N.Y. Lawmakers May Mandate $5 Broadband Plans Next Year

New York legislators could double down on a court-blocked state law that sought to require $15 monthly plans for low-income households. Assemblymember Brian Cunningham (D) plans to reintroduce his 2022 bill AB-10690 this January to require $5 monthly internet for low-income consumers, the Democrat said in an interview this week. Three ISP associations that sued New York over its previous affordability bill condemned the fresh attempt to lower broadband prices.

“Anything we can do to level the playing field to create access is important,” said Cunningham. Senate Telecommunications Committee Chairman Kevin Parker (D) will champion the bill in the other chamber, Cunningham said. The assemblymember is ready to respond to any ISP concerns. “I’m not shying away from a fight with industry.” Parker didn’t comment.

Cunningham’s 2022 bill proposed requiring at least 100 Mbps download and 10 Mbps upload speeds for $5, including any recurring taxes and fees. Households that qualify for Medicaid, the national school lunch program, supplemental nutrition assistance program, a utility affordability benefit or senior citizen or disability rent increase exemptions would be eligible. So would any consumer whose annual gross household income doesn’t exceed 185% of the federal poverty guidelines.

A district court stopped New York from enforcing 2021’s Affordable Broadband Act in June that year (see 2106110064). The ABA proposed requiring 25/3 Mbps for $15 monthly. The state appealed to the 2nd U.S. Circuit Court of Appeals (case 21-1975). Wednesday, the appeals court set Jan. 12 oral argument. Bipartisan ex-FCC members told the 2nd Circuit in March the New York law improperly regulated broadband rates (see 2203030042).

New York shouldn’t wait for the courts to finish reviewing the state’s previous affordable broadband bill, said Cunningham: Students need access now to do their homework. ISPs “haven’t produced any documents” backing up their claims they will lose millions of dollars in revenue, said the Democrat, saying he’s confused by the argument: “I’m not sure how you would lose money on a population that has not yet plugged in.” Cunningham noted the ABA passed in 2021 before he joined the Assembly.

The federal affordable connectivity program is “temporary” and New Yorkers could be left at risk if the ACP expired, Cunningham said. The assemblymember said he considered models and polling studies to come up with $5. The bill accounts for inflation by letting broadband providers increase the price at least 2% every five years, noted the Democrat: Proposed eligibility requirements would prevent abuse and ensure the right people are included. The legislator included a 100/10 Mbps minimum speed standard to “make sure we weren’t compromising value because people weren’t paying the full cost.”

The New York State Telecommunications Association slammed the bill. The measure, like the “rushed through” 2021 ABA “that is currently enjoined by a federal court, this legislation, although well-intentioned, will undermine the business plans of our member companies who cumulatively have invested billions of dollars over the past few years to bridge digital divides in New York and will result in less broadband deployment for areas of the state that need it most,” emailed NYSTA President Craig Miller. Given the COVID-19 pandemic and economic challenges, “many of our companies instituted programs and products to assist those who have financial struggles in order for them to remain connected,” including participating in ACP, he said.

Due to “significant questions" about the ABA "in terms of rate regulation and federal preemption, now is not the time to be doubling down on rate-setting of broadband service,” said NTCA Executive Vice President Mike Romano. “Such a measure would be particularly problematic for smaller providers that already face substantial costs and challenges in deploying and operating networks in sparsely populated rural areas.” NTCA members participate in federal and state affordability programs, he noted. “We should look to build upon these solutions and enhance their effectiveness rather than reverting to rate prescription.”

ACA Connects shares Cunningham’s goal of connecting low-income households, said CEO Grant Spellmeyer. “Fortunately, we have in place" the ACP “to do just that, and more than 1 million New Yorkers are already participating.” CTIA and USTelecom, who joined the three other associations in the lawsuit against New York’s 2021 law, declined to comment.