Why "Passing the Buck" No Longer Works for Operators

Many VoIP service providers believe they are safe from liability as long as they block all non-STIR/SHAKEN signed calls, maintain logs of CDRs and PCAPs, and are prepared to hand this data over to the FCC or law enforcement when questioned. While this reactive approach may have sufficed in the past, the regulatory landscape is evolving rapidly.

A clear example of this shift can be seen in the Official Correspondence from the Federal Communications Commission regarding Telecom Carrier Access, Inc. (TCA VoIP). In this case, the FCC flagged TCA VoIP for transmitting illegal robocall traffic on behalf of one or more of its customers. The commission's letter made it clear that simply passing traffic for customers was no longer enough to avoid liability. The company was instructed to not only investigate the traffic but also to take steps to "effectively mitigate illegal traffic" and implement safeguards to prevent it from happening in the future.

This case highlights the importance of active monitoring and blocking of bad traffic. VoIP service providers can no longer simply claim they’re innocent bystanders, passing along whatever traffic their customers send. Instead, they are required to proactively prevent illegal activity—such as robocalling—on their networks.

The FCC’s New Expectations

The FCC now expects VoIP service providers to:

• Proactively identify and block illegal traffic. Turning a blind eye to suspicious activity or relying solely on STIR/SHAKEN compliance will not shield providers from enforcement actions.
• Implement safeguards to prevent bad actors from abusing their networks. Allowing illegal traffic to continue, even if traced to a customer, makes the provider complicit in the eyes of regulators.
• Conduct thorough due diligence on customers. Ensuring proper KYC practices helps prevent malicious entities from gaining access to the telecom ecosystem.

Failure to meet these standards places VoIP service providers at the same legal risk as their customers. The FCC has made it clear that it will hold network providers accountable if they fail to prevent the transmission of illegal robocalls, regardless of whether the traffic originates from an end customer.

Proactive Defense with Denovolab Class 4 Solutions

To meet these new expectations, VoIP service providers need more than compliance—they need proactive tools. Denovolab’s Class 4 softswitch empowers providers to fulfill their KYC and Know Your Network responsibilities by:

• Real-Time Call Blocking: Automatically block traffic associated with YouMail, FTC complaint lists, DNO, and the DNC registry.
• Enhanced Monitoring: Track call patterns and detect suspicious activity indicative of robodialing or fraud.
• Network-Wide Safeguards: Prevent malicious customers from exploiting your infrastructure for illegal activity.
• Customer Vetting Tools: Integrate KYC processes to evaluate customers before allowing them access to your services.

The Risks of Ignoring Compliance

VoIP service providers who fail to act on known illegal traffic face the same risks as their customers:

1. Regulatory Fines: The FCC has shown it will impose heavy penalties for non-compliance.
2. Traffic Blocking: Downstream providers may block all calls originating from non-compliant networks.
3. Reputational Damage: Being associated with illegal robocalls can tarnish your brand and alienate legitimate customers.

Final Thoughts

The days of reactive compliance are over. VoIP service providers must proactively block bad traffic and ensure they have robust systems in place to monitor and secure their networks. Denovolab’s Class 4 softswitch offers the tools needed to stay ahead of regulatory requirements, protect your business, and preserve the integrity of your network.

Investing in proactive compliance measures today ensures not only regulatory adherence but also the long-term success and reputation of your business. Don’t wait until enforcement action forces your hand—protect your network now.