Supreme Court Rejects ISPs’ Challenge to New York’s $15 Broadband Legislation

Supreme Court Rejects ISPs' Challenge to New York's $15 Broadband Legislation

Supreme Court Rejects ISPs’ Challenge to New York’s $15 Broadband Legislation


# **Supreme Court Affirms New York’s $15 Broadband Legislation Despite AT&T’s Withdrawal**

The Supreme Court has again dismissed a challenge from the telecommunications sector regarding New York’s $15 broadband law, affirming the state’s authority to oversee Internet service providers (ISPs). This ruling occurs in the wake of AT&T’s decision to discontinue its 5G home Internet service in New York, a maneuver that industry lobbyists anticipated would influence the court. Nevertheless, the justices were unyielding, upholding the law and potentially setting a precedent for similar policies in other states.

## **Overview of New York’s Broadband Law**

New York’s broadband legislation stipulates that ISPs with more than 20,000 customers in the state are required to provide affordable Internet options for low-income households. The law mandates providers to offer:
– A **$15 per month plan** with a minimum of **25 Mbps download speeds**.
– A **$20 per month plan** ensuring at least **200 Mbps download speeds**.

These plans are tailored for households that meet income eligibility criteria, guaranteeing that economically disadvantaged families can access reasonably priced Internet.

## **Supreme Court’s Consistent Dismissal of Industry Challenges**

The Supreme Court initially refused to entertain the telecom industry’s challenge in **December 2024**, effectively supporting a lower court’s decision favorable to New York. Following this setback, broadband industry groups attempted to repeal the law again by submitting a **supplemental brief** in January 2025. They contended that AT&T’s exit from the New York market indicated that the law was impractical and would compel providers to incur losses.

However, in a **list of orders published on February 24, 2025**, the Supreme Court once more turned down the industry’s plea for a rehearing—this time offering no commentary.

## **AT&T’s Withdrawal and Its Minimal Effect**

Instead of adhering to the law, AT&T opted to **completely cease its 5G home Internet services in New York**. This decision was perceived as a tactic to pressure the judiciary into reassessing the law. Nonetheless, the Supreme Court’s reluctance to interfere implies that such strategies may be ineffective.

It is crucial to recognize that AT&T’s departure from New York is **not a total exit from the state**. The company continues to deliver **mobile services** and **wired broadband** across various regions. Moreover, AT&T’s 5G home Internet service was only operational in **10 cities and towns** within New York, hence its withdrawal does not profoundly affect the overall broadband landscape in the state.

## **Wider Consequences: Additional States Examining Similar Laws**

New York’s judicial success has motivated legislators in **Vermont, Massachusetts, and California** to introduce comparable broadband affordability legislation. ISPs fear this could herald a **surge of state-level regulations** obligating them to provide low-cost Internet options.

The telecommunications sector’s apprehensions arise from the reality that **federal oversight of broadband providers has diminished**. In 2017, the **Federal Communications Commission (FCC) rescinded net neutrality regulations**, which also eliminated common-carrier rules that previously governed ISPs. In the absence of stringent federal regulations, states are granted increased authority to enforce their own standards on broadband providers.

## **Reactions from the Industry and Calls for Federal Oversight**

Gigi Sohn, executive director of the **American Association for Public Broadband**, reacted to the Supreme Court’s ruling by criticizing ISPs for resisting state regulation while simultaneously pushing for deregulation at the federal level.

“To broadband ISPs and their allies lamenting the New York law as well as proposed Massachusetts laws requiring a low-income broadband service offering: you advocated for complete deregulation at the federal level and you got it. This is the outcome,” Sohn stated on social media.

She also urged ISPs to back a **federal law** that would ensure **“limited yet significant oversight over broadband”** to safeguard consumer interests.

## **Legal Precedents and Future Legal Battles**

The telecommunications sector has encountered numerous legal setbacks in its efforts to overturn New York’s broadband law. Initially, a **federal judge blocked the law in 2021**, siding with ISPs. However, in **April 2024**, the **U.S. Court of Appeals for the 2nd Circuit overturned that ruling**, affirming that **states are entitled to regulate broadband providers in the absence of FCC authority**.

This ruling was pivotal as it strengthened the notion that **state governments can intervene to regulate broadband services when federal oversight is lacking**. The decision also underscored the repercussions of the FCC’s **2017 removal of net neutrality**, which weakened federal authority over ISPs.

## **Conclusion: A Defining Outcome for Broadband Regulation**

The Supreme Court’s decision to dismiss the telecom industry’s challenge represents a **significant triumph for New York and other states aiming to regulate broadband prices**. While AT&T’s departure from the 5G home