CCA Argues Against VoIP Regulation in California

The CCA recently filed comments in a proceeding before the California Public Utilities Commission (“CPUC”), which is considering whether to impose service quality metrics, and associated enforcement penalties, on VoIP service. The proposal, if ultimately adopted, could apply to any VoIP provider serving customers in California. California currently imposes some service quality metrics and reporting on traditional, circuit-switched service, but not on VoIP.

CCA’s comments supported arguments already made before the CPUC that it does not have authority to regulate VoIP services and would be preempted by federal law. Our primary focus, however, was to ensure that the CPUC adopt policy positions that further the best interest of California’s business community and the CCA members that serve those businesses by providing sophisticated, over-the-top, cloud-based unified communications products to businesses of all sizes. California’s existing service quality rules exempt “large businesses,” defined as those with six or more access lines, and exempt non-facilities-based providers defined as those providers that do not own or manage the last mile connection.

CCA urged the CPUC to not only retain those exemptions should it adopt service quality metrics on VoIP service but to go further by exempting all business-class services. CCA pointed out that cloud-based services are available to any size business with a broadband connection and that robust competition and market forces, rather than prescriptive regulation, best ensures service quality. CCA will continue to monitor this proceeding and advocate on behalf of its members’ interests.

If you have any questions or would like more information, please contact our counsel on this issue, Michael Pryor, at mpryor@bhfs.com