ITTA Petition Seeks to Clarify FCC's View of TRS and Cost Recovery Surcharges

May 29, 2018 | by CCMI

The Federal Communications Commission ("FCC" or "Commission") released recently released a Public Notice seeking comment on a Petition for Declaratory Ruling filed by ITTA – The Voice of America’s Broadband Providers ("ITTA").  ITTA is asking the FCC (or its Consumer and Governmental Affairs Bureau) to rule “that it is and always has been permissible for a carrier recovering Telecommunications Relay Services ("TRS") Fund contributions via an end user cost recovery fee line item (or the like) on customers’ bills to include TRS, among other references, in the line item description.”  Or stated another way -- in plain English -- ITTA is asking the FCC whether it is lawful for a service provider to pass through its TRS contribution costs as a line item surcharge imposed on consumers, either as a stand-alone surcharge or "bundled" into a cost recovery fee (and sufficiently disclosed in customer-facing material, such as contracts, invoices, or website postings).    Admittedly, the Commission’s "policies" governing TRS pass-throughs are less than clear and have stymied service providers and their advisors for years.  Language exists in different rulings/orders and the FCC's own website that is contradictory -- seemingly prohibiting and permitting the practice in separate breaths.  The confusing and contradictory "precedent" is largely to blame for the lack of consistency in service provider practices when it comes to recoupment of TRS costs.  The ITTA petition is a long-overdue mechanism that promises to bring clarity that will resolve the dilemma by providing clearer guidance to the industry regarding what is and is not permissible.   Comments in response to ITTA’s petition are due on or before Monday, June 18, 2018 and reply comments are due on or before Tuesday, July 3, 2018.  Contact Jonathan Marashlian at jsm@commlawgroup.com if you are interested in participating in the proceeding and informing the FCC of your company's position on the issue.

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