### AT&T Discontinues 5G Home Internet in New York Due to State’s Affordable Broadband Legislation
In a decision that has ignited considerable discussion, AT&T has revealed its choice to terminate its 5G home Internet service, branded as “Internet Air,” within New York. This choice is a direct response to the state’s Affordable Broadband Act, which requires Internet Service Providers (ISPs) to deliver affordable broadband options to eligible low-income households. This legislation, set to take effect in January 2025 following protracted legal disputes, has been celebrated by digital equity supporters but viewed by certain ISPs as “detrimental rate regulation.”
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### **A Detailed Look at the Affordable Broadband Act**
The Affordable Broadband Act mandates that ISPs serving more than 20,000 customers in New York provide two low-cost Internet alternatives for qualifying households:
1. **A $15/month plan** that guarantees download speeds of at least 25 Mbps.
2. **A $20/month plan** with download speeds of a minimum of 200 Mbps.
Eligibility for these plans is connected to enrollment in federal aid programs like the National School Lunch Program, Supplemental Nutrition Assistance Program (SNAP), or Medicaid. The law aims to close the digital divide by ensuring low-income families have access to economical, high-speed Internet—an essential requirement in today’s ever-evolving digital landscape.
Nevertheless, AT&T contends that the law introduces “harmful rate regulations” that render it financially unfeasible for the corporation to persist in investing in and expanding its broadband framework in New York. Consequently, the telecommunications giant has opted to retract its Internet Air service from the state, effective January 15, 2025.
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### **Understanding AT&T’s Internet Air and Its Significance**
Introduced in 2023, AT&T Internet Air is a fixed-wireless broadband service utilizing 5G technology to provide Internet connectivity. It was conceived as a long-term substitute for DSL in regions where AT&T has no plans to deploy fiber infrastructure. With a monthly fee of $60 (or $47 when bundled with qualifying mobile plans), Internet Air has been promoted as a versatile and dependable alternative for households lacking fiber access.
Nationally, the service has gained momentum, with AT&T adding 135,000 Internet Air subscribers in the latest quarter. However, New York’s Affordable Broadband Act seems to have erected a financial obstacle for the firm, prompting its exit from the state.
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### **Reasons Behind New York’s Simplified Exit**
AT&T’s choice to end Internet Air service in New York is partially driven by the state’s distinct position beyond the company’s typical wireline service realm. In contrast to its 21-state wireline territory, where AT&T provides fiber and DSL home Internet, New York has largely served as a market for AT&T’s mobile and fixed-wireless solutions. This geographic distinction has made it relatively easy for the company to halt its home Internet services in the state without affecting its central operations.
AT&T has confirmed that it will persist in offering its 4G and 5G mobile services in New York, as the Affordable Broadband Act exclusively targets home Internet services. Thus, smartphone users and other mobile clients will remain unaffected by the company’s actions.
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### **Implications for Current Customers**
For current Internet Air subscribers in New York, AT&T has laid out a transition plan:
– Customers may retain their service free of charge for a period of up to 45 days, allowing them ample time to secure alternative broadband solutions.
– Residential users will receive a “recovery kit” containing guidance on returning their Internet Air equipment.
– Business clients, however, can keep any purchased devices at no extra cost.
AT&T has committed to working closely with impacted customers throughout this transition phase to minimize interruptions.
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### **Legal and Industry Background**
Since its introduction, the Affordable Broadband Act has encountered substantial resistance from the broadband sector. In 2021, broadband lobbying organizations successfully persuaded a federal judge to halt the law, claiming it interfered with federal regulations. However, a U.S. appeals court overturned this ruling in April 2024, and the Supreme Court declined to hear the case in December 2024, effectively allowing the law to be enforced.
While the legislation has been hailed as a significant advancement toward improving broadband accessibility, it has also raised concerns regarding the financial feasibility of enforcing such requirements on ISPs. AT&T’s decision to withdraw from New York illustrates the ongoing conflict between regulatory initiatives aimed at enhancing affordability and the economic challenges faced by telecommunications companies.
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### **Wider Implications**
AT&T’s exit from New York highlights a larger challenge in the U.S. broadband sector: the need to balance affordability with the financial motivation necessary to foster infrastructure development. Although the Affordable Broadband Act seeks to address the digital divide, its execution has uncovered the intricacies of enforcing such regulations in a competitive, profit-oriented industry.
For New York residents, the absence of AT&T
