New York Affordable Broadband Act

“To broadband ISPs and their friends complaining about the New York law and proposed Massachusetts laws mandating a low-income broadband service offering: you asked for complete deregulation at the federal level and you got it. This is the consequence,” Gigi Sohn, executive director of the American Association for Public Broadband, wrote today.

Sohn called on ISPs to join with consumer advocates to support a federal law guaranteeing “limited but meaningful oversight over broadband… Until then, my colleagues and I will go to every state that will listen to ensure that Internet users are protected from anticompetitive and anticonsumer practices.”

AT&T exit has limited significance

AT&T’s partial exit from New York likely doesn’t indicate that there will be a rush of ISPs fleeing the state. AT&T still offers mobile service in New York, and it only offered the 5G home Internet plan in 10 cities and towns. AT&T would have a much more difficult time pulling home Internet service out of the 21 states where it offers wired Internet service.

The lobby groups that tried to overturn the state law are the New York State Telecommunications Association, CTIA-The Wireless Association, NTCA-The Rural Broadband Association, USTelecom, ACA Connects-America’s Communications Association, and the Satellite Broadcasting and Communications Association.

The groups convinced a federal judge to block the New York law in 2021, but that judge’s ruling was reversed by the US Court of Appeals for the 2nd Circuit in April 2024. Appeals court judges rejected arguments that the New York law was preempted by federal rules, saying that “a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority.”

The FCC lacked authority over broadband after the 2017 repeal of net neutrality rules and related common-carrier regulations. The Biden-era FCC voted to restore that authority but lost a court case brought by USTelecom and the Ohio Telecom Association.