AT&T shuts down its home internet service in New York to avoid new broadband law

AT&T has announced that it will cease offering its 5G home internet service in New York State. This drastic decision, first reported by CNET, comes in direct response to the state’s landmark Affordable Broadband Act (ABA), which mandates that internet service providers offer low-income households significantly cheaper internet plans. (h/t: Ars Technica)

Starting January 15, the Affordable Broadband Act (ABA) will require providers in New York State to offer plans at $15 per month for 25Mbps speeds or $20 per month for 200Mbps speeds. These prices must include all recurring taxes, fees, and equipment rental costs.

Notably, the Act only applies to households that qualify for programs like the National School Lunch Program, Supplemental Nutrition Assistance Program, or Medicaid. Smaller internet providers can apply for an exemption if they serve fewer than 20,000 households and can prove financial hardship.

AT&T explained its decision to pull the plug on its Internet Air service for the entire state, saying, “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.”

Internet Air, launched in 2023, offers home internet for $60 per month (or $47 if bundled with an AT&T mobile plan). It’s available in almost every state, but New York falls outside AT&T’s core 21-state wireline territory, making it easier for the company to bow out.

Meanwhile, AT&T continues to expand its services elsewhere, with 135,000 new Internet Air customers added in the last quarter alone.

Existing Internet Air customers in New York have 45 days to find a new provider, during which they can continue using the service for free. After that, AT&T plans to send customers prepaid return kits for equipment.

The company emphasized that its mobile services, including 4G and 5G networks, remain unaffected, so smartphone users in New York need not worry.