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California Demands Licensure For VoIP Providers

muonzoo writes "Looks like California will be wrangling up the VoIP companies and mowing them down. Or, at least licensing them. CNET has a story about state legislators' push for all VoIP companies in the state to carry a Telephone Operator License. CNET also has a quick blurb about Vonage and how they have recently started charging customers a 'Regulatory Recovery Fee.' Ugly stuff for a young industry." Here's our earlier post about Vonage charging the regulatory recovery fee.

17 of 265 comments (clear)

  1. Here's a link by Sir+Haxalot · · Score: 4, Informative

    to the same story on ZDNet.

    --
    I have over 70 freaks, do you?
    1. Re:Here's a link by gardel · · Score: 3, Informative

      Here's a better link to a much more complete story (that CNET clearly followed):

      http://www.voxilla.com/Article25-nested-order0-t hr eshold0.phtml

      --
      Marcelo Rodriguez Editor Voxilla.com http://voxilla.com
  2. Operator license = fees and taxes by r_glen · · Score: 4, Insightful

    Yet another not-so-subtle attempt at increasing state revenue.
    Stay away from my internet, dammit!

  3. Internal VoIP Included? by nurb432 · · Score: 4, Interesting

    What if i do VoIP totally inside my company. does this sort of garbage effect me as well?

    what about software suppliers.. ( both commercial and OSS )

    etc etc.

    ( and no i didnt read it.. link didnt come up here )

    --
    ---- Booth was a patriot ----
    1. Re:Internal VoIP Included? by Quarters · · Score: 4, Insightful
      Do you have to pay any telephone operator regulatory charges now?

      Do you sell your VoIP services to end users?

      If you answered yes to either/both of those, then you probably are affected. If you're not a VoIP provider then I doubt you have anything to worry about.

      I don't see this as as big a deal as the submittor of the article does. If a company is a telephone provider, regardless of the trasmission mechanism used, then they should have to play using the same set of rules/regulations as the other telephone providers.

    2. Re:Internal VoIP Included? by M$+Mole · · Score: 3, Insightful

      This is exactly right. I work for a police deptartment...how do you think the state funds 911 Emergency Services? Taxes on phones. Look at the bottom of your phone bill fellow Californians, there's a tax notice there that goes to supporting your emergency services.

      If someone is acting as a PROVIDER of phone services, then the tax needs to apply to them.

      --
      Karma: Non-existant. Due mostly to the fact that you smell funny and nobody likes you.
  4. Bullshit by eln · · Score: 5, Interesting

    Just because VoIP involves voice, that does NOT mean it's the same as telephone service. The monopolistic nature of telephone service (only one company can realistically have lines in a given area, particularly in the "last mile") makes heavy regulation and regulatory fees necessary. VoIP does not suffer from this physical limitation to competition, and thus any number of VoIP providers can exist in any area. This is yet another blatant attempt of government to cash in on an emerging technology.

  5. Just wait for the Taxinator to get in office... by warpSpeed · · Score: 4, Funny
    When Arrrnold gets in office, this will all get taken care of :-)

    *ducks, and runs for life...*

  6. Voice IM? by moehoward · · Score: 4, Interesting

    What about things like Voice IM? The standards for defining telephony are pretty loose. I talk to people (video conference, voice chat...) over IM all the time via Yahoo and Windows Messenger.

    Seems odd to single it out because the lines already exist. I thought that the phone companies were regulated in large part because of the necessity of having only one line per house, rather than 20 providers digging up your town.

    Don't most people already pay these access charges in one way or another via ISPs or other downstream providers.

    I suspect that the politicians are much more stupid than we assumed. And I mean that.

    --
    "If you want to improve, be content to be thought foolish and stupid." - Epictetus
  7. Re:Makes sense to me..... by edstromp · · Score: 3, Informative

    Because the laws and such were originally defined with the understanding that there would be a monopoly on telephone services (or at least the line into your house).

    That is no longer the case. Especially with the internet, as you can get a connection by cable, dsl, satelite, wi-fi, fm, etc... It's a free market. Regulation (at least in this sense) is no longer necessary.

    And becides does it make sense to charge a company in NJ for this? All they have are customers in other states. They don't own any property or goods outside of their centraly located servers... which don't reside in your state.

  8. Typical by thefirelane · · Score: 3, Insightful
    With Gray Davis' days numbered, the California legislature is cranking out as many liberal laws as possible. The Wall Street Journal has an article about it on the front page.

    This legislation serves two real purposes: winning over many Democratic supporters and interest groups and giving Democrats ammo to fire against Arnold when he repeals them. Note, the last reason is fairly typical of any political group.... Clinton signed environmental legislation that was extremely harsh, knowing that if Bush won he'd have to repeal them which would let Democrats call him anti-environmental (If Gore won, no one would care about him repealing the laws, as it didn't fit into the stereotype)

    Recent CA laws passed include:
    • granting illegal immigrants the right to driver's licenses
    • enacting the nation's toughest financial-privacy and antispam measures
    • expanding the rights of gay domestic partners
    and coming up: requiring businesses with 50 or more employees to provide health insurance or pay into a state pool to purchase the coverage


    ---Lane
  9. Vonage is NOT P2P by justMichael · · Score: 4, Informative

    With Vonage you can call ANY phone number you want, not just some other VoIP phone.

    And you don't get a "handset" you get a Cisco ATA186 that you plug any phone you want into.

    It talks to their servers becasue at some point it has to get injected back into the POTS network as an analog call.

  10. Triple Bullshit on you by muckdog · · Score: 5, Insightful

    You are already paying tax and regulatory fees for your cable and DSL lines. Why should you have to pay them again for VoIP?

  11. Re:California by Jhon · · Score: 3, Informative
    ...because he lied about the deficit. Not the taxes.
    Actually, it's because he not ONLY lied about the deficit, he lied that taxes would not need to be raised. Days after he was elected, he said: "Oh... that 4 billion shortfall I was talking about? It's really 30+ billion". Then he trippled car registration (tax). Then he talked about going to the California supreme court to remove the 2/3ds assembly/senate majorities needed to raise/levy taxes. Then he talked about raising the highest income tax bracket to over 11% (which in CA starts at $38k!). Then he talked about raising sales tax...

    Believe me... as a Californian, it's about the taxes and it's about spending money we don't have. If ANYTHING has come out of the recall effort so far, its that the surest way to PISS OFF the voters is to raise taxes to cover spending money we didn't have -- and it stopped most of what Davis and the legislature wanted to do.
  12. Re:Not Just California though by Oliver+Wendell+Jones · · Score: 4, Funny

    it's OK when it stops you, but God forbid it ever touch me! Fairly hypocritical.

    Well, duh... Are you new to Slashdot?

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    5) If it involves Natalie Portman, Beowulf Clusters or Pants Full of Hot Grits then its good for EVERYBODY
    6)If it involves the GOATSE guy its bad for EVERYBODY.

    Did I miss any?

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  13. As I've said before... by IPFreely · · Score: 4, Insightful
    It's not about carrying voice traffic over TCP/IP, though that is what the name implies. What these VOIP companies are doing is tying their internet operations into local REAL telephone connections. They are using normal, dialable 7/10 digit numbers to identify destinations, and they are crossing traffic over between internet and telephone networks.

    AOL Talk, MS Netmeeting, heck even Battlecom allow you to carry voice over IP. But the difference is you can't dial up you phone number from Battlecom and make your phone ring.

    The VOIP in these cases are companies that tie into real telephone networks. They issue real telephone numbers to their customers. You can use a normal telephone to reach them. That means they are regulatable by the same standards as normal telephone. The regulators own the address space, not just the service standards.

    The easiest way to avoid this regulation and fees is not to tie into the telephone network, don't use the same 7/10 digit address space and don't claim you can call normal telephones. You do that and there's no fees and no regulation.

    --
    There is nothing so silly as other peoples traditions, and nothing so sacred as our own.
  14. double tax by blitziod · · Score: 3, Insightful

    so i have to pay state tax on on my cable/dsl connection THEN pay again to use some of that same bandwidth as a phone line? That is making me pay twice for the same BW and connection.

    --
    The only way to bust a doper--is when you yourself become a smoker!