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                                        August 27, 2012


Hon. Edmund G. Brown, Jr.
Governor, State of California
State Capitol
Sacramento, CA 95184

Dear Governor Brown,

We are writing to urge you to sign SB 1161, to continue the state’s current policy – first
enunciated by the Public Utilities Commission in 2005 -- not to regulate Voice over Internet
Protocol (VOIP) services or other Internet Protocol-based communications.

Vastly more affordable and efficient than the traditional phone network because of their reliance
on the open architecture of the Internet, VoIP and other IP-based technologies are dramatically
reducing capital investment requirements and lowering barriers to market entry in the
communications sector. Because of the hard work of entrepreneurs, dozens of VoIP companies
in California are today delivering compelling new services. A sector formerly based largely on
monopoly has been replaced by a flourishing, competitive ecosystem characterized by rapid
innovation.

VoIP has delivered a wide array of choices and benefits for consumers, including lower prices or
free services like video calls, enabling consumers to connect affordably with family and friends
in other states or countries.

The new products and companies enabled by these technologies have created California jobs.
The latest job creator is the apps economy, generated by the industry that creates new products,
programs and services for your mobile devices. In the past four years, this industry – which did
not exist in 2006 – has created over 110,000 new jobs in this state.

Entrepreneurs who innovate and challenge the conventional way of doing things always face a
big challenge. When the regulatory climate involves long, drawn-out PUC proceedings whose
outcome is highly uncertain, the task of convincing investors to risk funding a new idea becomes
immeasurably more difficult.

SB 1161 will preserve California’s leadership in consumer protection and privacy, while
providing the certainty needed to sustain investment, job growth and California’s economic
leadership in this important sector.

We appreciate your attention to this issue and urge you to promptly sign this important
legislation into law.
John Chambers                 John Doerr
Co-Chair, Executive Council   Co-Chair, Executive Council
TechNet                       TechNet
Chairman & CEO                Partner
Cisco                         Kleiner Perkins Caufield Byers




Rey Ramsey                    Tony Bates
President & CEO               President
TechNet                       Skype Division of Microsoft




Bryan Martin                  Rich Foreman
Chairman & CEO                Chief Executive Officer
8x8, Inc.                     Apptology




Robert Farnsworth             Marc Lefar
Chief Executive Officer       Chief Executive Officer
Sonnet Technologies           Vonage




Randy Kremlacek               Don Means
President                     Chief Executive Officer
TeleDynamic Communications    Digital Village
Monty Ferdowsi                                  Eric Stang
President & CEO                                 Chief Executive Officer
Broadcore                                       Ooma




Craig Jerabeck                                  Mark Swanson
President & CEO                                 CEO
5LINX & Globalinx Enterprise                    Telovations, Inc




Asghar Ghassemy                                 Armen Martirosyan
CEO                                             CEO
Univoip, Inc                                    BluIP




cc:    Gareth Elliott, Legislative Affairs Secretary
       Nancy McFadden, Executive Secretary for Legislation, Appointments & Policy
       Michael Rossi, Senior Advisor for Jobs and Business Development
       Senator Alex Padilla

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Ceo letter to governor in support of sb 1161

  • 1.     August 27, 2012 Hon. Edmund G. Brown, Jr. Governor, State of California State Capitol Sacramento, CA 95184 Dear Governor Brown, We are writing to urge you to sign SB 1161, to continue the state’s current policy – first enunciated by the Public Utilities Commission in 2005 -- not to regulate Voice over Internet Protocol (VOIP) services or other Internet Protocol-based communications. Vastly more affordable and efficient than the traditional phone network because of their reliance on the open architecture of the Internet, VoIP and other IP-based technologies are dramatically reducing capital investment requirements and lowering barriers to market entry in the communications sector. Because of the hard work of entrepreneurs, dozens of VoIP companies in California are today delivering compelling new services. A sector formerly based largely on monopoly has been replaced by a flourishing, competitive ecosystem characterized by rapid innovation. VoIP has delivered a wide array of choices and benefits for consumers, including lower prices or free services like video calls, enabling consumers to connect affordably with family and friends in other states or countries. The new products and companies enabled by these technologies have created California jobs. The latest job creator is the apps economy, generated by the industry that creates new products, programs and services for your mobile devices. In the past four years, this industry – which did not exist in 2006 – has created over 110,000 new jobs in this state. Entrepreneurs who innovate and challenge the conventional way of doing things always face a big challenge. When the regulatory climate involves long, drawn-out PUC proceedings whose outcome is highly uncertain, the task of convincing investors to risk funding a new idea becomes immeasurably more difficult. SB 1161 will preserve California’s leadership in consumer protection and privacy, while providing the certainty needed to sustain investment, job growth and California’s economic leadership in this important sector. We appreciate your attention to this issue and urge you to promptly sign this important legislation into law.
  • 2. John Chambers John Doerr Co-Chair, Executive Council Co-Chair, Executive Council TechNet TechNet Chairman & CEO Partner Cisco Kleiner Perkins Caufield Byers Rey Ramsey Tony Bates President & CEO President TechNet Skype Division of Microsoft Bryan Martin Rich Foreman Chairman & CEO Chief Executive Officer 8x8, Inc. Apptology Robert Farnsworth Marc Lefar Chief Executive Officer Chief Executive Officer Sonnet Technologies Vonage Randy Kremlacek Don Means President Chief Executive Officer TeleDynamic Communications Digital Village
  • 3. Monty Ferdowsi Eric Stang President & CEO Chief Executive Officer Broadcore Ooma Craig Jerabeck Mark Swanson President & CEO CEO 5LINX & Globalinx Enterprise Telovations, Inc Asghar Ghassemy Armen Martirosyan CEO CEO Univoip, Inc BluIP cc: Gareth Elliott, Legislative Affairs Secretary Nancy McFadden, Executive Secretary for Legislation, Appointments & Policy Michael Rossi, Senior Advisor for Jobs and Business Development Senator Alex Padilla