Since the termination of the Affordable Connectivity Program (ACP) on June 4, 2024, some states have taken broadband affordability into their own hands. This year alone, multiple state legislatures have introduced legislation to ensure broadband affordability. New York, however, has been working on increasing broadband affordability since 2021 and is starting to see the fruit of its labor.
New York’s Affordable Broadband Act (ABA) officially took effect on January 15th, 2025. The law requires internet service providers (ISPs) with over 20,000 customers in their state to offer plans priced at $15 per month for download speeds of 25 Mbps or $20 per month for download speeds of 200 Mbps to eligible low-income households. New York is the first state in the nation to mandate that broadband providers offer plans as low as $15 a month. Given that ACP supported 1.7 million New York households in affording their internet subscription, the enforcement is timely – the law is projected to benefit an estimated 7 million New Yorkers.
How The Affordable Broadband Act Became Law
The New York Affordable Broadband Act (ABA) was first introduced as part of the New York state budget for 2021. Since then, it has encountered a series of legal challenges. Two months after the law passed, ISPs sued the state of New York, and a district court issued a preliminary injunction against enforcement of the law, arguing that the state overstepped its authority in regulating broadband rates.
The state of New York subsequently challenged the ruling in an appellate court. In April 2024, the 2nd U.S. Circuit Court of Appeals upheld the law, overturning the 2021 lower court ruling that had previously blocked its implementation. There has since been an appeal and more legal pushback from ISPs, but so far, the U.S. Supreme Court has declined to hear the case, effectively allowing the law to take effect.
Providers React and Adapt
In response to the passing of New York’s Affordable Broadband Act, only one provider, AT&T, has discontinued its 5G home internet service in New York. Arguing that New York’s Affordable Broadband Act enforcement makes it “uneconomical for AT&T to invest in and expand our broadband infrastructure in the state,” AT&T gave customers 45 days to transition out without charge.AT&T’s partial exit from New York doesn’t indicate that ISPs are fleeing the state. The company still provides mobile services, and the move only affected its 5G home Internet offering, which was available in just ten municipalities. New York State has over 1,525 municipalities. The company will continue to provide mobile service in New York State.
Other ISPs already comply with the law or plan to adapt. For example, Spectrum created a program called Spectrum Internet Assist in 2016, which offered download speeds of up to 50 Mbps for $25 per month, and they later introduced the Internet Advantage plan with the option to upgrade to 100 Mbps for an additional $5 per month to qualifying customers. However, in response to New York’s Affordable Broadband Act passing, Spectrum has created a new internet service plan in New York State, offering a plan priced at $15 per month for download speeds of 50 Mbps to eligible low-income households. And some providers already had plans, like Comcast’s Internet Essentials plan, offering 75/10 Mbps internet services for $14.95 a month. Information on ISPs in compliance and those who have requested an exemption can be found online.
Potential Widespread Effect
New York’s big win has inspired other states interested in proposing similar laws for their constituents. Massachusetts State Senator Pavel Payone has filed a bill that seeks to implement a law similar to New York’s Affordable Broadband Act. California recently joined the affordable broadband wave when Assemblywoman Tasha Boerner introduced Assembly Bill 353, “mandating that internet service providers make affordable home internet plans available to California residents.” Vermont joined this movement in January when State Rep. Christopher Morrow introduced a low-cost broadband Bill, “requiring Internet service providers to offer low-cost broadband plans to eligible low-income households. The proposal would cap prices at $15 per month for speeds of at least 25 Megabits per second (Mbps) and $20 for 200 Mbps, including all taxes and fees, and bundle services are not allowed.”
NDIA and our partners will continue monitoring and elevating innovative models for how states can address broadband affordability, so stay tuned.