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AT&T Withdraws 5G Internet Service in New York Following Affordable Broadband Act

18/1/25

By:

Piyush Sharma

The telecom giant cites economic constraints imposed by New York’s new broadband law.

The telecom giant cites economic constraints imposed by New York’s new broadband law.

Introduction

AT&T has discontinued its 5G Internet Air service in New York in response to the state’s Affordable Broadband Act, which came into effect this week. The legislation aims to provide affordable internet plans to low-income households, but AT&T claims compliance would be uneconomical.

About the Affordable Broadband Act

Passed in 2021 and delayed due to legal challenges, the law mandates internet providers with over 20,000 customers to offer affordable plans for qualifying households. Providers must offer:

  • Plan 1: 25Mbps for no more than ₹1,250 ($15) per month.

  • Plan 2: 200Mbps for a maximum of ₹1,670 ($20) per month.

AT&T’s Stance

AT&T’s 5G Internet Air, offering speeds between 40–140Mbps for ₹4,590 ($55) per month, did not meet the affordability requirements. Instead of discounting its services, AT&T decided to cease operations in New York.

The company stated:

"New York’s broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest and expand our broadband infrastructure."

Impact on Consumers

Existing customers can use the service free for 45 days to find alternatives. AT&T does not provide fiber or DSL home internet in New York, further limiting options for consumers.

Conclusion

While the Affordable Broadband Act is designed to bridge the digital divide, AT&T’s withdrawal highlights the challenges of balancing affordability with business viability. New Yorkers must now explore other broadband options to meet their connectivity needs.

For more updates, stay tuned to Kushal Bharat Tech News.

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