VoIP Laws and Regulations in the USA

In this age of digitization, VoIP or cloud telephony is the new means of telecommunication. Rules and regulations have been put in place to regulate its use and functioning. But do we really know what these laws are?

The FCC (Federal Communication Commission) is the authority responsible for creating and implementing the regulatory frameworks for PSTN (Public Switched Telephone Network) and VoIP telephony in the United States.

In this blog, we will look at all the VoIP Laws and Regulations in the USA.

What is VoIP?

VoIP (Voice over Internet Protocol) refers to the systems that allow you to make and receive phone calls over the Internet rather than a traditional telephone line. It is also called IP telephony, internet calling, or voice-over-network.

VoIP technology works by converting human voice signals into data packets for transmission over the Internet. VoIP phone services are much cheaper and more advanced than traditional phone services.

Some popular VoIP applications are Skype, Zoom, WhatsApp, etc.

FCC Regulations for Interconnected VoIP

Understanding the FCC’s VoIP regulations is critical for both VoIP users and service providers. Unlawful executions or mismanagement of these regulations can land the provider in legal trouble.

Interconnected VoIP services allow users to make and receive phone calls from the Public Switched Telephone Network (PSTN). The core areas addressed by the FCC regulation for interconnected VoIP services are as follows:

1. Emergency Services (911)

VoIP service providers must provide access to emergency services, specifically 911, irrespective of the phone carrier they are using. As per the FCC regulations, interconnected VoIP service providers must:

• Enable users to call 911 and share their location information with emergency responders.
• Clearly communicate any limitations of the 911 service access and obtain firm acknowledgment from the customers.
• Ensure that the 911 service is activated by default, so users do not need to enable them manually.

2. Number Portability

The FCC regulation mandates that a VoIP service provider must allow customers to retain their existing phone number while switching to another VoIP service provider.

The FCC requires interconnected VoIP service providers to offer this option without charging.

The Local Number Portability (LNP) promotes healthy competition, consumer choice, and increased optionality.

3. Universal Service Fund Contributions

The FCC requires interconnected VoIP service providers to contribute a certain percentage of their interstate and international revenues to the Universal Service Fund (USF). This percentage is called the contributing factor, and the contribution rate is adjusted quarterly.

4. Disability Access

Interconnected VoIP providers must comply with the Twenty-First Century Communications and Video Accessibility Act (CVAA) according to FCC guidelines.

This is to ensure that persons with disabilities can access their services. To comply, VoIP service providers must provide access to Telecommunications Relay Services (TRS) and ensure compatibility with assistive technologies like hearing aids and text telephones (TTYs).

5. Privacy and Customer Proprietary Network Information (CPNI)

The FCC requires interconnected VoIP service providers to follow regulations regarding the protection of Customer Proprietary Network Information (CPNI).

CPNI includes personal information like billing details, addresses, and call and messaging records. Service providers are prohibited from using, sharing, and disclosing this information. They also cannot use it for marketing purposes without the customer’s consent.

6. Outage Reporting

The FCC requires the VoIP service providers to submit a report of the major network outages through the Network Outage Reporting System (NORS).

• Outages impacting 911 services must be reported within 120 minutes of discovery.
• Outages impacting 900,000 user minutes and more must be reported within 24 hours to prevent disastrous impacts on critical facilities and services.

FCC Guidelines for Non-Interconnected VoIP

Non-interconnected VoIP, also referred to as peer-to-peer VoIP, allows users to make calls over the Internet. Unlike interconnected VoIP, non-interconnected VoIP is not connected to the traditional Public Switched Telephone Network (PSTN).

The key areas covered by FCC regulations regarding non-interconnected VoIP services are as follows:

1. 911 Services

Unlike interconnected VoIP service providers, non-interconnected VoIP service providers aren’t required to provide 911 services. However, a non-interconnected VoIP service can choose to provide 911 services voluntarily. 

If willing, the non-interconnected VoIP services must comply with FCC’s E911 (Enhanced 911) services rules, which include:

• Automatically providing location information for 911 calls.
• Routing 911 calls to an appropriate Public Safety Answering Point (PSAP).
• Prioritizing 911 calls over other calls.

2. Accessibility Requirements

The CVAA requires non-interconnected VoIP service providers to make their services accessible to individuals with disabilities. The key provisions in compliance with CVAA guidelines for non-interconnected VoIP service providers include the following:

• The provider must ensure accessibility for individuals with disabilities unless doing so would cause an undue burden or fundamentally alter the service.
• The non-interconnected VoIP service providers must contribute to the Telecommunications Relay Service (TRS) Fund — a fund that supports services for people with speech and hearing disabilities.
• The providers must comply with all the requirements related to recordkeeping and compliance certification.

3. Consumer Protection

The FCC requires non-interconnected VoIP service providers to uphold customer privacy by protecting Customer Proprietary Network Information (CPNI). Here are the key FCC guidelines for non-interconnected VoIP to protect CPNI:

• Data Privacy Protections: 

The use, disclosure, or access to CPNI without customer consent is prohibited. Measures to safeguard CPNI from unauthorized access or disclosure must be implemented.

• Clear Terms of Service: 

The customers must be informed about their CPNI rights, the company’s privacy policies, service features, and dispute resolution processes.

• Fair and Transparent Billing:

Providers must offer clear and detailed billing practices, helping customers understand service costs and avoid disputes.

Common Compliance Laws

Here are some laws practiced globally by all VoIP service providers to ensure data privacy and protection.

1. HIPAA

HIPAA is the Health Insurance Portability and Accountability Act, a US federal law that safeguards patients’ sensitive health information. It establishes standards for data exchange within the healthcare industry and ensures the confidentiality and security of medical records.

HIPAA also includes regulations for protecting patient privacy, governing the use and disclosure of health information, and implementing policies to help providers and organizations maintain secure health data practices.

2. KARI’S LAW

Kari’s law requires businesses and organizations using multi-line telephone systems to ensure direct 911 dialing without a prefix.

Additionally, the law mandates that a notification be sent to someone who can observe it and assist emergency responders as soon as a 911 call is made.

3. Rau Baum’s Act

The Rau Baum’s Act emphasizes the importance of providing precise location information during 911 calls. Emergency assistance must include a dispatchable location detailing the address and relevant specifics, such as the floor, suite, or room, to ensure an accurate and timely response.

Dialaxy as the best VoIP Solution in the United States

If you want to call your associates abroad, Dialaxy is an excellent choice for you. We offer virtual phone numbers, VoIP services, and many more for businesses all across the US and Canada. 

A few reasons as to why you should choose Dialaxy are as follows:

• We offer comparatively lower international calling rates compared to competitors, greatly reducing your communication expenses.
• No hardware setup is required to connect with Dialaxy. All you need is a stable and reliable internet connection.
• We enable businesses to scale up and down easily based on their needs and goals.
• We also offers many advanced call features, such as high-quality voice calls, call filtering, call forwarding, call recording, and more.
• It provides a user-friendly interface for managing calls and call metrics, viewing call history, accessing user accounts, and assessing cloud contact center performance.  
• Finally, we provide 24/7 customer support all across the world.

Conclusion

Before diving into the world of VoIP in the United States of America, you must know all about the legal guidelines and regulations. These FCC rules encompass all regulations regarding emergency service access, privacy protection, number portability, and more.

With the evolving landscape of technology, it is best to constantly update yourself with new changes. Understanding these regulatory actions would help you operate your business without any legal troubles and choose the best VoIP provider for all your communication needs.

FAQs 

What are VoIP laws and regulations?

VoIP laws and regulations ensure the proper functioning and compliance of internet-based telephony services.

What are the FCC rules for VoIP?

The key rules for VoIP regulation set by the FCC (Federal Communications Commission are as follows:

• VoIP service providers must ensure quick access to emergency services, such as 911.
• VoIP providers must protect customer information and not share it with other parties without the user’s consent.
• VoIP providers must allow number porting without cutting off service.
• VoIP providers must ensure service availability and reliability.
• VoIP providers must make billing features transparent to their customers.
• VoIP providers must ensure that individuals with disabilities can easily use their services.
• VoIP providers must report major network outages that may severely impact critical services and facilities.

What is CPNI, and how does it affect my VoIP service?

CPNI (Customer Proprietary Network Information) refers to the personal data that telecommunication providers collect about their customers. This data can include call logs, billing information, location data, and so on.

VoIP service providers deploy security measures to safeguard CPNI and only allow authorized individuals to access it. They also must get the user’s consent before they share information with third parties. This way, the service providers facilitate a pleasant, hassle-free, and secure communication for all its users.

How does 911 work with VoIP?

When a user makes a 911 call, the user need not dial any prefix. A notification is sent to a designated person who alerts responders and assists in directing them to the caller’s location. The user’s location is automatically shared with the emergency responders. 

The limitations of dialing an emergency service, such as 911, are:

• VoIP service providers may not be able to track user’s location on time. Users must update their emergency address with the provider to ensure proper location information is provided to responders.
• Since VoIP is dependent on Internet connectivity, 911 services may be disrupted if the Internet or power goes out.