AT&T has decided to discontinue its 5G Internet Air service in New York due to the implementation of the state’s Affordable Broadband Act. The service, which had offered download speeds of 40 to 140 Mbps for $55 per month, will no longer be available to new customers. However, existing users will be able to continue using the service for 45 more days without incurring charges, providing them with time to find an alternative broadband provider.
The Affordable Broadband Act, originally passed in 2021, had faced significant delays due to opposition from broadband lobby groups, which led to legal challenges. The law was finally allowed to take effect earlier this month after the U.S. Supreme Court declined to intervene in December. The law mandates that internet providers with over 20,000 customers offer affordable broadband plans to low-income households, particularly those receiving social assistance such as Medicaid or the National School Lunch Program.
The law outlines two specific broadband plans that providers must offer to eligible households. The first plan must provide download speeds of at least 25 Mbps for no more than $15 per month, while the second plan must offer speeds up to 200 Mbps for a maximum of $20 per month. These requirements are aimed at making high-speed internet more accessible to families in need, following the end of the federal Affordable Connectivity Program, which had offered similar discounts.
AT&T’s Internet Air service, which did not meet the affordability standards set by the new law, was priced at $55 per month for speeds of 40 to 140 Mbps. The company chose not to lower the prices of this service to comply with the law’s regulations. Instead, AT&T has opted to cease offering any home internet services in New York, including those through fiber and DSL connections, effectively withdrawing from the state’s broadband market.
The company has stated that the new broadband law’s rate regulations are not financially sustainable for its operations. AT&T argued that the law imposes rates that make it economically unfeasible to continue investing in broadband infrastructure in the state. Although AT&T remains committed to providing reliable internet services across the country, it expressed concerns that the law’s financial constraints would hinder its ability to expand and maintain services in New York.