ISPs’ Low-Cost Plans Reach 95% of New York Homes: Report

WASHINGTON, Oct. 4, 2024 – New York has strategically leveraged merger conditions and partnerships with major Internet Service Providers in an effort to provide affordable broadband access to an estimated 1.7 million state households struggling to afford the service.

The New York Department of Public Service’s report issued last week revealed that Charter, Altice USA, and Verizon, which together serve more than 95% of the state’s broadband addresses, will play a vital role in addressing affordability concerns with their low-cost internet plans for households.

Central to the state’s efforts was the recent settlement with Charter Communications, which reinstated a low-income broadband plan offering 50 Megabits per second (Mbps) internet for $15 per month. This four-year program targets more than 2.7 million eligible individuals, including those participating in the National Free School Lunch Program and Supplemental Security Income. Offering coverage in 62 of New York’s 64 counties, Charter's initiative has extensive reach across the state.

Following Charter’s lead, Altice petitioned the New York Public Service Commission on Sept. 20 to align its low-income broadband program with Charter’s settlement. If approved, Altice would offer a comparable program for an additional four years.

And, while not obligated by the PSC, Verizon has rolled out its Verizon Forward service in New York, catering to low-income households. The plan provides flexible speed and price options, with rates starting at $20 per month for 300 Mbps.

“Availability and access of high-speed broadband is fundamental to ensuring one can thrive in the modern world," DPS CEO Rory Christian said in a statement. 

As federal benefits expire, New York has positioned these low-income broadband plans as a stopgap solution. This comprehensive strategy, coupled with the regular updates to the DPS report, aims to create long-term solutions for internet affordability and access in New York, as federal support expired. At its peak, one in four New York households were enrolled in the Affordable Connectivity Program to assist with the monthly cost of an internet subscription.

In 2021, New York enacted the Affordable Broadband Act, which requires ISPs to offer low-income consumers a basic service plan of 25 Mbps for $15 per month or 200 Mbps for $20 per month. The ABA has never gone into effect because of ISP-initiated litigation. The matter is now before the U.S. Supreme Court.