New York's Affordable Broadband Act New York starts enforcing $15 broadband law that ISPs tried to kill Fresh off court victory, NY says low-income plans must be available Wednesday. Jon Brodkin Jan 13, 2025 2:27 pm | 33 Credit: Getty Images | Yuichiro Chino Credit: Getty Images | Yuichiro Chino Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreThe New York law requiring Internet providers to offer cheap plans to people with low incomes will take effect on Wednesday this week following a multi-year court battle in which the state defeated broadband industry lobby groups.A US appeals court upheld the law in April 2024, reversing the ruling of a district judge who blocked it in 2021. The Supreme Court last month decided not to hear the broadband industry's challenge, leaving the appeals court ruling in place. The state law requires Internet providers to offer $15- or $20-per-month service to people with low incomes.As we've written, the battle between New York and ISPs was an important test case for how states can regulate broadband providers when the Federal Communications Commission isn't doing so. The Biden-era FCC's attempt to reinstate net neutrality rules and regulate broadband providers as common carriers was blocked in court, but ISPs lost the fight against the New York affordability law and an earlier fight against California's net neutrality law.New York-based ISPs can comply by offering $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds. The price must include "any recurring taxes and fees such as recurring rental fees for service provider equipment required to obtain broadband service and usage fees." Price increases are to be capped at 2 percent per year, and state officials will periodically review whether minimum required speeds should be raised.New York Public Service Commission Chair Rory Christian last week issued an order stating that the law will take effect on January 15. "On December 16, 2024, the United States Supreme Court denied the Plaintiff's request for further review," the order said. "As part of the litigation, the [New York attorney general] agreed not to enforce the ABA [Affordable Broadband Act] until 30 days after the date when the US Supreme Court decided the writ of Certiorari. Thus, the ABA will once again take effect and may be enforced in New York on January 15, 2025."1.7 million New York households lost FCC discountThe order said quick implementation of the law is important because of "developments at the federal level impacting the affordability of broadband service." About 1.7 million New York households, and 23 million nationwide, used to receive a monthly discount through an FCC program that expired in mid-2024 after Congress failed to provide more funding."For this reason, consumer benefit programs assisting low-income householdssuch as the ABAare even more critical to ensure that the digital divide for low-income New Yorkers is being addressed," the New York order said.New York ISPs can obtain an exemption from the low-cost broadband law if they "provide service to no more than 20,000 households and the Commission determines that compliance with such requirements would result in 'unreasonable or unsustainable financial impact on the broadband service provider,'" the order said.Over 40 small ISPs filed for exemptions in 2021 before the law was blocked by a judge. Those ISPs and potentially others will be given one-month exemptions if they file paperwork by Wednesday stating that they meet the subscriber threshold. ISPs must submit detailed financial information by February 15 to obtain longer-term exemptions."All other ISPs (i.e., those with more than 20,000 subscribers) must comply with the ABA by January 15, 2025," the order said. Failure to comply can be punished with civil penalties of up to $1,000 per violation. The law applies to wireline, fixed wireless, and satellite providers.Charter Spectrum currently advertises a $25-per-month plan with 50Mbps speeds for low-income households. Comcast and Optimum have $15 plans. Verizon has a low-income program reducing the cost of some home Internet plans to as low as $20 a month.Disclosure: The Advance/Newhouse Partnership, which owns 12.3 percent of Charter, is part of Advance Publications, which also owns Ars Technica parent Cond Nast.Jon BrodkinSenior IT ReporterJon BrodkinSenior IT Reporter Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry. 33 Comments