In 2021, the state of New York passed a law requiring Internet companies to offer a $15 a month Internet plan to low-income families. That law was put on hold as it was going through the courts. Last week courts ruled the plan is legal and Internet providers must offer $15 a month options.
A group of Internet providers have released a new statement in opposition to this law. Unlike with the $30 federal government plan there are no subsidies to help support this $15 a month mandate.
In a statement posted online, NTCA–The Rural Broadband Association, ACA Connects, CTIA, New York State Telecommunications Association, Satellite Broadcasting & Communications Association and USTelecom said:
“The broadband industry supports efforts to connect all Americans to broadband. We’re committed to providing affordable options and a variety of plans to meet every family’s needs”.
“We are disappointed by the court’s decision and New York state’s move for rate regulation in competitive industries. It not only discourages the needed investment in our nation’s infrastructure, but also potentially risks the sustainability of broadband operations in many areas.”
“We urge Congress to maintain support for low-income Americans on a nationwide basis.”
Many providers are reportedly concerned that they will lose money in some areas because of the need to offer $15 Internet below what they believe is the cost to provide this service. Especially without the money from the federal government to help offset these costs.
The question now is will other states follow New York’s lead and mandate Internet at prices like the $15 a month limit this imposes? If so, Internet providers will need to find ways to offset these costs.
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