The FCC should decline to set Video Relay...
The FCC should decline to set Video Relay Service (VRS) rates that would subsidize specific competitors, Sorensen told the commission in a letter Monday (http://bit.ly/11K7Tr0). Purple and two other VRS providers have asked the commission to continue having tiered VRS…
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rates. “Tiers to support subscale competitors are wasteful, incenting providers to stay small rather than to grow,” Sorensen said. The other companies’ proposals “point out the irrationality of determining compensation on a provider-specific rate-of-return basis -- a form of regulation that the Commission has eschewed in nearly every other setting,” Sorensen said. Sorensen called rate tiers “wasteful, illogical” and “the height of intellectual bankruptcy” when used in conjunction with rate-of-return regulation.