Governor Hochul and Attorney General James Improve Access to Affordable Home Internet for Vulnerable New Yorkers

Governor Kathy Hochul and New York Attorney General Letitia James today announced an agreement with T-Mobile USA, Inc. (T-Mobile), requiring the company to improve and expand the home internet service it offers eligible New Yorkers under the New York Affordable Broadband Act (ABA). An investigation by the Office of the Attorney General (OAG) found T-Mobile's offerings did not meet the ABA's requirements, which mandate that home internet providers offer high-speed broadband to income-eligible households for $15 per month at speeds of at least 25 Mbps, or $20 per month for speeds of at least 200 Mbps. The ABA also requires providers to make reasonable efforts to promote and advertise the availability of these affordable broadband plans. As a result of OAG's investigation, T-Mobile will end data caps that slowed the internet speeds of customers on ABA internet plans, offer ABA plans to more areas throughout the state and make it easier for eligible New Yorkers to find and sign up for affordable internet plans.

"The Internet is a lifeline in today's world: it's essential for work, school, accessing emergency services and staying in touch with loved ones. No New Yorker should struggle to access reliable and affordable internet, which is why my administration has made it a priority to ensure families and businesses across the state can thrive in today's digital world," Governor Hochul said. "Together with Attorney General James, I will continue to hold companies accountable and make sure everyone has the tools they need to participate fully in our society, democracy and economy."

Attorney General James said, "Reliable and affordable internet service is a basic need for all New Yorkers, but T-Mobile flouted the law designed to help vulnerable New Yorkers access it. My office is committed to seeing the Affordable Broadband Act realize its goal of ensuring that New Yorkers in need are not denied access to affordable home internet. I encourage all eligible New Yorkers to enroll in a low-cost home internet plan through the ABA."

The New York State Public Service Commission and Department of Public Service oversees compliance with the requirements of the ABA. After identifying concerns regarding T-Mobile's compliance with the law, the Department referred the matter to the OAG for further review.

Public Service Commission Chair Rory Christian said, "Our role in the implementation of the Affordable Broadband Act and ensuring New Yorkers have access to affordable, reliable broadband is an important part of the Public Service Commission's work. We appreciate the partnership of Governor Hochul and Attorney General James in addressing these concerns and securing changes that will affirm the Affordable Broadband Act's protections for eligible New Yorkers."

T-Mobile offers home internet plans to New Yorkers using a technology known as fixed wireless, which uses the company's existing mobile network to provide internet access. T-Mobile offers an ABA plan to eligible New Yorkers that advertises a download speed of 25 Mbps for a monthly price of $15, but the OAG's investigation revealed that customers were actually receiving significantly slower download speeds because of a monthly data cap. After an ABA customer used 50 gigabytes of data in a month, T-Mobile would reduce the customer's download speed by more than 97 percent, to 650 Kbps. A typical customer could hit the data cap after about four days of usage.

The OAG's investigation also found that T-Mobile was only offering ABA plans in areas where it had deployed 5G wireless service, even though it offered full-price internet plans that could deliver 25 Mbps download speeds in areas where it had 4G service. In addition, T-Mobile specifically coded its website to hide its ABA plan information from search engines, making it difficult for New Yorkers searching for low-priced internet to find their plans.

As a result of OAG's investigation, T-Mobile will remove the data caps associated with its ABA plans and deliver 25 Mbps download speeds to all ABA plan subscribers, unless network congestion requires temporary reductions. In addition, T-Mobile will offer ABA plans in all areas where it provides home internet service and make its ABA plan webpage discoverable by search engines.

Empire State Development President, CEO and Commissioner Hope Knight said,"Making high-quality broadband more affordable and accessible is central to Governor Hochul's vision of a more connected New York. The Affordable Broadband Act is an important tool in closing the digital divide, ensuring that cost is not a barrier to the opportunities and essential services that internet access makes possible. We commend Attorney General James for her work to uphold these protections and ensure that more households across the state benefit from reliable, affordable connectivity."

The New York Affordable Broadband Act (ABA) requires large internet service providers to offer eligible households a monthly plan for no more than $15 or a high-speed monthly plan for no more than $20.

• Reduced-cost plans include taxes and equipment fees, so you don't pay more.
• Plans, speeds, and internet service providers might depend on where you live.
• Mobile and dial-up services are not included.

New Yorkers are eligible to enroll in an ABA plan if at least one member of their household is currently receiving any of the following benefits:

• Medicaid;
• Supplemental Nutrition Assistance Program (SNAP);
• Home Energy Assistance Program (HEAP) or any baseline utility affordability benefit;
• Free or reduced-price school lunch through the National School Lunch Program; or
• Senior Citizen Rent Increase Exemption or Disability Rent Increase Exemption (SCRIE/DRIE).

New Yorkers without a household member enrolled in any of the above programs may still qualify for an ABA plan based on their income level. Governor Hochul and Attorney General James encourage New Yorkers to check their eligibility and learn more at broadband.ny.gov/consumer-resources.

This matter was handled by Assistant Attorneys General Marc Montgomery and Senior Enforcement Counsel Jordan Adler of the Bureau of Internet and Technology, under the supervision of Bureau Chief Kim A. Berger and Deputy Bureau Chief Clark P. Russell. The Bureau of Internet and Technology is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D'Angelo and overseen by First Deputy Attorney General Meghan Faux.

As part of Governor Hochul's efforts to expand broadband access and create a more equitable New York, her administration is investing $1 billion to transform the State's digital infrastructure, enhance competition among providers and ensure that every New Yorker has access to reliable, affordable high-speed internet. Her ConnectALL Initiative has overseen the successful launch and implementation of several programs to advance broadband access, including The Digital Equity Program, a plan to invest $50 million in digital literacy education and device access, the Affordable Housing Connectivity Program investing $100 million to bring new broadband infrastructure to serve low-income households in affordable and public housing, the ConnectALL Deployment Program to fund internet service providers to reach unserved and underserved locations, and more.