AT&T has pulled the plug on its 5G Internet Air service in New York, citing an inability to comply with a new law that sets price caps for qualifying low-income customers.
Internet Air costs around $60/month, but the New York Affordable Broadband Act (ABA) requires ISPs to offer “broadband at no more than $15 per month for service of 25Mbps, or $20 per month for high-speed service of 200Mbps” to qualifying households.
Residents are eligible under the ABA if they also qualify for free or reduced-priced lunch through the National School Lunch Program and if their annual gross income is less than 185% of the federal poverty guidelines.
ISPs are allowed to increase the $15 or $20 price every few years, and small businesses with fewer than 20,000 customers are offered some exemptions.
Still, AT&T tells PCMag that the “law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state.” It suggests the law is anti-business, saying it will “continue to support policies that promote capital investment, innovation and a competitive market.”
A US District Judge blocked the ABA in June 2021, saying it was rate regulation and preempted federal law. However, the US Court of Appeals for the 2nd Circuit upheld it in April 2024.
It went into effect this week, so AT&T cut off Internet Air in New York on Jan. 15. Existing customers still have service for 45 days at no charge until “they find other options for broadband.” AT&T will also send out recovery kits for people to return their equipment. Business customers can keep theirs for free.
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The shutdown means AT&T no longer offers a home internet option in New York. According to a spokesperson, AT&T Internet Air is only offered where AT&T Fiber is unavailable, and AT&T Fiber is not available in New York. This does not affect AT&T’s 4G and 5G cellular service.
AT&T’s Internet Air service debuted in August 2023 in 16 markets; it’s now in 47 states. The service landed at number six on our list of Best ISPs of 2024, besting larger providers like Optimum Fiber but landing behind similar 5G fixed-wireless offerings from T-Mobile and Verizon.
5G home internet service is a fast-growing category of broadband and a potential “cable-killer” due to its wide geographic reach and competitive download and upload speeds.
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About Emily Forlini
Senior Reporter
