If you have a telecommunications business in California or are planning on entering the industry, you are likely already familiar with the licensing requirement of obtaining California telecommunications bonds.
Just as there are different services that you can provide as a telecommunications company, there are also varying ways to get your licensing for operation in this state. This also entails that, as of January 1, 2009, you need a different kind of surety bond for each type of service.
There are two main types: non-dominant interexchange carrier (NDIEC), and competitive local carrier or commercial mobile radiotelephone service carrier (CLC or CMRS). Respectively, there are two licensing processes that require different kinds of surety bonds.
Let’s take a deeper look at the licensing details and the bonding requirements for each of these two services.
#1 Non-dominant interexchange carrier (NDIEC)
The first option for telecommunication services in California is long-distance providers and/or phone card providers, commonly called NDIEC. The licensing process for these is regulated by the California Public Utilities Commission.
To get licensed as an NDIEC provider, you need to complete the application documents and submit them to the Commission either by mail or online. You also need to pay an application fee of $250 and post a surety bond.
In this case, you need the NDIEC performance bond, which should be either $25,000 or 10% of intrastate revenues, whichever is greater.
#2 Competitive local carrier or commercial mobile radiotelephone service carrier (CLC or CMRS)
The second type of telecommunications bond (CLC/CMRS), is needed in two cases. Competitive local carriers (CLC) are required to obtain the bond in order to get a Certificate of Public Necessity and Convenience. Commercial mobile radiotelephone service carriers (CMRS) need it in case they want to offer intrastate wireless telecommunications services in California, for which they must have a Wireless Identification Registration.
CLCs must pay a $75 application fee, while CMRSs need to pay a $250 application fee. All documents for the applications can be submitted to the California Public Utilities Commission either by mail or online.
For both CLCs and CMRSs, the amount of the CLC/CMRS performance bond is $25,000.
California Telecommunications Bonds
In both NDIEC and CLC/CMRS provider licensing, the requirement for a California telecommunications bonds still applies. As a telecommunications provider, be aware that the performance bond does not protect your business like insurance does. The performance bond is a guarantee that your business will abide by federal and state statutes, rules and regulations, thus protecting the general public. It also ensures that you will pay any due fees, taxes, penalties, surcharges, restitution or fines. You can read an additional FAQ for the performance bond requirements created by the California Public Utilities Commission.
Also remember – your telecommunications company does not need to pay the full amount of the bond, but rather only a percentage of it. You can apply online and conveniently get an instant quote.
If you need more information about the California telecommunications bonds, do not hesitate to contact us for more details.