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

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

Pervz Debuts New Reverse Gangbang Scene

Pervz has debuted a new reverse gangbang scene for its series "Pervz Singles," titled “Polar Opposites: Four Petite Blondes vs Huge Director.”

Brazil Invites Public Input on Guidelines for New Digital Law

Brazil’s National Data Protection Authority (ANPD) is soliciting public comments to help improve interpretation and application of the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Jasmine Sherni, Blake Blossom Headline 'Dirty Talk' From Dorcel

Jasmine Sherni and Blake Blossom star in "Dirty Talk," the latest feature from Dorcel.

Scarlett Alexis, Vince Karter Front Latest From Bellesa Plus

Scarlett Alexis and three-time XMAs Male Performer of the Year Vince Karter star in the latest release from Bellesa Plus, titled “Obedience.”

Aleksa Mink Stars in Latest From HardX

Aleksa Mink stars with Isaiah Maxwell in the latest release from XEmpire studio brand HardX.

X3 Expo Unveils Euro All-Stars for Inaugural Amsterdam Edition

X3 Expo, Hollywood's premier adult entertainment expo, makes its European debut at Passenger Terminal Amsterdam this September 11-12, bringing together fans, creators, and industry insiders for the Continent’s largest assembly of adult entertainment stars, alongside a dazzling lineup of attractions spotlighting the cutting edge of modern media and pleasure tech.

2026 Pornhub Awards Nominees Announced

The list of nominees has been revealed for the eighth annual Pornhub Awards, which will be held May 27 in Los Angeles.

Andi Avalon, Madelyn May Front Latest From New Sensations

Andi Avalon and Madelyn May star in the latest release from New Sensations.

Elly Clutch Makes Her Debut as Brazzers Exclusive

Multi-XMAs winner Elly Clutch makes her debut as a Brazzers exclusive alongside Jordi El Niño Polla in the studio's latest release, titled "As If You Can Handle Elly."

Show More