are made via the Internet
and an IP-enabled device, rather than the traditional telephone network.
Congress created the TRS program in Title IV of the Americans with
Disabilities Act of 1990, codified at Section 225 of the Communications
Act of 1934, as amended. Under that act, the Commission must ensure that
the provision of TRS is functionally equivalent to voice telephone
service. The Commission's TRS regulations set forth mandatory minimum
standards that TRS providers must follow to meet this functional
equivalency mandate.
The Order and Consent Decree are available at
[2]http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-13-1068A1.pdf.
-FCC-
News about the Federal Communications Commission can also be found
on the Commission's web site [3]www.fcc.gov.
NEWS
Federal Communications Commission
445 12^th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the
full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322
References
Visible links
1. mailto:mark.wigfield@fcc.gov
2. http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-13-1068A1.pdf
3. http://www.fcc.gov/