Edgar Cervantes/Android Authority
TL;DR
- A New York law requiring ISPs to offer cheaper internet plans to low-income households goes into effect on January 15.
- To comply, the New York-based ISP would have to start offering $15 or $20 per month service plans to low-income people.
- If these ISPs serve 20,000 or fewer homes they can apply for an exemption.
New York will soon begin enforcing the law passed in 2021, after a lengthy court battle with broadband industry lobbyists. State law requires ISPs, e.g. VerizonOffering $15 or $20 per month Internet service plans to low-income families.
Although ISPs won an initial victory by blocking the Affordable Broadband Act (ABA) in June 2021, the decision 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, meaning the appeals court’s decision is the final word on the issue. ISPs will now have to comply with the ABA, which will begin going into effect on January 15.
As reported Ars TechnicaNew York-based internet providers are now required to offer either a $15/month plan with at least 25Mbps download speeds, or a $20/month plan with 200Mbps download speeds. The price includes “any recurring taxes and fees such as recurring rental fees for service provider equipment required to obtain broadband service and usage charges.” Prices can be increased, but increases are limited to 2% per year and state officials can decide whether minimum speed increases are needed. If a company does not comply with the law, it can be fined up to $1,000 per violation.
An ISP may receive an exemption from the ABA if it provides service to 20,000 homes or fewer and the Commission believes that compliance would have an unreasonable or unsustainable financial impact on the business. With the law coming into force from tomorrow, these ISPs will be given a grace period of one month if they file their paperwork by Wednesday claiming that they meet the limit. If they file detailed financial information by February 15, they will be able to get a longer grace period.
Earlier this year, the FCC’s attempt to reinstate some net neutrality rules was rejected by a federal appeals court. Enforcement of the ABA shows how states can regulate ISPs, even if the FCC cannot.