Edgar Cervantes / Android Authority
TL;DR
- New York’s law that requires ISPs to offer cheap internet plans to low-income households goes into effect on January 15.
- To comply, New York-based ISPs will have to start offering $15 or $20 per month service plans to people with low income.
- These ISPs can file for an exemption if they serve 20,000 households or less.
After a lengthy court battle with broadband industry lobbyists, New York will soon start enforcing a law that passed in 2021. The state law requires ISPs, like Verizon, to offer $15 or $20 per month internet service plans to low-income households.
Although ISPs got an initial win by blocking the Affordable Broadband Act (ABA) in June 2021, this ruling was reversed in April 2024 after the case went to the US appeals court. Last month, the Supreme Court decided not to hear the broadband industry’s challenge, which means the appeals court ruling is the final word on the issue. ISPs will now have to comply with the ABA, which will start being enforced on January 15.
As reported by Ars Technica, New York-based internet providers will now need to either offer a $15/month plan with at least 25Mbps download speeds, or a $20/month plan with 200Mbps download speeds. Included with the price are “any recurring taxes and fees such as recurring rental fees for service provider equipment required to obtain broadband service and usage fees.” Prices can be increased, but increases are capped at 2% per year and state officials can decide if the minimum speeds need to be raised. If a company is non-compliant with the law, it could be fined up to $1,000 per violation.
An ISP can obtain an exemption from the ABA if it serves 20,000 households or fewer and the Commission deems that compliance would have an unreasonable or unsustainable financial effect on the business. With the law going into effect tomorrow, these ISPs will be given a grace period of one month if they file their paperwork by Wednesday claiming that they meet the threshold. They’ll be able to get longer exemptions if they file detailed financial information by February 15.
Earlier this year, the FCC’s attempt to restore certain net neutrality rules was shot down by a federal appeals court. The enforcement of ABA shows how states can regulate ISPs even if the FCC can’t.
