2016-2017

TRS Administration Presentation Annapolis MD

September 15, 2016

Agenda

1. TRS Fund Finances

2. Demand trends

3. What are we working on?

4. Implementation of the VRS URD

5. Establishment of a Data warehouse

6. Some thoughts on next generation

pricing

7. The TRS Fund Advisory Council

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TRS Fund Finances

2016-2017 = $1,280,648,798

Less 6/30 bal. of $142,588,264

Less Interest of $150,000

Requirements $1,137,910,534

Where does it go?

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Where does it go?

Traditional, STS & CTS $17.3 M

IP Relay $7.7 M

IP CTS $518.5 M

VRS $525.5 M

NDBEDP $10.0 M

2 avg. month reserve $178.2 M

Subtotal: $1,257.2 M

[ 98% of budgeted expense of $1,280.6 M]

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What are the other 2%?

TRS Admin $1.350 M

Auditing $1.335 M

National Outreach $2.000 M

VRS URD $1.018 M

VRS Platform* $0.0 M

VRS Platform Maint. $0.385 M

Market Research* $5.4 M

Options* $11.4 M

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Demand Trends IP Relay

6

Demand Trends VRS

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Demand Trends IP CTS

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TRS Projects

Implement the VRS URD*

NDBEDP enhancements

Updating the AR procedures

Building a warehouse of CDR data

Audit program:

◦ Financial audits (providers 2015 costs)

◦ Certification audits (coord w/ CGB)

◦ URD related audits (of supporting Doc)

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TRS Projects

Updating the distribution procedures

Improvements to D/R & data security

Independent financial audits (Kearney

& Maher Duessel)

Internal Risk assessments

IPERIA Audit

Responding to anticipated RFP

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User Registration Database(s)

In 2013 the FCC committed to contract for a

central TRS user registration database

(TRS-URD).

a centralized eligibility verification

requirement to ensure accurate registration

and verification of users,

to achieve more effective fraud and abuse

prevention, and

allow the Commission to know, the number

of individuals that actually use VRS;

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User Registration Database(s)

VRS providers are required to populate the database with: ◦ Full name

◦ Full residential address

◦ Ten digit telephone number

◦ Last 4 digits of the SSN

◦ Date of birth

◦ Registered location for emergency calling

◦ Date of service initiation

◦ Date of Last Account Activity

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URD Processing

11/8/2017 13

Status Notifications and Web Application

Data Record Noncompliant

Status File Generated**

Device Registrations Entered Into Database*

Registered Device Status

File Generated**

File Format Noncompliant

Status File Generated*

User Registration Entered Into Database*

Registered User Status File

Generated**

User Identity Valdiation

Failure Status File

Generated**

User Registration Entered Into Database*

*URD Web Application

Updated With Registered

Users

**Status Files Made Available

to Providers

User Registration Database(s)

Providers identify existing users &

devices

Maintain the information

Verify registration for every call

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User Registration Database(s)

There are two outstanding production

issues:

1. The TRS number administrator is

working on the mechanics of the per call

validation

2. The FCC is considering how to handle

installations that are not user-specific.

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CDRs and a Data Warehouse

On a monthly basis, the providers of IP based services support their request for reimbursement with call detail records (CDRs).

RL processes the requests and analyzes the CDRs for eligibility.

RL is in the process of compiling the accumulated CDRs into a data warehouse that will be used with the URD and will provide more insight into the program.

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The next budget cycle

Where do we go from here?

MARS, Price Cap & Cost based rates

Market based rates

Other possibilities

◦ Operating ratio

◦ Electric models

◦ Equate IP services to operator services

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The next budget cycle -1

MARS, Price Cap & Cost based rates

◦ This is business as usual.

◦ This might be the approach without further

guidance from the FCC.

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The next budget cycle - 2

Market based rates (FCC 16-82)

“we propose to transition to a ratemaking

approach that makes use of competitively

established pricing, i.e., contract prices set

through a competitive bidding process,

where feasible.” See: section V of the

NPRM.

it is the Commission’s present intent to

eliminate tiers after the transition to

structural reforms is completed.

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The next budget cycle - 2

Outreach and registration verification will not be handled by providers.

The FCC will contract with a neutral entity to offer the video communications service components of VRS, separate from CA service.

The FCC proposed that the contract price paid to the neutral provider will serve as a benchmark for providers that do not use it.

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The next budget cycle - 2

The FCC proposed to establish a

compensation rate for the provision of

VRS service by auctioning a portion of

VRS traffic.

Data from the TRS numbering directory

indicates that a sizeable percentage of

VRS calls are placed to a relatively small

number of TDNs which terminate at an

even smaller number of companies and

government agencies.

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The next budget cycle - 2

The FCC proposed that an auction of

the right to provide VRS CA service for

all calls

◦ terminated to an appropriately selected

set of telephone numbers

◦ representing a sufficient number of

minutes of use

could be used to establish a market

rate for all minutes of VRS CA service.

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The next budget cycle - 2

Other possibilities

◦ Operating ratio

◦ Electric models

◦ Equate IP services to operator services

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The TRS Fund Advisory Council

See paragraphs 244 – 249 of FCC 13-

82.

In place of the existing TRS Fund

Council, we propose to direct the TRS

Fund Administrator to establish a new

advisory committee to provide advice

on specified matters related to the

TRS program.

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The TRS Fund Advisory Council

With respect to VRS, we intend that the advisory committee provide input to TRS program administrators, including the TRS Fund administrator, the iTRS Outreach Coordinator(s), the VRS access technology reference platform administrator, the TRS-URD administrator, and/or the neutral video communication service provider in the implementation of their responsibilities under this restructuring.

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The TRS Fund Advisory Council

We seek comment on which of the following areas should be included within the new advisory committee’s focus:

(1) technology;

(2) efficiency;

(3) outreach;

(4) user experience (reference functional equivalency requirement);

(5) eligibility, registration, and verification; and

(6) porting and slamming.

In addition, which specific matters within these general areas require input from an advisory committee?

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Thank you

I will be glad to attempt to answer your

questions and look forward to your

ideas regarding next steps in

anticipation of the Spring meeting.

I anticipate that the spring 2017

meeting will be April 4th & 5th, in either

Harrisburg or D.C.

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