What is a California Telephone Corporation Bond?
The Public Utilities Commission of California requires telephone corporations who wish to be licensed in the state to post a $25,000 surety bond.
Who Needs a California Telephone Corporation Bond?
As with most utilities in the state, becoming a communication service provider requires being licensed by the Public Utilities Commission of California. In order to process the application, the Commission requires the applicant to purchase and maintain a $25,000 telephone corporation bond.
Why Do I Need a California Telephone Corporation Bond?
The California telephone corporation bond ensures the protection of consumers by guaranteeing that the telephone corporation will adhere to all of the provisions of the California Public Utilities Code and all applicable decisions made by the California Utilities Code.
If the principal violates these laws or the terms of the surety agreement, any harmed parties are able to make a claim against the telephone corporation bond. Once finalized, the principal is responsible for reimbursing the surety for any damages paid or associated legal costs.
How Much Does a California Telephone Corporation Cost?
The Public Utilities Commission of California requires a $25,000 surety bond for the licensing of telephone and other communication service providers. These bonds are subject to underwriting, and the cost will vary based upon the credit rating of the principal. For well-qualified applicants, the cost may be as low as 1% or $250.
These bonds are continuous in nature, and therefore they do not require renewal after a set term.
Get Started Today!
In order to operate as a telephone service provider, you must first purchase a California telephone corporation bond. Don’t delay your application.