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ClearCaptions Urges FCC to Update Telecom Relay Operating Margins

ClearCaptions urged the FCC to update its operating margin for video relay services and IP captioned telephone services funded by the Telecom Relay Services Fund based on "more comparable companies and recent data." A "cost-plus-percentage of 16% to 21% above…

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all real costs represents a reasonable range for the commission's VRS and IP CTS ratemaking," it told Consumer and Governmental Affairs Bureau staff, the Office of Managing Director, and Office of Economics and Analytics staff, per an ex parte filing posted Wednesday in docket 03-123. The record shows providers "support updating the operating margin," ClearCaptions said: "The 7.6% to 12.35% operating margin the commission relies on is outdated and the industry has changed so that the companies used to establish the operating margin are no longer comparable."