AT&T has announced it will no longer offer its 5G home internet service in New York due to the state’s new Affordable Broadband Act. The law, which went into effect on Wednesday, requires internet providers with over 20,000 customers to offer two affordable broadband plans to low-income households. AT&T stated that the law’s rate regulations make it uneconomical for the company to invest in and expand its broadband infrastructure in the state.
The company will allow existing users to continue using the service for 45 days without any charges, giving them time to find an alternate broadband provider. The Affordable Broadband Act mandates that qualifying social assistance beneficiaries must have access to affordable internet plans. One plan offers download speeds of at least 25Mbps for no more than $15 per month, while the other offers speeds up to 200Mbps at a maximum of $20 per month.
AT&T’s Internet Air service provided download speeds of 40 to 140Mbps for $55 per month ($60 without autopay), which falls above the pricing stipulated by the law. Rather than adjusting its pricing, AT&T decided to terminate the service.
at&t stops 5g in ny
The company also does not offer home internet over fiber or DSL in New York. “While we are committed to providing reliable and affordable internet service to customers across the country, New York’s broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state,” AT&T said in a statement. The Affordable Broadband Act had been stalled for several years due to pushbacks and legal challenges from broadband lobbying groups.
However, last December, the US Supreme Court declined to intervene, allowing the law to take effect this month. This follows Congress’ decision not to continue funding a federal program initiated during the COVID-19 pandemic, which offered discounts of up to $30 per month on home internet for qualifying households. SpaceX is also seeking an exemption from the law, arguing that its Starlink service in New York serves fewer than 20,000 households, which qualifies it for an exemption under the law.
The company currently charges $120 per month for residential users. The development is part of ongoing discussions about how best to provide affordable and accessible internet service to all residents, particularly in underserved rural areas.
