California ISPs Criticize New Law Allowing Renters to Opt Out of Forced Payments
California Governor Gavin Newsom signed a bill into law on September 30, requiring landlords to allow tenants to opt out of paying for third-party internet services. The new legislation aims to increase broadband competition in apartment buildings and was approved by the state Assembly in April with a vote of 75-0 and by the Senate last month with a vote of 31-7.
The law, which takes effect on January 1, states that landlords must allow tenants to "opt out of paying for any subscription from a third-party Internet service provider" if they choose to do so. Assemblymember Rhodesia Ransom, a Democratic lawmaker who authored the bill, said in an interview with Ars last month that the legislation is intended to give tenants more flexibility and fairness in their internet services.
"This is kind of like a first step in trying to give this industry an opportunity to just treat people fairly," Ransom said. "It's not super restrictive. We are not banning bulk billing. We're not even limiting how much money the people can make. What we're saying here with this bill is that if a tenant wants to opt out of the arrangement, they should be allowed to opt out."
The cable and real estate industries have expressed opposition to the new law, arguing that it will lead to increased costs for landlords and potentially harm the competitiveness of small internet service providers.
"This law is a solution in search of a problem," said a spokesperson for the California Cable & Telecommunications Association. "It's going to create confusion and uncertainty for both landlords and tenants."
However, supporters of the bill argue that it will promote competition and give consumers more choices when it comes to their internet services.
"The goal here is not to limit the ability of ISPs to make money," said Ransom. "The goal is to give tenants the freedom to choose how they want to pay for their internet service."
As the new law takes effect on January 1, it remains to be seen how it will impact the broadband industry in California. Landlords and tenants are expected to adapt to the changes, which could lead to increased competition among internet service providers.
The California Department of Housing and Community Development has stated that it will provide guidance and resources to landlords and tenants as they navigate the new law.
In related news, a number of cities across the country have introduced similar legislation aimed at increasing broadband competition in apartment buildings. The trend suggests that the issue may be gaining momentum nationally.
As the debate over the new law continues, one thing is clear: California's ISPs are bracing for change as they adjust to the new requirements and regulations.
*Reporting by Arstechnica.*