As previously mentioned, the California Public Utilities Commission (CPUC) has authorized a revision of the state’s regulatory framework, introducing new requirements and compliance obligations for interconnected Voice over Internet Protocol (VoIP) providers operating within California. This is a reminder for VoIP providers operating in California under the previous regulatory framework that the deadline to opt out of automatic migration to Digital Voice Fixed (DVF) status is fast approaching. Providers wishing to be regulated as nomadic under the new framework must act by December 27, 2024 to avoid the more burdensome process of relinquishing their DVF registration and registering as Digital Voice Nomadic (DVN) providers, potentially subjecting themselves to heightened CPUC scrutiny for missing the December 27 deadline.
Potential Implications
- Providers currently registered under the old legal framework will be automatically migrated to DVF status unless they file to opt out by the deadline.
- Any provider that misses the opt-out deadline but wishes to obtain a nomadic designation later must:
- Simultaneously surrender their DVF registration by filing a Tier 2 advice letter, and
- Submit a nomadic registration form.
This dual filing process may raise questions about why the provider did not take advantage of the 45-day grace period and could lead CPUC staff to scrutinize the provider’s eligibility for nomadic-only status more closely.
The CPUC may also investigate whether the provider’s service offerings align with nomadic designation requirements and evaluate the provider’s compliance history and readiness to meet the obligations associated with nomadic status.
Action Items
- Review Your Service Offerings: Assess whether your current operations qualify for nomadic designation and whether opting out of DVF status aligns with your business objectives.
- File to Opt Out: If opting out of automatic migration, ensure all necessary documentation is submitted to the CPUC by December 27, 2024.
- Consult Legal Counsel: Given the potential for increased scrutiny and compliance requirements, consulting with experienced telecommunications counsel is strongly advised.
The CommLaw Group Can Help!
If you need assistance evaluating your eligibility for nomadic designation or preparing and submitting the necessary filings to the CPUC, we encourage you to contact the attorney assigned to your account or reach out to Jonathan S. Marashlian at jsm@commlawgroup.com. Our experienced team is ready to help you navigate these regulatory changes, ensuring timely compliance and minimizing potential impacts on your operations.
