Bipartisan ex-FCC Members Urge 2nd Circuit to Reject NY Affordability Law

New York’s affordable broadband law “regulates broadband rates” even though the state lacks authority, former FCC members Ajit Pai (R), Mike O’Rielly (R), Mignon Clyburn (D) and Jonathan Adelstein (D) told a federal court. The 2nd U.S. Circuit Court of Appeals received amicus briefs Wednesday supporting ISP associations that challenged the state law, enjoined by a lower court, that would require $15 monthly plans (see 2202230067). New York’s law “sets a price ceiling for two levels of broadband service … and price caps have been one of the main methods for regulating the rates charged for communications services in the United States,” the ex-commissioners wrote in case 21-1975. It may regulate rates only for New York households, but “this does not transform quintessential rate regulation into something else.” Broadband classification is irrelevant, the ex-commissioners said. “While much ink has been spilled debating whether broadband is an information service” regulated under Title I of the Communications Act or a telecom service under Title II, “that question does not determine the proper resolution of this case. Whatever the answer, broadband remains an interstate communications service, and broadband rates may not be regulated by state governments.” Lawful ways exist for states and the federal government to subsidize broadband for low-income households, the ex-commissioners added. One example is New York Gov. Kathy Hochul’s (D) $1 billion ConnectAll effort, which includes encouraging signups for the federal affordable connectivity program, they said. Others agreed. New York’s law “is not only preempted by federal law but unnecessary and counterproductive,” NCTA said. The Competitive Carriers Association said it “constitutes direct rate regulation of an interstate communications service.” The U.S. Chamber of Commerce, TechFreedom and Digital Progress Institute also urged the court to uphold the injunction by U.S. District Court in Central Islip, New York.