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

Dasha Dime Makes Her TransAngels Debut

Dasha Dime has made her TransAngels debut opposite Eris Jolie in the studio’s latest release, titled “Bimbo Summit.”

Zara Makes Her Blacked Raw Debut

Zara has made her debut for Vixen Media Group studio imprint Blacked Raw, alongside Hollywood Cash.

Angela White Returns to Jules Jordan

Angela White returns to Jules Jordan Video alongside Victor Ray in "The Battle for Sexual Supremacy."

Violet Voss on Parlaying Her Fetish Roots Into a Breakout Year

The term “raven-haired beauty” may have become somewhat of a cliché, but every now and then, a star comes along who truly fits the bill. Performer and fetish creator Violet Voss is just such a presence.

Adult Time Drops Latest Installment of Jim Powers' 'MILF Overload'

Adult Time has released the latest installment of director Jim Powers' series "MILF Overload."

Aubrey Kate, Charlotte Sins Star in New Transfixed Release

Aubrey Kate and Charlotte Sins star in the latest release from Transfixed, titled "Saved by the Bolster."

Connie Perignon, Angel Youngs Lead Latest From Jules Jordan

Connie Perignon and Angel Youngs star in the latest release from Jules Jordan.

TTS Opens New Los Angeles Testing Location

Talent Testing Service (TTS) has opened a new Hollywood location in Los Angeles.

Kasey Kei, Emma Rosie Topline Joey Silvera's 'Trans-Active 34'

Kasey Kei and Emma Rosie headline director Joey Silvera’s “Trans-Active 34” from Evil Angel.

Show More