California Public Utilities Commission (CPUC) Proposes Decision in VoIP Licensing and Regulation Rulemaking Proceeding
Published on:
October 17, 2024
The California Public Utilities Commission (CPUC) proposed a decision on September 13, 2024, introducing a new regulatory framework for VoIP providers: Digital Voice Nomadic (DVN) for nomadic services and Digital Voice Fixed (DVF) for fixed services. This proposal mandates different registration requirements for VoIP providers, similar to traditional telecommunications regulations. The Cloud Communications Alliance (CCA) opposed the decision, citing technical and regulatory conflicts with FCC policies. The outcome remains to be seen as stakeholders closely monitor the decision.
On September 13, 2024, the California Public Utilities Commission (CPUC) proposed a decision establishing a regulatory framework for telephone companies providing interconnected VoIP service.
The CPUC decision designates two new types of utilities: (1) Digital Voice Nomadic (DVN) designation for providers who only offer nomadic interconnected VoIP services, and (2) Digital Voice Fixed (DVF) designation for providers offering fixed interconnected VoIP.
Per the proposed decision, nomadic-only interconnected VoIP service providers shall be subject to a Nomadic Registration process similar to the Commission’s existing Wireless Identification Registration (this registration is required for companies that offer intrastate wireless telecommunications services in California), while fixed interconnected VoIP service providers shall continue to be subject to operating authority requirements similar to traditional wireline service providers.
The proposed decision requires facilities-based interconnected VoIP service providers to obtain a Certificate of Public Convenience and Necessity pursuant to Public Utilities Code Section 1001 to operate in California, while non-facilities-based fixed interconnected VoIP service providers can use the Section 1013 registration process to obtain operating authority.
Much as they are at the SEC (Securities and Exchange Commission) and other federal and state governing bodies, the CPUC’s proposed decisions and rule changes are open to comments, and on October 10, 2024 the Cloud Communications Alliance (CCA) filed comments “strongly urging” the CPUC to reject the proposed decision.
According to the CCA, the proposed decision “incorrectly assumes” VoIP providers can track the origin and termination of calls, which isn’t possible on account of technical limitations preventing this type of tracking, and because this type of tracking isn’t compliant with FCC regulations.
The CCA comments also state it would be “misguided” on the part of the CPUC to reclassify VoIP technology as traditional telecommunications infrastructure, as VoIP doesn’t operate through traditional telecom networks (physical assets), and the imposition of regulatory approval at state level for significant VoIP transactions (including M&A) would create barriers in conflict with the FCC deregulatory framework, which was designed to spur competition and innovation in the Internet communications marketplace.
Finally, the CCA believes if the proposed decision is adopted it will “stifle innovation, deter investment, and disrupt the competitive VoIP market,” and that the CPUC should bring its policies in line with FCC regulations and continue to foster innovation and growth in the sector, in California and beyond.
What will the CPUC decide? Will the CCA prevail, or will the proposed decision become an ironclad rule for California internet and telecommunications companies? VoIP providers in California and beyond will be watching closely…
About Vodia
Vodia Networks, Inc. is a pioneering provider of B2B Cloud Communications Solutions catering to enterprises, contact centers and service providers. Vodia's PBX software boasts an extensive suite of business telephony features for on-premise and cloud-based systems and operates seamlessly across Windows, Linux or Mac platforms. Fully compliant with SIP industry standards, the Vodia phone system integrates effortlessly with a wide range of SIP-based devices and trunking providers, granting ultimate freedom in telephony. Vodia’s multi-tenancy platforms are compatible with an unprecedented number of technologies, including desk phones, softphones and APIs, for myriad third-party software and CRM systems. Our mission is to empower our partners and end-users with the world's best cloud PBX and personalized support to ensure their success at every turn. Our US headquarters are in Boston and our European headquarters are in Berlin; we also maintain offices in Beijing, Hong Kong, Nicosia (Cyprus) and Sydney, Australia. Visit Vodia on LinkedIn, X and YouTube.
Although many consider fax outdated, it continues to play a crucial role in sectors where compliance, confidentiality, and legal proof of delivery are non-negotiable. Healthcare providers rely on fax to meet HIPAA requirements, while industries such as finance, law, and real estate depend on it for contracts and documents that require signatures or legally verifiable transmission. Unlike email, fax offers confirmation reports that serve as proof of receipt, along with time-stamped records that hold up in legal proceedings. With Vodia’s PBX, digital fax becomes faster, easier, and more accessible than ever before, enabling users to drag and drop documents, monitor transmission progress, and receive immediate confirmations.
Vodia PBX now supports SAML integration, offering a secure and standards-based method for enterprise users to access their phone system through single sign-on. SAML, or Security Assertion Markup Language, allows employees to authenticate in one system and access other systems without managing multiple passwords, improving both security and user experience. By exchanging digitally signed SAML Assertions between Identity Providers and Service Providers, Vodia ensures seamless authentication across internal and external applications. With this integration, IT teams can simplify user management, reduce login complexity, and maintain strong security controls for business communications.
Digital communication is now woven into daily school life, from classroom platforms to how parents and teachers connect. Vodia Smart School takes this further with a VoIP-powered system that provides fast, secure, and documented communication for consent forms, sick notes, and routine notifications. In urgent situations, it enables automated alerts to staff, parents, and first responders, ensuring rapid responses when time is critical. Fully GDPR-compliant and offering features such as caller ID masking, MS Teams integration, and control of bells, announcements, and school systems, Smart School gives schools a modern, reliable alternative to legacy systems while improving both safety and everyday operations.
.svg)
