In its response, Telnyx pushes for FCC to rescind unfair proposed enforcement order

WASHINGTON, D.C — In its response DOWNLOAD OFFICIAL PDF, VoIP provider Telnyx today requested the FCC to rescind its proposed fine of approximately $4.5 million under its Notice of Apparent Liability (NAL) that the FCC issued on February 4. Telnyx argues the NAL, which was the FCC’s first enforcement action under Chairman Carr, is a form of lawfare that violates multiple President Trump executive orders, relies on discredited Obama- and Biden-era interpretations of Title II that wrongly justify regulation by enforcement, and creates a dangerous precedent that would stifle industry innovation in the telecom industry and the voice AI space in particular.

“Thanks to the leadership of President Trump and the work of DOGE, the American people have finally been able to peek behind the curtain and can now see first-hand how the administrative state has been undermining American enterprise and innovation at every turn — and the FCC’s enforcement action, rubber stamping a Biden FCC investigation - is just another example of that sad phenomenon,” said Telnyx CEO David Casem.

“Telnyx is a victim of the type of unjust, regulation-by-enforcement we got used to seeing in the Biden administration, and our case is exactly the kind of lawfare the President has promised to stop. This investigation was left behind by the Biden FCC in its final days without giving Chairman Carr sufficient time to carefully review how out of alignment it was with President Trump’s policies and directives. We are confident that we fully complied with the FCC’s rules and that the FCC will reverse course when they review the facts presented in our response. We will never stop fighting to clear our name because the future of AI-powered voice communications and innovation in the tech space depends on defeating this flawed proposed enforcement order.”

In its response to the FCC, Telnyx makes six key arguments for why the FCC’s proposed enforcement order should be rescinded:

• Telnyx did not violate the FCC’s rules.
• The proposed fine violates at least two of President Trump’s executive orders: Executive Order 13892, which prohibits regulation by enforcement, by surprise, and without transparency; and Executive Order 14218, which calls for rescinding unconstitutional and improperly interpreted Chevron-era regulations.
• This case arose from a highly targeted unlawful calling campaign aimed at the FCC’s most senior decision-makers. The Due Process Clause and the FCC’s governing statutes require the recusal of any member with a personal connection to the case; therefore, the FCC must either re-vote to cure any conflict of interest or cancel the NAL.
• The proposed order is based on Biden-era legal theories that the courts and President Trump have overturned.
• This proceeding brings to light the incurable flaws of the FCC’s in-house adjudications for monetary penalties, which the Supreme Court found unconstitutional in SEC v. Jarkesy.
• The conduct of this proceeding and the issuance of the proposed order will chill the industry’s willingness to voluntarily cooperate with the FCC, which will harm the public interest.

Telnyx’s response comes the same week the FCC faced criticism from conservatives for violating Trump’s Executive Order 13892 with their NAL against Telnyx and for the FCC’s inability to identify the bad actor responsible for the calling scam that was responsible for the original investigation. Some notable figures on the right even suggested that DOGE should investigate the FCC for “defying President Trump.”

Background on the NAL

On the night of February 6, 2024, FCC senior leadership and staff began to receive calls that were obvious fake impersonations of the FCC itself, demanding that the call recipients pay the callers in gift cards to avoid jail time. The calls were made by a bad actor known as MarioCop, which immediately kicked off an investigation by Chairwoman Rosenworcel’s FCC that lasted until the end of her term. As Chairman Carr took over, the one-year statute of limitations on the FCC’s investigation was due to expire in a matter of days (February 6, 2025). Despite months of voluntary cooperation by Telnyx into the FCC’s investigation of the bad actors, the Rosenworcel-directed Enforcement Bureau shifted its investigation toward Telnyx (unbeknownst to Telnyx) in the final weeks of her tenure as Chair, on the theory that Telnyx failed to comply with the FCC’s rule for keeping bad actors off of voice networks.

Facing a deadline, the Enforcement Bureau asked Telnyx for a three-month extension of the statute of limitations (known as a tolling agreement). When the FCC could not explain why it needed more time, Telnyx declined the request. Within two days, the FCC issued a proposed fine of approximately $4.5 million against Telnyx. But Telnyx has fully complied with the rule at issue. The NAL effectively rewrites the rule to require a standard of “perfection,” which the FCC has repeatedly confirmed is not the standard.

The FCC claims that fighting unlawful robocalls is its top consumer-protection priority. In this case, the FCC spent untold taxpayer dollars to punish Telnyx for only 1,117 completed calls by a sophisticated bad actor that relied on non-public information (and an apparent FCC security breach) to intentionally target FCC personnel before Telnyx swiftly blocked the traffic and shut down the customer within 17 hours. Yet literally billions of illegal robocalls flood consumers every month and go unpunished. In line with the President’s directives and the law, the FCC should not engage in regulation by enforcement or unfair surprise in this enforcement proceeding. It should redirect its enforcement priorities towards the actual bad actors, not companies like Telnyx that have demonstrated a commitment to compliance and a track record of success.

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About Telnyx

Telnyx is a U.S.-based service provider offering cutting-edge Voice AI solutions that fuel next-generation, real-time interactions. From live transcription and sentiment analysis to advanced call routing and voice bots, our AI-powered technology helps businesses deliver richer, more personal customer experiences, all backed by our private, globally distributed IP network for unrivaled reliability and security. Alongside voice, Telnyx’s flexible IoT connectivity platform empowers organizations to harness data at scale, from sensor to cloud, enabling transformative insights for a smarter, always-connected future. Telnyx also offers seamless SIP Trunking for Microsoft Teams, Object Storage APIs for secure and scalable data management, browser-based WebRTC solutions, and developer-friendly Programmable Voice APIs. By unifying security, reliability, and flexibility under one roof, Telnyx empowers businesses to innovate, scale, and deliver unforgettable experiences in every interaction. Learn more at telnyx.com.