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.
Vodia PBX version 69.5.6 brings several important updates, including real-time AI integration with OpenAI, enabling enhanced workflows, and call transcriptions through the Whisper API, with the option for self-hosting to ensure better data privacy. The release also introduces cloud storage for call recordings via the S3 protocol, offering flexibility and easier compliance. The user interface has been refined for a smoother experience, and queue management features have been improved with added CSV export options. Security is boosted with TLS 1.3, and the release expands VoIP hardware support. Additionally, new Azure cloud hosting and licensing models provide greater flexibility and performance for users.
Vodia is attending Enterprise Connect 2025, where Sales Engineer Eric Altman will be available on March 18-19 to meet with partners and industry professionals. The event is a key opportunity to discuss Vodia’s latest innovations, including its Microsoft Teams-certified phone system, integration with Cliniko for healthcare providers, and its beta PBX featuring OpenAI API integration. Vodia has also launched a series of articles highlighting its PBX capabilities, with topics like its REST API, web user portal, and call recording. Additionally, the company is introducing a new podcast, “Vodia - Giving Voice to Our Partners,” featuring conversations with MSPs and SIP providers.
Vodia’s REST API takes VoIP communication to the next level, offering businesses full control over their PBX environment. With seamless integration into CRMs, automated provisioning, and custom reporting, Vodia’s API streamlines workflows and enhances user experiences. It supports powerful features like voice calls, SMS, fax, voicemail transcription, and advanced analytics. Whether deploying on-premise or in the cloud, Vodia provides a flexible, scalable, and reliable solution for businesses of all sizes. Integrate with Microsoft Teams, optimize telephony processes, and deliver top-notch call quality with Vodia’s PBX system.
.svg)
