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 © 2024 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

Age Verification: FSC's Mike Stabile Reports from the Frontlines

Two years into the religiously-inspired crusade to ban free access to adult material in the U.S. through carefully drafted "age verification" legislation, the constant onslaught of state-by-state proposals and laws — many of them copied from each other — can be hard to follow.

Bella Rolland Toplines 'The Sex Impulse' From Sweet Sinner

Bella Rolland headlines "The Sex Impulse," the latest release from Mile High Media studio brand Sweet Sinner.

Judge Acquits Backpage Defendants of Most Charges Before 2nd Retrial

A federal judge acquitted former co-owner of Backpage.com Michael Lacey and two co-defendants on most of the counts remaining from the protracted trial launched against the website operators by the Justice Department in 2018.

Adult Time Partners With Animation Studio 3DGspot

Adult Time has signed a deal to distribute content on its streaming platform from animation studio 3DGspot.

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp this week signed into law a bill that includes provisions requiring age verification for viewing adult content in Georgia, mirroring legislation being sponsored around the country by anti-porn religious conservative activists.

Willow Ryder, Angelina Diamanti Topline 'Lesbian Neighbor Affairs'

Willow Ryder and Angelina Diamanti headline "Lesbian Neighbor Affairs," from Girlfriends Films.

Cherie DeVille Discusses Doc Johnson Collabs in Vice TV's 'Sex Before the Internet'

2023 XBIZ Performer of the Year Cherie DeVille is featured on Vice TV’s “Sex Before the Internet,” discussing her Doc Johnson celebrity strokers in the episode “Sex Toy Empire.”

SINematica Names Silvia Dellai 'Most Valuable Performer' for April

SINematica has crowned Czech-Italian star Silvia Dellai as Most Valuable Performer for the month of April, with a spotlight scene opposite Yannick Shaft and Erik Everhard.

Aylo Asks Judge to Trim Sweeping GDP-Related Lawsuit

Aylo asked a California federal judge during a hearing on Monday to drop trafficking claims from a sweeping lawsuit brought by a former GirlsDoPorn model.

California Republicans, Democrats Team Up to Advance Age Verification for Porn

Both Republicans and Democrats in the California Assembly’s Privacy and Consumer Protection Committee voted last week to move forward a version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Show More