New New York state law raises a crisis with telecom companies

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Business groups representing some of the largest US telecoms companies, including AT&T and Verizon, are suing New York state over a new state law forcing them to offer cheaper broadband plans for low-income families in the state, as first reported by Axios.

Earlier this month, New York Governor Andrew Cuomo signed a bill requiring internet service providers to offer a $ 15 per month broadband internet option to low-income consumers and families in the state.

This is one of the first laws in the country to enforce such a rule, but groups like USTelecom, CTIA, and the New York State Telecommunications Association argue that the state has no authority to set broadband rates and that the law could weaken companies’ ability to upgrade their networks in the future.

And according to TheVerge, federal law anticipates this bill and ignores the $ 50 monthly broadband deduction recently passed by Congress, in addition to the many unprecedented commitments, donations and facilities that broadband providers have made to low-income consumers since the start of the pandemic, the alliance said in a statement. For Axius.

As of now, some ISPs are offering their own low-income options to consumers, but none of these programs are required by law. There are other support programs like Lifeline offered by the Federal Communications Commission that help reduce the cost of calling for families.

In December, Congress approved more than $ 3 billion to help consumers pay for internet service during the pandemic.

Commercial groups cite this law as a reason New York’s broadband mandate goes so far.



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