ISPs angry about California law that lets renters opt out of forced payments

"When Rosenworcel proposed a federal opt-out rule last year, the FCC said it would "increase competition for communications service in these buildings by making it more profitable for competitive providers to deploy service in buildings where it is currently too expensive to serve consumers because tenants are required to take a certain provider's service." But the proposal was nixed in January 2025 by Chairman Brendan Carr, shortly after President Trump elevated Carr to the FCC's top slot."

"If a California landlord offers bulk billing and fails to comply with the new law's opt-out requirement, the landlord's tenants will have the right to "deduct the cost of the subscription to the third-party Internet service provider from the rent." The law prohibits landlords from retaliating against tenants. Bulk billing contracts are generally allowed by the FCC, except when they give a provider the exclusive right to access and serve a building. Landlords can still prevent other ISPs from installing wires in a building, though."

""While a service provider may not enter into an agreement that grants exclusive access to an MTE [multiple tenant environment] property, a landlord may still choose the providers it allows into the building, even if that means only one company provides service," the FCC says. While residents may still only have one choice for wired broadband, the California law could help fixed wireless Internet providers gain subscribers."

California enacted a law requiring landlords who offer bulk-billed internet subscriptions to provide tenants an opt-out and permitting tenants to deduct the cost of third-party ISP subscriptions from rent if landlords fail to comply. The law forbids landlords from retaliating against tenants for opting out. A prior FCC proposal to allow tenant opt-outs was floated in March 2024 by then-Chairwoman Jessica Rosenworcel but was not adopted after Chairman Brendan Carr nixed the proposal in January 2025. FCC rules generally allow bulk billing unless contracts grant exclusive access; landlords can still restrict which providers enter buildings, limiting wired choices, and the law could boost fixed wireless providers.

Read at Ars Technica