20050405_1143.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:MARCH 31, 2005
RE:2004 TELECOMMUNICATIONS RELAY SERVICE ANNUAL REPORT
On February 8 2005 , Idaho s Telecommunications Relay Service (TRS) Administrator
Mr. Robert Dunbar, submitted the 2004 TRS Annual Report to the Commission. He reported the
relay service conversation time, including interstate long distance, totaled 403 866 minutes. This
represents a 15% decrease from calendar year 2003. Likewise, disbursements to Hamilton
Telecommunications of$413 469 for in-state relay calls were approximately 16% less than 2003.
Idaho s TRS Fund reimburses Hamilton Telecommunications for handling in-state relay traffic
while the National Exchange Carrier Association (NECA) reimburses Hamilton for out-of-state
relay service.
Fund Disbursements 2004
$413,469
33.815
$447 284
2003
$492 933
36.031
$528 964
Hamilton Telecommunications
Program Administrative Expenses & Fees
Total
The TRS fund is supported by assessments on MTS/W A TS minutes as well as access
lines. The total number of intrastate toll minutes reported to the Administrator, during calendar
year 2004, was approximately 290 224 680, and the number of lines reported was approximately
675 176. The annual contributions decreased by $882 in 2004 and the end-of-year fund balance
was $267 121.
DECISION MEMORANDUM - 1 -APRIL 1 , 2005
TRS Revenue Contributions 2004 2003
From basic service providers $323 125 (61 %)$307 059 (58%)
From MTS/W A TS providers 203 157 (39%)220 041 (42%)
Interest earned on funds 112 176
Total $526 394 $527 276
2005 TRS CONTRIBUTIONS
Mr. Dunbar has projected the 2005 annual operating expense requirement will be
$448,420. This includes a forecasted decrease in traditional relay usage reflecting user migration
to Internet and video relay. The Administrator further applies a stable line count during 2005
and a continued decrease in long distance minutes. Additional budget items for 2005, includes
funds associated with a triennial audit expected to occur in the fall, and the costs associated with
processing of the TRS Request for Proposal (RFP). Hamilton s Idaho TRS contract will expire
in December 2005. Mr. Dunbar anticipates the new contract will be awarded sometime in
September. The Administrator also reminds the Commission, should the Federal
Communications Commission require states to pay for other relay-related services such as
Internet and video relay, the fund revenue will be quickly exhausted and the financial situation
will require an immediate and substantial revenue increase in order to continue providing relay
servIce.
Based on the estimated budget requirements for this year, Mr. Dunbar recommends the
TRS contribution remain unchanged. At the current rates, the end-of-year balance is estimated at
$329 606.
STAFF RECOMMENDATION
Based on the proposed TRS budget for 2005 , Staff agrees with the Administrator
recommendation that the 2005 TRS contribution remain unchanged at $.04 per line per month
and $.0007 per intrastate toll minute in accordance with Order No. 29472.
COMMISSION DECISION
1. Does the commission wish to keep the TRS contribution at the current level as
established by Order No. 29472?
DECISION MEMORANDUM - 2 -APRIL 1 , 2005
2. Does the Commission wish to change the distribution or the methodology in some
other way?
Grace Seaman
i:udmemos/TRS annual report 2004
DECISION MEMORANDUM - 3 -APRIL 1 , 2005