California lawmakers are evaluating Assembly Bill 1414, a consumer-protection measure that would require housing providers and associations to permit residents to opt out of broadband subscriptions bundled in bulk agreements.
Bulk billing is a common model in multifamily housing where an owner contracts with an ISP to deliver internet to an entire community at a reduced per-unit rate, usually with move-in internet ready and without per-unit deposits or credit checks. The model has been shown to lower costs and simplify access for residents.
Supporters say bulk billing improves affordability and access; however, critics warn that forcing opt-outs could undermine the economics of bulk billing, discourage network investment, and raise costs for renters—especially in affordable housing, student housing, and seniors housing.
Many in the industry note that the always-on connectivity required for smart-building features—such as access controls, leak detection, and energy management—relies on a stable, community-wide network. An opt-out framework could fragment service, degrade performance, and jeopardize safety and sustainability goals.
On the federal level, the FCC has long treated bulk billing as beneficial to consumers. The agency endorsed bulk billing in key rulings, including the 2010 Second Exclusivity Order (MB Docket 07-51) and subsequent reviews, arguing that bulk arrangements help lower prices and expand access. In 2021 and 2024, FCC actions further acknowledged bulk billing’s role in connecting low-income, student, and senior residents.
Advocacy groups such as the Real Estate Technology and Transformation Center (RETTC), the National Apartment Association (NAA), and the California Rental Housing Association (CalRHA) have pushed back against AB 1414, warning that it could raise rents and widen the digital divide. The coalition has issued a Bulk Billing Advocacy Toolkit to help educate policymakers and the public about the model’s nationwide benefits.
Looking ahead, supporters and opponents alike expect AB 1414 to advance through the legislature, with momentum aided by limited visible opposition. Proponents argue the bill aligns with consumer-protection goals, while opponents urge lawmakers to consider the potential harm to renters’ connectivity and California’s broader digital equity objectives. Public commentary and outreach to policymakers are encouraged to ensure decision-makers understand this complex issue.
