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California Moves To Regulate VoIP Calls

by Glen Shapiro, LawAndTax-News.com, New York

16 February 2004

The Californian Public Utilities Commission (CPUC) is considering the creation of a regulatory framework for voice over internet protocol (VoIP) telephone calls, it emerged last week.

According to reports, a Commission panel concluded that VoIP services are public utilities, and are therefore subject to regulation as such.

Estimates suggest that VoIP could represent as much as 40% of intrastate telecoms revenue by 2008. However, currently providers are not regulated as telecoms firms, and have therefore not been obliged to contribute to special state funds, pay interconnection charges, or provide free access for 911 callers.

The CPUC has suggested that if the rules governing VoIP calls are not changed, state programs supported by special contributions from the telecoms sector will lose between $183 million and $407 million in revenue over the next four years.

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