Trade groups representing AT&T, Verizon and other telecom companies are opening fire on a new law requiring them to provide discounted internet service to low-income households in New York.
New York’s first-in-the-nation law could be adopted by other states at a time when the White House has signaled it wants to reduce broadband prices for all Americans.
Trade associations USTelecom, CTIA, the New York State Telecommunications Association and others representing smaller companies filed a lawsuit Friday against New York’s new law requiring providers in the state to offer broadband service for $15 a month to low-income households. The trade groups saythe state doesn’t have the authority to mandate broadband prices, and warn it could undermine companies’ ability to invest and upgrade their networks.
New York Gov. Andrew Cuomo said “This is nothing more than a transparent attempt by billion-dollar corporations putting profit ahead of creating a more fair and just society,” in the statement. “If these companies want to pick this fight, impede the ability of millions of New Yorkers to access this essential service and prevent them from participating in our economic recovery, I say bring it on.”
There’s a fear from providers that other states could adopt the New York law. “The states have seen in the last four years the federal government do almost nothing to get people online,” Gigi Sohn, a former FCC adviser told Axios. “They’re stepping in and stepping up. I don’t think this is going to be the last state that does this.”
More at Axios.