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

Kasey Kei, Emma Rosie Star in Latest From Evil Angel

Kasey Kei and Emma Rosie star in the latest release from Evil Angel, directed by Joey Silvera.

Ana Foxxx Stars in Latest From Raunch

Ana Foxxx stars with former XMAs Male Performer of the Year Isiah Maxwell in the latest release from Adult Time studio brand Raunch.

Gender X Debuts Latest Volume of Jim Powers' 'Trans Honey Trap'

Gender X Films has debuted the fifth volume of director Jim Powers' "Trans Honey Trap" series.

Krystal Sparks, Sugar Milf Front Latest From Pervz

Krystal Sparks and Sugar Milf star with Arin Jones in the latest release from Pervz series PervTherapy.

Melissa Stratton, Indica Flower Front Latest From Reality Kings

Melissa Stratton and Indica Flower star with JMac in the latest release from Reality Kings, titled “Dirty Dish.”

Brazil Sets Enforcement Timeline for New AV Rules

Brazil’s National Data Protection Authority (ANPD) on Friday published a timeline outlining planned steps for monitoring and enforcing age verification under the country’s Digital Statute for Children and Adolescents (Digital ECA), which took effect Tuesday.

Kitty Quinn, Nata Gold Star in Latest From MixedX

Kitty Quinn and Nata Gold star in the latest release from MixedX, titled “The Interview.”

Utah Governor Signs 'Porn Tax' and VPN Rule Into Law

Governor Spencer Cox on Friday signed into law a bill to tax adult websites and make them liable if minors circumvent geolocation.

WIFEY Celebrates 1st Anniversary With Return of Tiffani Time

Vixen Media Group studio imprint WIFEY is marking its first anniversary with the return of Tiffani Time in a new scene alongside her husband Ben, Isiah Maxwell, and Hollywood Cash.

Cherry Candle, Scarlet Skies Headline Latest 'Lesbian Seductions'

Cherry Candle and Scarlet Skies topline the 82nd volume of “Lesbian Seductions” from Girlfriends Films.

Show More