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New York reaches agreement with T-Mobile over throttled low-income internet

New York reaches agreement with T-Mobile over throttled low-income internet

Rule Changes New York, NY local

T-Mobile will drop data caps, expand Affordable Broadband Act plans and make them searchable after an investigation found speeds cut by more than 97%.

Today: New York announces T-Mobile settlement

Overview

Updated 2 hours ago

T-Mobile cut internet speeds for New Yorkers on its $15-a-month low-income plan by more than 97% once they used 50 gigabytes in a month. A typical user could hit that limit in about four days. On November 9, the state attorney general announced the company had agreed to stop.

The agreement tests how New York's Affordable Broadband Act works in practice. The law requires large internet providers to sell $15 or $20 plans to households on public benefits. T-Mobile offered the price but throttled the product, and only 15 households statewide had signed up.

Why it matters

A broadband affordability law only matters if people enroll. Fifteen households on T-Mobile's plan shows the gap.

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Key Indicators

15
New York households enrolled in T-Mobile's ABA plan
The statewide total the attorney general's office cited at the announcement.
97%
Speed reduction after data cap
The drop investigators found once a customer used 50 gigabytes in a month.
650 Kbps
Throttled download speed
What the plan delivered after the cap, against a required 25 Mbps.
$15
Monthly price of the discounted plan
The required rate for at least 25 Mbps under the Affordable Broadband Act.

Voices

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People Involved

Letitia James
Letitia James
New York Attorney General
Announced the agreement with T-Mobile on November 9
 Kathy Hochul
Kathy Hochul
Governor of New York
Joined the announcement with James
RC
Rory Christian
Chair, New York State Public Service Commission
Oversees Affordable Broadband Act compliance

Organizations Involved

ON
Office of the New York Attorney General
State law enforcement agency
Investigated T-Mobile and secured the agreement

State agency that investigated T-Mobile's compliance with the Affordable Broadband Act and announced the settlement.
T-Mobile USA, Inc.
T-Mobile USA, Inc.
Wireless carrier
Agreed to remove caps and expand ABA plans

Wireless carrier that sells home internet over its mobile network, including a discounted plan for low-income New Yorkers.
New York State Public Service Commission
New York State Public Service Commission
State Regulatory Agency
Oversees Affordable Broadband Act compliance

State regulator that monitors whether internet providers meet Affordable Broadband Act requirements.

Timeline

1 event Latest: Today

  1. New York announces T-Mobile settlement

    Today Agreement

    Attorney General James said T-Mobile will remove data caps, expand Affordable Broadband Act plans and make them searchable after an investigation found speeds cut by more than 97%.

Scenarios

1

T-Mobile removes caps and expands plans as promised

Likely Resolves by May 9, 2027

Discussed by: Attorney general's office and T-Mobile statements

T-Mobile follows through on the agreement: data caps come off the Affordable Broadband Act plan, availability expands to every area where it sells home internet, and the plan page becomes searchable. The attorney general's office points to it as a model for enforcing the law.

2

Another internet provider faces Affordable Broadband Act scrutiny

Possible Resolves by Nov 9, 2027

Discussed by: Consumer advocates and state broadband officials

With one template in place, the attorney general's office or the Public Service Commission examines whether other large providers meet the same price, speed and promotion rules. A second carrier faces its own investigation or agreement.

3

Enrollment climbs past 10,000 households

Uncertain Resolves by Nov 9, 2027

Discussed by: Broadband policy analysts

Fixing the visibility and speed problems turns a nearly invisible plan into one that low-income New Yorkers actually sign up for, and enrollment rises sharply from the 15 households cited at the announcement.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2021–2024

Affordable Connectivity Program (2021–2024)

A federal program gave low-income households up to $30 a month toward internet service. Enrollment reached roughly 23 million households before its funding lapsed, and the benefit ended in June 2024.

Then

Millions of households lost the subsidy, and some dropped service.

Now

States like New York moved to permanent price mandates like the Affordable Broadband Act to fill the gap.

Why this matters now

The federal program showed the difference between a benefit that is funded and a price that is mandated. New York's law depends on enforcement like the T-Mobile case to work.

2015–2017

FCC Open Internet Order and its repeal (2015–2017)

The Federal Communications Commission classified broadband as a regulated utility and banned throttling and paid prioritization. Two years later, under a new chairman, the FCC repealed those rules.

Then

Federal net neutrality rules were vacated, leaving enforcement to states and general consumer-protection law.

Now

A patchwork of state rules emerged, and fights over whether carriers can slow traffic continued.

Why this matters now

The core question in the T-Mobile case — whether and how a carrier may slow traffic — is the same one the net neutrality fight centered on, now playing out under a state affordability law.

Sources

(2)
Gothamist Office of the New York Attorney General