VoIP providers must apply for licenses, say CA regulators

Following similar moves by regulators in Wisconsin and Minnesota, companies that provide 'net telephony services to consumers in California will soon be required to obtain the same operator licences as regular old phone companies. VoIP developers argue this is not only an inaccurate application of the law -- they're not telecom providers, they're data carriers -- but that it will also throw a regulatory wet towel on an industry that's still in its infancy:

VoIP providers argue that a state's rules govern only telephone calls made over traditional telephone networks. VoIP calls use the Internet and should be excluded, the providers argue. But that distinction is becoming irrelevant, said John Leutza, director of the California Public Utilities Commission's telecommunications division. "They sure look like a phone company in nearly every regard," he said during an interview on Tuesday. "This will be California's policy going forward." Because of its size and national stature, California's decision to bring VoIP providers into the regulatory fold could have enormous sway on the dozens of other state's now investigating a similar step.

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