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 © 2025 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

Erika Lust Reflects on Vanguard Legacy and the Right to Pleasure

Erika Lust has spent two decades defying assumptions about what porn can be. The Barcelona-based filmmaker and studio head has built a global reputation on a simple premise: that sex onscreen should feel human, ethical and emotionally resonant.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

Tiffani Time Featured in Latest From Kink.com

Tiffani Time stars with Pierce Paris in an '80s-themed scene titled “Let’s Get Physical.”

Connie Perignon Fronts Latest From Brazzers

Connie Perignon stars with Will Pounder in the latest release from Brazzers, titled "Angry Café Lay."

Avery Lust, Drake Von & Cherie DeVille Front Latest From TransAngels

Avery Lust, Drake Von, and multi-XMAs winner Cherie DeVille star in the latest release from TransAngels, titled “The Jizz Off.”

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

SCOTUS Won't Hear Appeal of NYC Adult Store Zoning Law

The U.S. Supreme Court has declined to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Eva Angelina, Angel Youngs & Rissa May Star in Latest From Deeper

Eva Angelina, Angel Youngs, and Rissa May star with Chocolate Rod in the latest release from Vixen Media Group studio imprint Deeper, titled “Strip Search.”

Phoenix Marie Leads Latest From MILFY

Phoenix Marie stars with director/performer Manuel Ferrara in a new airtight scene from Vixen Media Group (VMG) studio imprint MILFY.

Matthew Meier Talks Confidence, Chemistry and Acclaimed Craft

Matthew Meier is riding high. At the 2025 Euro XMAs, he not only took home a Best Sex Scene trophy for the second year in a row, but was also crowned Male Performer of the Year.

Show More