New York implements $15 broadband law for low-income households
Bottom line: New Yorkers will soon be able to take advantage of legislation requiring Internet service providers to provide cheap broadband connectivity to low-income earners. A multi-year court battle between the state of New York and broadband industry lobby groups was recently resolved after the Supreme Court elected not to hear the case. As such, an earlier appeals court ruling stands.
Effective January 15, 2025, the Affordable Broadband Act (ABA) will once again take effect in New York. The law requires that ISPs with at least 20,000 subscribers offer 25 Mbps broadband service to low-income customers for $15 per month, inclusive of taxes and fees. ISPs can also comply by offering a 200 Mbps service for $20 a month. Failure to comply can result in a fine of up to $1,000 per violation.
Certain exemptions for ISPs are in play, such as for those that serve fewer than 20,000 customers – so long as the commission determines that compliance would result in “unreasonable or unsustainable financial impact on the broadband service provider.”
Roughly 1.7 million New York households – and some 23 million homes nationwide – used to receive a monthly discount on broadband costs thanks to an FCC program. That program ended in mid-2024, however, after Congress failed to provide additional funding.
As Ars Technica highlights, several ISPs already offer solutions for low-income households. Charter Spectrum, for example, has a $25 per month plan that affords a 50 Mbps connection. Both Comcast and Optimum have plans under $15 a month. Verizon’s Forward program can bring the price of Internet connectivity down to $20 per month.
According to Speedtest.net, anything below 5 Mbps is considered slow by today’s standards. A connection in the 5 – 20 Mbps range is better (but still Meh), while a 20 – 40 Mbps connection is said to be solid enough for 4K video streaming and general online gaming. A 40 – 100 Mbps connection is labeled as good, anything over 100 Mbps is considered fast, and 1 Gbps should allow you to do anything you want on multiple devices.
