AT&T pulls its 5G internet service in NY over new affordable internet law

AT&T announced it will no longer offer its 5G Internet Air service in New York this week in response to the state’s Affordable Broadband Act going into effect on Wednesday. The company says existing users can continue to use the service for 45 days without any charges, giving them time to find an alternate broadband provider, according to CNET.

New York originally passed the Affordable Broadband Act in 2021, but the law was stalled for several years by pushbacks and legal challenges from broadband lobbying groups. Last December, the US Supreme Court declined to intervene, allowing the law to finally come into effect this month.

It follows Congress’ decision not to continue funding the federal Affordable Connectivity Program last year, which started during the covid-19 pandemic and offered discounts of up to $30 per month on home internet for qualifying households.

The law requires internet providers with over 20,000 customers to offer two affordable broadband plans to low-income households that qualify for social assistance benefits like Medicaid or the National School Lunch Program. One plan offers download speeds of at least 25Mbps for no more than $15 per month, while the other boosts that to speeds of up to 200Mbps at a maximum of $20 per month.

AT&T’s Internet Air service offered New York residents download speeds of 40 to 140Mbps (which was temporarily slowed when the company’s 5G network was busy) for $55 per month, or $60 for those not opting for autopay. Instead of complying with the new law and offering Internet Air at a discount, AT&T has instead ended its home internet services in New York. The company also doesn’t offer home internet over fiber or DSL in the state.

“While we are committed to providing reliable and affordable internet service to customers across the country, New York’s broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state,” the company said in statements provided to CNET and Ars Technica.