New York's $15 Broadband Law Takes Effect Wednesday
N.Y. to enforce law mandating $15 and $20 Internet plans for low-income residents.
Jericho Casper
WASHINGTON, Jan. 14, 2024 – Nearly four years after its passage sparked a heated legal battle with internet service providers, a New York law mandating affordable broadband access for low-income residents will finally take effect on Wednesday.
Originally enacted in April 2021, the state’s Affordable Broadband Act requires ISPs serving more than 20,000 households in New York to offer discounted broadband plans to low-income households.
The plans are specifically priced at $15 per month for 25 Megabits per second (Mbps) download speeds and $20 per month for 200 Mbps. These prices must include recurring taxes, equipment rental fees, and other usage fees, with annual price increases capped at 2%.
New York Public Service Commission Chair Rory Christian on Thursday issued an order stating that non-compliance may result in civil penalties of up to $1,000 per violation.
The law faced immediate opposition from broadband industry groups. In 2021, a district court initially sided with the industry, issuing an injunction to block the law, but New York State Attorney General Letitia James appealed the ruling. In April 2024, the Second Circuit Court of Appeals reversed the injunction, and the Supreme Court declined to review the case on Dec. 16, 2024, paving the way for the ABA to take effect.
The decision to uphold New York’s Affordable Broadband Act has far-reaching implications for state-led broadband regulation.
“The battle between New York and ISPs was an important test case for how states can regulate broadband providers when the Federal Communications Commission isn't doing so,” wrote Jon Brodkin, a reporter for Ars Technica.
Brodkin drew parallels to similar legal challenges surrounding California’s net neutrality law, which ultimately survived industry opposition and was successfully enacted, highlighting the growing role of states in protecting their residents against potential misbehavior by ISPs.
“The case law is now abundantly clear that if the FCC eliminates its authority over broadband by miscategorizing it as a Title I information service, then the states can step in," wrote Barbara van Schewick, director of Stanford Law School’s Center for Internet and Society. “They can create their own net neutrality protections, like California and others do, require affordable broadband options like New York, and institute broadband privacy protections like Maine.”
The law’s enforcement promises to provide much-needed relief for New Yorkers, particularly the 1.7 million residents who relied on the now-expired federal Affordable Connectivity Program to stay connected during the pandemic.
To address potential hardships for smaller ISPs, the law allows providers serving fewer than 20,000 households to apply for exemptions if compliance would result in “unreasonable or unsustainable financial impact.” More than 40 small ISPs sought exemptions before the law was blocked in 2021, and providers have until Feb. 15 to submit detailed financial data to qualify for longer-term exemptions.
