New York state has begun implementing its groundbreaking affordable broadband law, requiring Internet service providers (ISPs) to offer low-cost plans to income-eligible residents. The law takes effect on January 15, 2025, following years of legal challenges from the broadband industry.
Under the Affordable Broadband Act (ABA), ISPs must provide either $15 monthly plans with minimum 25Mbps download speeds or $20 monthly plans with 200Mbps speeds to qualifying low-income households. The mandated prices include all recurring taxes, fees, and equipment rental costs, with annual price increases capped at 2%.
The timing proves particularly critical as approximately 1.7 million New York households recently lost access to federal broadband discounts after a key FCC program expired in mid-2024 due to lack of Congressional funding.
Small providers serving fewer than 20,000 households may qualify for exemptions if they can demonstrate financial hardship. Over 40 small ISPs have already filed for exemptions. Larger providers must comply by the January 15 deadline or face potential civil penalties up to $1,000 per violation.
The law's implementation marks a major victory for state-level broadband regulation. It survived multiple legal challenges, including an initial block by a district judge in 2021 and appeals that went all the way to the Supreme Court, which declined to hear the broadband industry's case in December 2024.
Several major ISPs have already introduced qualifying plans. Charter Spectrum offers a 50Mbps plan at $25 monthly for eligible households, while Comcast and Optimum provide $15 plans. Verizon's low-income program reduces some home internet plans to $20 monthly.
The New York Public Service Commission will periodically review whether to increase the minimum required speeds as technology advances. The law applies across wireline, fixed wireless, and satellite internet providers operating in the state.