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

New 'PROTECT Act' Would Make North Carolina Rules Federal Law

Senator Mike Lee of Utah on Thursday introduced legislation that would impose strict new federal rules on adult sites and platforms, strongly echoing similar regulations imposed last year in North Carolina.

Meddle Blooms Fronts Latest From Grooby VR

Meddle Blooms stars in the latest release from Grooby VR, titled "How Do I Look?"

Claudia Ross Wraps Production on Elegant Angel Feature 'Octavia Loves Girls'

Elegant Angel has announced that production has wrapped on the all-girl feature, "Octavia Loves Girls," directed by Claudia Ross.

Leah Layz Makes Her WIFEY Debut

Leah Layz has made her debut for Vixen Media Group studio imprint WIFEY alongside her husband Logan and Anton Harden.

Raissa Bellini Makes Her Blacked Raw Debut

Raissa Bellini has made her debut for Vixen Media Group studio imprint Blacked Raw, alongside Hollywood Cash and Isiah Maxwell.

Ravyn Alexa Makes Her Digital Playground Debut

Ravyn Alexa has made her Digital Playground debut alongside Millie Morgan and multi-XMAs winner Zac Wild in “They Put the HO in Neighborhood.”

Skylar Snow Fronts Latest From New Sensations

Skylar Snow stars with Mighty Dee in the latest release from New Sensations.

Summer Kline Stars in Latest From Bellesa House

Summer Kline stars with Damion Dayski in the latest scene from Bellesa House.

Rachael Cavalli Leads Latest From Devil's Film

Rachael Cavalli stars with Axel Haze in the latest installment of Devil's Film series "Sugar and Creampies."

Cubbi Thompson on Turning the Page From Creator to Performer

Cubbi Thompson's signature two-tone coiffure is nearly as recognizable as the performer herself. What some might not know, however, is that the look traces back to an unlikely inspiration: eccentric Harry Potter villain Bellatrix Lestrange.

Show More