Summary:
AT&T withdraws its 5G home internet service in NYC due to the state's new Affordable Broadband Act.
The Act mandates affordable internet plans for low-income households, requiring speeds of at least 25Mbps for $15/month and up to 200Mbps for $20/month.
AT&T's decision is a response to the law's rate regulations, deeming them uneconomical for expansion and investment.
Existing customers have a 45-day grace period before service termination.
The move raises concerns about digital equity and access to affordable high-speed internet in NYC.
AT&T Abruptly Ends 5G Home Internet in NYC
AT&T has announced it's pulling its 5G home internet service from New York City in direct response to the state's new Affordable Broadband Act, which went into effect on Wednesday. This decision leaves existing customers with a 45-day grace period to find alternative providers.
The Affordable Broadband Act, passed in 2021 but delayed by legal challenges, requires internet providers with over 20,000 customers to offer low-income households two affordable plans: one with 25Mbps download speeds for $15/month and another with up to 200Mbps for $20/month.
AT&T's 5G home internet service, previously priced at $55-$60/month, did not meet these requirements. Instead of complying, the company chose to withdraw its service entirely, citing the law's rate regulations as economically unviable.
This action follows the end of federal funding for the pandemic-era Affordable Connectivity Program, which offered similar discounts.
AT&T's statement highlights the perceived harmfulness of the new regulations on their investment and expansion in New York's broadband infrastructure.
This move leaves many New Yorkers scrambling for alternative internet providers, raising concerns about digital equity and access to affordable high-speed internet. The company's decision also underlines the ongoing tension between affordable internet access and the profitability of telecom providers.
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