Cloud Communications Alliance Files Comments Opposing the California PUC

• The California Public Utilities Commission’s (CPUC) Proposed Decision seeks to introduce a stricter regulatory framework for VoIP providers, significantly increasing compliance burdens and creating new categories for nomadic and fixed VoIP services.
• The Cloud Communications Alliance (CCA) filed Comments in opposition, stating that the Proposed Decision incorrectly assumes that VoIP providers can track both the origin and termination of calls, overlooking the technical limitations that prevent such tracking, and contradicting federal regulations set by the FCC.
• The CCA argues that reclassifying VoIP technology as traditional telecommunications infrastructure is misguided, as VoIP operates through flexible, cloud-based systems rather than physical assets like traditional telecom networks.
• The Proposed Decision would impose state-level regulatory approval for major VoIP transactions, such as mergers and acquisitions, adding barriers that conflict with the FCC’s deregulatory framework designed to promote competition and innovation in internet-based communications.
• According to the CCA, if adopted, the decision would stifle innovation, deter investment, and disrupt the competitive VoIP market, which has thrived under federal deregulatory policies. The CCA urges the CPUC to align its policies with federal regulations to foster continued growth in the sector.

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