The bill also drew opposition from the Real Estate Technology & Transformation Center (RETTC). The group’s sponsors include real estate companies and Internet providers AT&T, Comcast, and Cox. Another notable sponsor of RETTC is RealPage, which has faced claims from the US government and state attorneys general that its software distorts competition in rental housing by helping landlords collectively set prices.
“AB 1414 introduces an opt-out requirement that would fundamentally undermine the economics of bulk billing,” the RETTC said. “By fragmenting service, it could destabilize networks and reduce the benefits residents and operators rely on today.” The group claimed the bill could lead to “higher broadband costs for renters, reduced ISP investment in multifamily housing, disruption of property-wide smart technology, [and] widening of the digital divide in California.”
The RETTC said it joined with the National Apartment Association and the California Rental Housing Association to detail the groups’ concerns directly to the bill sponsors.
Wireless providers could get a boost
The California Broadband & Video Association seems to be worried about wireless providers serving buildings wired up with cable. The group’s commentary claimed that “the bill’s lack of technology neutrality also creates winners and losers, granting certain types of providers an unfair advantage over their competitors.”
Ransom said her bill may be especially helpful for wireless or satellite providers because they wouldn’t need to install wires in each building.
“This does help with market competition, and in fact some of our support came from some of the smaller Internet service providers… and because this bill is technology-neutral, it helps with not only the current technology, but any new technology that comes out,” she said.
While Ransom’s bill could help make broadband more affordable for renters, California lawmakers recently abandoned a more aggressive effort to require affordable broadband plans. Assemblymember Tasha Boerner proposed a state law that would force Internet service providers to offer $15 monthly plans to people with low incomes but tabled the bill after the Trump administration threatened to block funding for expanding broadband networks.