Announcement

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.

The VoIP landscape continues to change…

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.

Latest Articles

View All

Unlocking Swift Communication: The Vodia Prepaid DigitalOcean Cloud Advantage!

Vodia’s prepaid offering on DigitalOcean provides businesses with a fast, flexible way to deploy a fully licensed PBX system. Our tailored plans include options for SBC functionality, certified for MS Teams, enabling seamless integration of advanced PBX features like intelligent call routing, automated attendants, and voicemail, all while ensuring secure, high-fidelity voice communication. With extension-based licensing, organizations can easily scale their system from 10 to 80 extensions, making deployment simple and quick. Whether you’re new to PBX systems or an experienced developer, our step-by-step installation video and documentation guide you through the setup process.

May 5, 2025

The Vodia Phone System: Enterprise-level Communications for SMBs

With over 360 million SMBs across the globe, small and medium-sized businesses face a common challenge: delivering the same high-quality communication experience customers expect from large enterprises—without the enterprise budget. The Vodia phone system is built to meet this need, offering a powerful, scalable solution that transforms any device into a professional business phone. Whether your team is remote, mobile, or in-office, Vodia provides advanced features like call recording, voicemail transcription, Microsoft Teams integration, hot desking, CRM integration, and real-time analytics. Our per-user pricing ensures you get all the functionality without overpaying, and our mobile apps keep you connected from anywhere.

May 2, 2025

The Vodia PBX User Portal - A User's Guide

The Vodia PBX User Web Portal offers a comprehensive and intuitive interface that gives users full control over their communication experience. Designed to complement Vodia’s zero-touch provisioning, the portal enables secure browser-based calling via WebRTC, and syncing with Microsoft or Google contacts. Users can monitor real-time presence, manage call forwarding, handle parked calls, and control service flags for dynamic call routing. It also supports advanced call queue management, voicemail access with optional transcription, call recordings, and internal or SMS messaging. CRM integrations with platforms like Zoho further streamline workflows, while granular user settings and admin-controlled visibility ensure tailored access based on roles.

April 29, 2025