California CPUC NDIEC Telecom Performance Bond

The California Public Utilities Commission (CPUC) requires all telecommunications carriers operating in California to maintain a continuous $25,000 performance bond filed with the Commission.

✓ NDIEC Required
✓ CPCN Holders
✓ VoIP Providers
✓ WIR Holders
✓ Continuous Bond
✓ High Approval Rate

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What Is the California CPUC NDIEC Telecom Performance Bond?

The California Public Utilities Commission (CPUC) requires all telecommunications carriers operating in California to maintain a continuous $25,000 performance bond filed with the Commission. This requirement applies to:

  • Non-Dominant Interexchange Carriers (NDIEC)
  • Certificate of Public Convenience and Necessity (CPCN) holders
  • Interconnected VoIP providers
  • Wireless Identification Registration (WIR) holders

This bond is not optional. The CPUC can revoke your operating authority if the required performance bond is not on file or has lapsed. Bonds Express has been issuing these specialized telecom performance bonds since 1965 and maintains a high approval rate, including for carriers with complex financial histories.

What Is an NDIEC?

An NDIEC – Non-Dominant Interexchange Carrier – is a long-distance or interexchange telecommunications company that is classified as non-dominant by the CPUC. This includes long-distance carriers, switchless resellers, CLECs, and many VoIP and prepaid calling card providers.

All NDIEC registrants must register with the CPUC under California Public Utilities Code Section 1013 and maintain a continuous performance bond equal to $25,000 or 10% of intrastate revenues reported to the CPUC during the preceding calendar year – whichever is greater.

Bond Requirements & Annual Filing Deadline

  • Bond amount: $25,000 minimum (or 10% of intrastate revenues, whichever is greater)
  • Bond type: Continuous (must remain active for the life of your operating authority)
  • Annual filing deadline: Submit a copy of your executed performance bond to the CPUC Communications Division by March 31 of each year
  • Filing method: Information-Only Advice Letter to the Director of the Communications Division
  • Obligee: California Public Utilities Commission (CPUC), 505 Van Ness Avenue, Third Floor, San Francisco, CA 94102
  • One bond per Utility ID – bonds cannot be shared across multiple Utility IDs
  • Cancellation notice: 30 days written notice by certified mail to both CPUC and Principal

Pricing Breakdown

How Much Does the CPUC Telecom Performance Bond Cost?

The bond premium (what you pay) typically starts at $250–$500 per year for qualified applicants, which is 1–2% of the $25,000 bond amount. Pricing depends on your company’s financials, credit history, and years in operation. If your revenues exceed $250,000, your required bond amount will be 10% of revenues, increasing the premium accordingly.

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Bad Credit or New Carrier?

Bonds Express specializes in hard-to-place telecom bonds. New carriers and those with challenged credit histories are evaluated on a case-by-case basis. Contact us directly for a fast quote. We also issue other California utility deposit bonds for carriers and businesses with different state filing requirements.

Frequently Asked Questions

Who exactly needs the CPUC performance bond?
All CPCN, NDIEC, Interconnected VoIP, and WIR holders operating in California are required to post a continuous performance bond pursuant to CPUC Decisions D.10-09-017, D.11-09-026, and D.13-05-035.
What is the annual filing deadline?
By March 31 of each year, carriers must file a copy of their executed performance bond via an Information-Only Advice Letter with the CPUC Communications Division.
What happens if my bond lapses?
The CPUC has authority to revoke operating authority for carriers that fail to maintain the required bond. A replacement bond must be secured before the original is canceled.
What is a ‘telco bond’?
A ‘telco bond’ is an informal term for the California CPUC Telecommunications Performance Bond required of all telephone corporations and registered telecom carriers in California.
Is the $25,000 bond amount always fixed?
Not always. NDIECs with intrastate revenues exceeding $250,000 must post a bond equal to 10% of those revenues, which would exceed $25,000.
Is this the same as a California utility bond?
Not exactly. The CPUC NDIEC Telecom Performance Bond is specifically for telecommunications carriers (NDIEC, CPCN, VoIP, WIR). If you need a California utility deposit bond for gas or electric service, that is a separate bond.

Related California Telecom & Utility Bonds

BondsExpress issues all California CPUC-required bonds for telecommunications and utility companies:

Need a different California bond? View all California surety bonds.

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A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal.  The California Public Utilities Commission NDIEC Telecommunications Performance Bond holds you accountable for your business decisions.

By possessing a California Public Utilities Commission NDIEC Telecommunications Performance Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.