Marashlian & Donahue, PLLC, The CommLaw Group, is pleased to announce the filing of a Petition for Declaratory Ruling with the Federal Communications Commission (FCC) on behalf of the Cloud Voice Alliance (CVA) and the Cloud Communications Alliance (CCA). The petition challenges the California Public Utilities Commission’s (CPUC) Decision 24-11-003, which imposes a new regulatory framework on interconnected Voice over Internet Protocol (VoIP) services.
The petition argues that the CPUC’s regulatory framework is inconsistent with federal law and FCC precedent, which have long recognized that VoIP services are inherently interstate in nature and fall under the FCC’s exclusive jurisdiction. It further asserts that these state-imposed requirements create unnecessary regulatory burdens, deter competition, and stifle innovation in the VoIP marketplace. The petition urges the FCC to preempt the CPUC’s rules, reaffirm its commitment to a unified national regulatory framework, and prevent the patchwork of conflicting state-level regulations that could disrupt the industry.
Key Issues Highlighted in the Petition
The joint petition identifies several areas where the CPUC’s new framework oversteps legal and jurisdictional boundaries, creating conflicts with federal law and threatening industry stability:
- Federal Preemption and Jurisdictional Overreach
The FCC has repeatedly affirmed that VoIP services are subject to federal jurisdiction due to their inherently interstate nature. The CPUC’s attempt to impose state-specific regulations contradicts FCC precedent, particularly the Vonage Order, which established that VoIP services cannot be regulated on a state-by-state basis due to their geographically non-determinate nature. The CPUC’s decision disregards this precedent and introduces regulatory uncertainty by attempting to impose a separate state regime. - Barriers to Entry and Competition
The CPUC’s regulatory framework introduces state-level requirements that create substantial compliance burdens, particularly for small and mid-sized VoIP providers. These new obligations — ranging from reporting mandates to operational restrictions — drive up costs and make it more difficult for new entrants to compete. The increased regulatory complexity ultimately benefits larger, established players while stifling innovation and consumer choice.
Position of CCA and CVA
Both the Cloud Communications Alliance (CCA) and the Cloud Voice Alliance (CVA) strongly advocate for a consistent, federal approach to VoIP regulation. Their position aligns with the FCC’s long-standing deregulatory framework, which has allowed the VoIP industry to thrive, innovate, and expand without state-imposed barriers. CCA and CVA warn that California’s regulatory overreach threatens this model by opening the door for other states to impose their own, conflicting regulations, leading to a fragmented and burdensome regulatory landscape that could slow industry growth and increase costs for consumers.
A Call for FCC Action
In light of these concerns, the petition calls on the FCC to:
- Reaffirm its exclusive jurisdiction over VoIP services.
- Preempt the CPUC’s rules, preventing a state-by-state regulatory patchwork that conflicts with federal policy.
- Preserve a competitive and innovation-friendly marketplace by ensuring that VoIP providers are not subject to unnecessary and conflicting state-level mandates.
By taking decisive action, the FCC can reinforce its role as the sole regulator of VoIP services, protect the industry from harmful state intervention, and preserve the regulatory certainty necessary for continued innovation and investment.
Marashlian & Donahue, PLLC remains committed to advocating on behalf of CCA, CVA, and the broader VoIP industry, ensuring that regulatory policies align with federal law, industry best practices, and the principles of fair competition.
For more information about the Petition or to learn how you can help support the CCA and CVA’s missions, please contact Jonathan Marashlian at jsm@commlawgroup.com.
