California Moves One Step Closer to Cable Deregulation

SACRAMENTO, Calif. — Adult content providers may soon have more cable distribution options after a unanimous vote in the California Assembly, which passed legislation that could dramatically reshape the marketplace for the state’s cable providers.

The 70-0 vote marked a victory for telecommunications companies like AT&T and Verizon, which had lobbied the Legislature to drop so-called franchise deals that effectively allow a cable company to lock up a given geographic area under the existing legislative regime.

Under the proposed bill, which now will go to the Senate, telecom companies will be able to bypass local governments and apply directly to the state for a cable license.

Assembly Speaker Fabian Nunez, who sponsored the bill, said that the law is about creating a “level playing field.”

In support of the bill, AT&T commissioned a study by UC Berkeley professor Yale Braunstein, who predicted that consumers in the state could realize nearly $1 billion in savings if telecoms entered the market.

According to California AT&T President Ken McNeely, most of the savings would come from consumers taking advantage of so-called bundling options, which would allow them to purchase cable, Internet and phone services from the same provider.

However, cable companies have complained that the bill would give too much leverage to telecom companies, likening the bill to California’s controversial energy deregulation plan and the subsequent energy crisis.

“There we had brownouts, and we realized that it was not entirely a competent job of trying to deregulate the energy industry,” said Dennis Mangers, president of the California Cable and Telecommunications Association. “And if we're not very careful with this bill, we could screw up another whole field of important public policy, in this case telecommunications and video.”

Meanwhile, consumer advocacy groups also have sounded the alarm in response to the bill, fearing that telecom companies would be able to pick and choose the very best neighborhoods while saddling cable companies with costly infrastructure to service only poorer communities.

“A bipartisan, late-night deregulation effort should warrant serious concern by the public because it was not crafted for consumers but by, for and of the telecom giants," Jamie Court, president of the Foundation for Taxpayer and Consumer Rights, said.

But Nunez was adamant that competition would be a boon for consumers.

“At the end of the day, consumers will keep some of their hard-earned dollars because we have created competition in a market where there was none," Nunez said.

If and when the bill passes the Senate, it will need approval by Gov. Arnold Schwarzenegger, who has not yet taken a position on the proposed law.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Gigi Dior Performs Her 1st DP for Elegant Angel

Gigi Dior performs her first DP alongside multi-XMA winners Christian Clay and Vince Karter in the first scene from Elegant Angel's "MILF Performers of the Year 2026."

Violet Myers Leads Latest From Digital Playground

Violet Myers stars with Lucas Frost in the latest limited series from Digital Playground, titled “The Double Agents.”

Holly Randall Agency, Stripchat to Collab on New Feature

Holly Randall Agency and Stripchat have announced their third collaboration.

Tiffani Time Makes Her Girlfriends Films Debut

Tiffani Time has made her Girlfriends Films debut opposite Penelope Snaps in “Bad Lesbians 22: Scene 1.”

Sofia Smith, Ria Sunn & Lexi Star Topline Latest Volume of Angelo Godshack's 'Angels of Hardcore'

Sofia Smith, Ria Sunn, and Lexi Star headline the fifth volume of director Angelo Godshack’s “Angels of Hardcore,” from Evil Angel.

Isa Bella, Scarlette Moon Headline 'Married to Him, Craving Her'

Isa Bella and Scarlette Moon topline the latest release from Girlfriends Films, titled "Married to Him, Craving Her."

Girlsway Debuts Casey Calvert Drama 'Straight Girls'

Girlsway has released the new drama from multi-XMAs winner Casey Calvert, titled “Straight Girls.”

Juliana Marie, Lana Gee Front Latest Release From TeamSkeet

Juliana Marie stars with Lana Gee and Danny Mountain in the latest scene from TeamSkeet’s “Singles” series, titled “Dad’s Safety Lessons: I Caught Them Riding a Dildo Bike.”

Milena Ray Performs Her 1st DVP for Immoral Productions

Milena Ray performs her first DVP alongside Matt Bird, Terry Banks, and "Porno Dan" Leal in the latest trilogy from Immoral Productions.

Richard Mann Drops New Evil Angel Scene With Sona Bella

Sona Bella stars with director Richard Mann in a new release from Evil Angel.

Show More