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.