isps angry about california law that lets California has enacted a new law that allows renters to opt out of mandatory Internet service payments, a move that has drawn ire from Internet service providers (ISPs) and the real estate sector.
isps angry about california law that lets
Overview of the New Legislation
On October 1, 2025, California Governor Gavin Newsom signed into law a bill designed to enhance broadband competition within apartment complexes. The legislation, which will take effect on January 1, 2026, mandates that landlords must allow tenants to “opt out of paying for any subscription from a third-party Internet service provider.” This includes services provided through bulk-billing arrangements, which have been a common practice in many multi-unit dwellings.
The bill received overwhelming support in the California legislature, passing the Assembly with a unanimous 75–0 vote in April and the Senate with a 30–7 vote last month. This bipartisan backing underscores the growing recognition of the need for more equitable access to Internet services, particularly in densely populated residential areas.
Key Provisions of the Law
The legislation specifically targets bulk-billing arrangements, which often require tenants to pay for Internet services they may not want or need. Under the new law, tenants will have the right to decline these arrangements, thereby allowing them to choose their preferred Internet service provider (ISP) without being forced into a contract that may not meet their needs.
Impact on Tenants
For many renters, this law represents a significant shift in how Internet services are accessed and paid for in rental properties. The ability to opt out of mandatory payments for unwanted services could lead to:
- Increased Choice: Tenants will have the freedom to select ISPs that better suit their needs, potentially leading to improved service quality and pricing.
- Cost Savings: By opting out of bulk-billing arrangements, tenants may save money by choosing plans that align more closely with their actual usage and preferences.
- Enhanced Competition: The law is expected to stimulate competition among ISPs, as they will now have to compete for individual tenants rather than relying on bulk contracts with landlords.
Reactions from Stakeholders
The new law has elicited a range of responses from various stakeholders, including lawmakers, tenant advocates, landlords, and ISPs.
Support from Lawmakers and Advocates
Assemblymember Rhodesia Ransom, a Democratic lawmaker and the bill’s author, expressed optimism about the legislation’s potential impact. “This is kind of like a first step in trying to give this industry an opportunity to just treat people fairly,” Ransom stated. She emphasized that the law does not impose restrictions on bulk billing or limit the profits landlords can make from such arrangements. Instead, it simply empowers tenants to make their own choices regarding Internet service.
Tenant advocacy groups have also lauded the bill, viewing it as a necessary measure to protect renters’ rights. Many advocates argue that the existing bulk-billing practices often lead to inflated costs and subpar service, disproportionately affecting low-income renters who may have limited options.
Opposition from ISPs and Landlords
In contrast, the cable and real estate industries have voiced strong opposition to the new law. ISPs argue that bulk-billing arrangements can provide cost-effective solutions for tenants, particularly in multi-unit dwellings where negotiating individual contracts may be cumbersome and inefficient.
Landlords have also expressed concerns that the law could disrupt existing agreements with ISPs, potentially leading to increased costs for property owners. They argue that bulk-billing arrangements often allow them to offer competitive pricing for Internet services, which may be jeopardized by the new legislation.
Broader Implications for Broadband Access
The passage of this law is part of a broader trend aimed at improving broadband access and competition across the United States. As the demand for reliable Internet services continues to grow, particularly in the wake of the COVID-19 pandemic, many states are exploring legislative measures to enhance consumer choice and reduce costs.
National Context
California’s new law aligns with similar initiatives in other states that seek to address the challenges posed by monopolistic practices in the broadband market. For instance, some states have implemented regulations requiring ISPs to disclose pricing and service options more transparently, while others have taken steps to promote municipal broadband projects as alternatives to traditional ISPs.
As more states consider similar legislation, the potential for a nationwide shift in how Internet services are delivered and billed may be on the horizon. This could lead to a more competitive landscape where consumers have greater control over their Internet choices.
Potential Challenges Ahead
While the new law is a significant step forward for tenant rights and broadband competition, challenges remain. Implementing the law effectively will require collaboration between landlords, ISPs, and regulatory bodies to ensure that tenants are informed of their rights and options.
Additionally, there may be legal challenges from ISPs and landlords who argue that the law infringes on their contractual agreements. The outcome of such challenges could shape the future of broadband access and competition in California and beyond.
Conclusion
California’s new law allowing renters to opt out of mandatory Internet service payments marks a pivotal moment in the ongoing battle for equitable broadband access. By empowering tenants to make their own choices regarding Internet services, the legislation aims to foster competition and improve service quality in a market that has long been dominated by a few major players.
As the law takes effect on January 1, 2026, it will be crucial for stakeholders to navigate the implications of this legislation carefully. The reactions from ISPs and landlords will likely shape the discourse around broadband access in the coming years, making it essential for advocates and lawmakers to remain vigilant in their efforts to protect tenant rights and promote competition.
Source: Original report
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Last Modified: October 16, 2025 at 12:37 am
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