ISPs must offer cheaper internet to low-income families after trying to prevent this

After a lengthy court battle with broadband industry lobbyists, New York will soon begin enforcing the 2021 law. State law requires ISPs, e.g Verizonoffering $15 or $20 per month internet service plans to low-income families.

ISPs won an initial victory by blocking the Affordable Broadband Act (ABA) in June 2021, but that ruling was overturned in April 2024 after the case went to a US appeals court. Last month, the Supreme Court decided not to hear the broadband industry’s objection, meaning the appeals court decision is the final word on the matter. ISPs will now have to comply with the ABA, which will come into effect on January 15.

As reported Ars TechnicaNew York-based ISPs will now have to offer either a $15 per month plan with download speeds of at least 25 Mbps or a $20 per month plan with download speeds of 200 Mbps. The price includes “any recurring taxes and fees, such as recurring rental fees and usage fees for service provider equipment required to obtain broadband service.” Rates can be increased, but increases are limited to 2% per year, and state officials can decide if minimum speed increases are necessary. If a company does not comply with the law, it can be fined up to $1,000 per violation.

An ISP may be exempt from ABA if it serves 20,000 households or fewer and the Commission determines that compliance would have an unreasonable or unsustainable financial impact on the business. With the law taking effect tomorrow, these ISPs will be given a month’s grace period if they submit documents by Wednesday claiming they have met the limit. If they provide detailed financial information by February 15, they can get longer exemptions.

Earlier this year, the FCC’s attempt to restore certain net neutrality rules was struck down by a federal appeals court. The ABA’s enforcement shows how states can regulate ISPs even if the FCC can’t.