New York Enacts $15 Affordable Broadband Legislation Despite Pushback from ISPs

New York Enacts $15 Affordable Broadband Legislation Despite Pushback from ISPs

New York Enacts $15 Affordable Broadband Legislation Despite Pushback from ISPs


### New York’s Affordable Broadband Law: A Triumph for Digital Inclusion

In a historic ruling, New York’s Affordable Broadband Act (ABA) is scheduled to be enacted on January 15, 2025, after an extensive legal fight with broadband industry advocates. The legislation requires Internet Service Providers (ISPs) to deliver low-cost broadband options to economically disadvantaged households, representing a major advancement in tackling the digital divide. This article examines the consequences of the law, the legal path that led to its passage, and its potential effects on millions of residents in New York.

### **The Legal Struggle: A Prolonged Process**

Initially enacted in 2021, the Affordable Broadband Act necessitated ISPs to offer reasonably priced Internet plans set at $15 or $20 monthly, inclusive of all taxes and fees. However, the law encountered immediate resistance from broadband industry associations, which contended that the requirement was unconstitutional and would place unreasonable financial pressures on providers.

In 2021, a district court temporarily halted the law, ruling in favor of the ISPs. Nevertheless, the situation shifted in April 2024 when a U.S. appeals court upheld the law, overturning the previous decision. The legal triumph was confirmed in December 2024 when the U.S. Supreme Court opted not to review the broadband industry’s challenge, effectively concluding the legal dispute and clearing the path for the law’s enforcement.

This case carries broader implications for state-level governance of broadband services, particularly as federal oversight has fluctuated. The Biden administration’s attempts to restore net neutrality and classify ISPs as common carriers have encountered legal obstacles, rendering state measures like New York’s ABA and California’s net neutrality statute essential testing grounds for broadband regulation.

### **Provisions of the Law**

The Affordable Broadband Act mandates that ISPs in New York must provide:

– **$15-per-month plans** offering download speeds of a minimum of 25 Mbps.
– **$20-per-month plans** featuring download speeds of at least 200 Mbps.

All prices are required to encompass recurring taxes, fees, and equipment rental charges. Furthermore, increases in price are limited to 2% annually. The New York Public Service Commission will conduct periodic assessments of the law to ascertain if the minimum speed standards should be adjusted in light of technological advancements.

The law is applicable to all varieties of broadband providers, including wireline, fixed wireless, and satellite services. However, ISPs with fewer than 20,000 subscribers may apply for waivers if adherence would lead to “unreasonable or unsustainable financial impact.” More than 40 small ISPs had previously sought such exemptions before the law was temporarily suspended in 2021. These providers will be allowed a one-month exemption, provided they submit the necessary documentation by January 15, 2025, and must present comprehensive financial data by February 15 to request longer-term exemptions.

### **Closing the Digital Divide**

The rollout of the ABA is timely. By mid-2024, the Federal Communications Commission’s (FCC) Emergency Broadband Benefit program, which offered monthly discounts to low-income families, came to an end due to insufficient congressional funding. This situation left around 1.7 million households in New York—and 23 million across the country—without federal support for affordable Internet access.

The expiration of the FCC program highlights the necessity of state-level initiatives like the ABA. “Consumer benefit programs aiding low-income households—like the ABA—are increasingly vital to ensure that low-income New Yorkers receive the digital inclusion they deserve,” remarked New York Public Service Commission Chair Rory Christian.

### **Current Low-Income Broadband Alternatives**

Several ISPs have already instituted discounted plans for low-income families, although these offerings frequently do not meet the ABA’s standards. For instance:

– **Charter Spectrum** provides a $25-per-month plan with speeds of 50 Mbps.
– **Comcast** and **Optimum** have $15-per-month plans available.
– **Verizon** offers a low-income program that reduces the cost of certain home Internet packages to as low as $20 monthly.

The ABA will unify these offerings, guaranteeing that all eligible households receive access to affordable and dependable Internet service.

### **Compliance and Penalties**

ISPs that do not comply with the ABA may incur civil fines of up to $1,000 for each violation. The New York Public Service Commission will manage the enforcement, ensuring that providers meet the law’s stipulations. This encompasses oversight of price limits, speed criteria, and the inclusion of all charges in the advertised pricing.

### **A Wider Influence on Broadband Regulation**

New York’s triumph in rolling out the Affordable Broadband Act establishes a model for other states aiming to regulate broadband services amid a lack of strong federal oversight. It also underscores the increasing acknowledgment of Internet access as a fundamental utility, comparable to electricity and water.

While the broadband sector has historically opposed regulatory measures, the success of the ABA illustrates that states can be instrumental in promoting digital equity. As the digital economy continues to expand