NY Gov. Cuomo Signs Budget Requiring Affordable Broadband

New York state will require all ISPs to sell a $15 monthly internet plan to low-income households. Gov. Andrew Cuomo (D) signed a budget Friday including the affordable broadband program and spending $1 million on a statewide map measuring broadband availability, reliability and cost. The plan got praise from the state’s consumer advocate, but the Information Technology and Innovation Foundation said it might foreshadow more price regulation.

Those eligible for the New York program include people receiving free or reduced-price lunches, supplemental nutrition assistance program or Medicaid benefits, utility affordability discounts, or senior citizen or disability rent increase exemptions, the governor’s office said. The $15 price includes equipment and taxes. Covered New York ISPs include Charter, Altice, Verizon, Frontier Communications and Windstream. ISPs must report annually to the New York Public Service Commission on their offers and uptake. Cuomo also launched an affordable internet portal to help consumers find inexpensive plans.

New York’s requirement is the “first in the nation,” exclaimed Cuomo in a news conference webcast from Buffalo. More than 98% of New Yorkers can get broadband, but many can’t afford it, he said. “These internet packages are often very, very expensive” due to bundling, “and it can be hundreds if not thousands of dollars per year,” said Cuomo. COVID-19 exposed many access “injustices,” said the governor, adding that low-income children lacking good broadband suffered the most when learning became remote. Cuomo announced a program last month providing free internet for 50,000 low-income students (see 2103190064).

Requiring every ISP to participate “guarantees a level playing field for all vulnerable New York households,” said New York Public Utility Law Project Executive Director Richard Berkley in an interview. “The other states could all benefit from a guarantee of affordable internet.”

New York already required the state’s two biggest cable companies to provide $15 monthly low-income plans through merger conditions for Charter/Time Warner Cable and Altice/Cablevision, but Friday’s announcement broadens eligibility to more consumers and extends the requirement to Verizon and more than 20 smaller CLECs, said Berkley. The PULP official noted the New York plan requires a minimum broadband speed equal to the FCC standard, now 25/3 Mbps, and would automatically update with any FCC increase.

ITIF fears “this goes too far,” said Director-Broadband and Spectrum Policy Doug Brake. Low-income plans are a good way to tackle affordability barriers, and “states could certainly take on some of the managerial efforts of verification” and help with raising awareness, he said. “But I worry controlling the terms of these offerings is the camel’s nose toward further price regulation and makes it somewhat more difficult for new entrants to navigate this space.”

Altice “is committed to keeping our communities connected and to offering affordable options to ensure our customers can receive internet solutions that meet their needs,” said a spokesperson, noting the company already provided a $14.99 monthly plan nationally.

Charter is studying the new law, its spokesperson said. An NCTA spokesperson declined to comment on the New York law, but said that the cable industry "has been voluntarily offering low-cost plans to eligible families for years now.”

At Frontier, in light of "recent federal action on the Emergency Broadband Benefit program, we do not believe this legislation is required, and do not believe states have the authority to set broadband prices,” said a spokesperson. “Frontier is participating in the federal program. We support the goals of bringing connectivity to eligible low-income households and providing access to online opportunities including jobs, healthcare, education, and more.” A Windstream spokesperson said: "We have a small presence in New York and are reviewing the legislation.” Verizon and USTelecom didn’t comment Friday.

The final New York budget didn’t include privacy rules, though they appeared in earlier versions. The legislature has until mid-June to sift through a variety of stand-alone privacy bills.