A new era of affordable broadband in New York State has come at a cost for some residents. AT&T announced this week that it will cease offering its 5G home internet service, known as AT&T Internet Air, in the state effective January 15th, 2025. This decision comes in direct response to a new law requiring internet providers to offer low-income residents access to high-speed internet at significantly reduced rates.
The law, which went into effect this week, mandates that providers offer plans with speeds of 25Mbps for $15 per month or 200Mbps for $20 per month to eligible low-income households. AT&T claims these “harmful rate regulations” make it financially impossible to continue offering its fixed-wireless 5G home internet service in New York.
This move leaves many New Yorkers who rely on AT&T Internet Air scrambling for alternative broadband options. The company says it will allow existing customers to retain service for the next 45 days free of charge to give them time to find new providers. However, with AT&T being the sole provider of fixed-wireless internet in many areas, residents may face limited choices and potentially higher costs.
The impact of this decision is heightened by the fact that AT&T does not offer its other internet services, such as fiber or DSL, in New York. This leaves the company’s wireless service as its only remaining offering in the state. AT&T assures customers that its wireless services will remain unaffected.
New York’s broadband law aims to bridge the digital divide by ensuring affordable internet access for low-income families. This initiative gained urgency after the federal Affordable Connectivity Program, which provided subsidies for internet service, ran out of funds last year. The ACP had supported approximately 23 million households nationwide.
The law faced legal challenges from the telecommunications industry, but ultimately prevailed. An appeals court allowed it to proceed last April, and the US Supreme Court declined to hear further challenges in December.
While the law promises more affordable internet for many, AT&T’s withdrawal highlights the potential consequences of such regulations. It raises questions about the delicate balance between government intervention to ensure affordability and the need for companies to maintain profitable operations. The long-term impact on broadband access and competition in New York remains to be seen.
This situation also underscores the ongoing debate surrounding internet access as a public utility. As more aspects of daily life move online, reliable and affordable internet access becomes increasingly crucial. New York’s law represents a bold step towards ensuring digital equity, but the response from AT&T serves as a stark reminder of the challenges in navigating this complex landscape.