New York Affordable Broadband Act

AT&T kills home Internet service in NY over law requiring $15 or $20 plans

AT&T has stopped offering its 5G home Internet service in New York instead of complying with a new state law that requires ISPs to offer $15 or $20 plans to people with low incomes.

The decision was reported yesterday by CNET and confirmed by AT&T in a statement provided to Ars today. “While we are committed to providing reliable and affordable Internet service to customers across the country, New York’s broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state,” AT&T said. “As a result, effective January 15, 2025, we will no longer be able to offer AT&T Internet Air, our fixed-wireless Internet service, to New York customers.”

New York started enforcing its Affordable Broadband Act yesterday after a legal battle of nearly four years. Broadband lobby groups convinced a federal judge to block the law in 2021, but a US appeals court reversed the ruling in April 2024, and the Supreme Court decided not to hear the case last month.

The law requires ISPs with over 20,000 customers in New York to offer $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds. The plans only have to be offered to households that meet income eligibility requirements, such as qualifying for the National School Lunch Program, Supplemental Nutrition Assistance Program, or Medicaid.

AT&T’s Internet Air was launched in some areas in 2023 and is now available in nearly every US state. The standard price for Internet Air is $60 a month plus taxes and fees, or $47 when bundled with an eligible mobile service. Nationwide, AT&T said it added 135,000 Internet Air customers in the most recent quarter.

New York starts enforcing $15 broadband law that ISPs tried to kill

New York Affordable Broadband Act, Policy / Paul Patrick / January 13, 2025

1.7 million New York households lost FCC discount

The order said quick implementation of the law is important because of “developments at the federal level impacting the affordability of broadband service.” About 1.7 million New York households, and 23 million nationwide, used to receive a monthly discount through an FCC program that expired in mid-2024 after Congress failed to provide more funding.

“For this reason, consumer benefit programs assisting low-income households—such as the ABA—are even more critical to ensure that the digital divide for low-income New Yorkers is being addressed,” the New York order said.

New York ISPs can obtain an exemption from the low-cost broadband law if they “provide service to no more than 20,000 households and the Commission determines that compliance with such requirements would result in ‘unreasonable or unsustainable financial impact on the broadband service provider,'” the order said.

Over 40 small ISPs filed for exemptions in 2021 before the law was blocked by a judge. Those ISPs and potentially others will be given one-month exemptions if they file paperwork by Wednesday stating that they meet the subscriber threshold. ISPs must submit detailed financial information by February 15 to obtain longer-term exemptions.

“All other ISPs (i.e., those with more than 20,000 subscribers) must comply with the ABA by January 15, 2025,” the order said. Failure to comply can be punished with civil penalties of up to $1,000 per violation. The law applies to wireline, fixed wireless, and satellite providers.

Charter Spectrum currently advertises a $25-per-month plan with 50Mbps speeds for low-income households. Comcast and Optimum have $15 plans. Verizon has a low-income program reducing the cost of some home Internet plans to as low as $20 a month.

Disclosure: The Advance/Newhouse Partnership, which owns 12.3 percent of Charter, is part of Advance Publications, which also owns Ars Technica parent Condé Nast.

New York starts enforcing $15 broadband law that ISPs tried to kill Read More »