California Governor Gavin Newsom recently signed Assembly Bill 1414 into law, permitting renters in California apartments to opt out of bulk internet services offered by property owners. While proponents frame the measure as an affordability tool, critics warn it could undermine the bulk internet model that has expanded connectivity and competition within multifamily communities.
Industry insiders say the new opt-out option is already prompting caution among owners and operators. Some leading consultants have reportedly advised California property owners to pause bulk internet deployments until more guidance about the new law is available.
Bulk internet programs typically require 100% participation across units and are designed to serve as the backbone for building-wide services, including digital door locks and thermostat controls. Critics argue that allowing opt-outs threatens the economies of scale that help keep bulk connectivity affordable and reliable for residents.
Advocates contend that bulk services deliver discounts, reduce or eliminate upfront fees, and simplify access for tenants. Opponents counter that the opt-out option could raise costs over time, reduce competition, and invite a return to the less competitive pre-bulk era where options are more limited and prices higher.
Looking ahead, analysts say the long-term impact remains uncertain while regulators monitor for FCC input and market responses from internet service providers. California residents and property owners alike are watching how this policy unfolds, with comparisons already being drawn to other price-related trends seen in the state.
