California Telephone Corporation Bond: $25,000 Performance Bond

A telephone corporation bond is a $25,000 performance surety bond that many providers must maintain to operate legally in California. The bond guarantees your company will comply with CPUC regulations (including reporting, fees, and service quality). 

If you violate the rules and cause a financial loss, the surety may pay valid claims up to the bond amount, and your company must reimburse the surety.

• Obligee (who requires it): California Public Utilities Commission (CPUC)
• Bond amount: $25,000
• Type: Performance surety bond
• Purpose: Protect the public and the state by ensuring compliance with CPUC requirements

For official details, see the CPUC’s Performance Bond Requirements page.

You may need the telephone corporation performance bond if you are any of the following operating in California:

• Competitive or incumbent local exchange carriers (LECs)
• Interexchange carriers (IXCs) / long-distance providers
• VoIP or other telephone service providers operating under the CPUC jurisdiction

If you’re unsure whether you’re covered, check your operating authority or contact CPUC. Many providers are required to keep this bond active at all times as a condition of authority.

You don’t pay the full $25,000 amount. Instead, you’ll pay a small annual premium based on underwriting (primarily personal and business credit, financials, and experience). Typical ranges:

• Good credit: ~1–3% of the bond amount ($250 – $750 per year)
• Standard credit: ~3–5% ($750 – $1,250 per year)
• Challenged credit: May be higher, with options available

Most applicants can complete a short application and get a same-day decision. Multi-year discounts are often available.

• Apply online: Submit your business details and contact info.
• Underwriting review: Quick review of credit/financials; additional documents only if needed.
• Instant quote & payment: Lock in your premium.
• Receive your bond: We’ll issue the bond and any required forms.
• File with CPUC: Keep your bond active and on file to maintain your operating authority.

• Keep the bond continuous. Lapses can lead to penalties or suspension of authority.
• Update company info. Report name, address, or ownership changes so your bond stays valid.
• Meet reporting deadlines. CPUC reporting and fee schedules must be followed to avoid claims.
• Monitor service quality. Compliance with service standards and customer rules protects you from complaints and claim risk.
• Renew annually. Most bonds renew each year; pay your premium before the renewal date.

Yes. If the CPUC or a harmed party alleges a financial loss tied to your company’s failure to follow CPUC rules (for example, unpaid fees or non-performance), they can pursue a claim up to $25,000. 

The surety investigates, and if the claim is valid, the surety pays up front and then seeks reimbursement from your company. The best defense is proactive compliance and quick resolution of CPUC notices.

These bonds are often confused:

• Telephone Corporation Bond: Required by CPUC for entities providing regulated telephone services in CA; $25,000 performance bond.
• Telemarketing / Telephone Solicitation Bonds: Required under separate statutes for companies making sales calls; amounts and agencies differ.

If you provide telephone service, you likely need the telephone corporation performance bond. If you sell by phone, you may need a telemarketing/solicitor bond. Some businesses require both, depending on their operations.