(Newswire.net — May 26, 2021) —
New York’s Governor Andrew Cuomo signed a controversial new bill on April 16, 2021, requiring internet service providers to offer an affordable $15 or $20 monthly broadband option for low-income households. Lobby groups for multiple internet service providers collectively sued the state at the end of the month.
The Broadband Bill
Cuomo enacted the bill to help state residents access a variety of online services, including remote learning, remote work opportunities and telemedicine.
“High-speed internet is essential to our everyday lives, and as we continue to reopen our state and adjust to new norms that have been shaped by the pandemic, we need to make sure every household has access to affordable internet,” said the governor.
Legal Arguments
The lawsuit claims that the New York broadband requirement is at odds with the Federal Communications Commission’s (FCC) deregulation of the broadband industry in December 2017. That deregulation eliminated net neutrality rules and enabled ISPs to censor certain websites and online content while promoting others. Net neutrality rules set in 2015 in the United States had held ISPs responsible for the equal provision of internet access, with no discrimination based on demographics, content, platform, etc.
The lawsuit brought against New York’s low-income broadband requirement bill states that rate regulation conflicts with the deregulation put in place by the FCC. It also says that the federal mandate supersedes it. The Communications Act of 1934 is legislation that put interstate communications services in the hands of the federal government. These same points were used to sue California for the installment of state net neutrality, a bid that California won in February of 2021.
Says Stanford Law Professor Barbara van Schewick, “An agency that has no power to regulate has no power to preempt the states, according to case law. When the FCC repealed the 2015 Open Internet Order, it said it had no power to regulate broadband internet access providers. That means the FCC cannot prevent the states from adopting net neutrality protections because the FCC’s repeal order removed its authority to adopt such protections.”
Only time will tell whether legal action taken against the state concerning the low-income broadband requirement will be effective. New York commercial litigation attorneys will stay tuned to the case’s progression and potential outcomes.
Potential Consequences
For state residents, the New York low-income broadband requirement bill aims to help everyone bring broadband internet service into their homes and benefit from the multiple services available online. The $15/month 25Mbs broadband service would apply to any resident already receiving free or reduced-price lunches; nutrition assistance program benefits; Medicaid; senior citizen or disability rent increase exemptions; or subsidized utilities.
The other option is a $20/month package that includes 200Mbs download speed, with no specification for upload speeds. The new price caps would be in place no later than June 15, 2021, and should include any recurring fees, such as hardware rental and taxes. It would also cap price increases at two percent per year.
As part of its commitment to the project, New York created a new state portal where state residents can find affordable services. In light of the many unreliable spots on the broadband map, the state also began a new study to determine the real availability of internet networks.
The New York broadband requirement would affect 7 million residents.