A New York District Court has upheld a state law that will require internet service providers to offer $15 broadband plans for low-income households.
In a court ruling on Friday, District Judge Denis Hurley reversed an earlier court decision to block out the Affordable Broadband Act on the grounds that the law is exclusive only to New York.
The trade groups representing the affected telecom companies have already expressed opposition to the ruling, claiming that it " potentially risks the sustainability of broadband operations in many areas."
Telecoms previously argued that only a few internet service providers like Verizon and AT&T can afford huge price discounts due to the higher number of subscribers, easing financial losses in the process.
Many local telecoms asserted that the same rule is applicable to smaller businesses solely operating in New York and nearby states.
As of writing, the trade groups have yet to declare intentions to contest the lower court ruling to a higher judicature.
Then New York Gov. Andrew Cuomo first passed the legislation in 2021 during the peak of the COVID-19 pandemic when workers and students rely on internet connection the most.
White House, Regulators Crack Down on ISP's 'Junk Fees'
The broadband bill discount is not the only move state, local, and regulatory governments have been rolling out over the past months to curb rising prices of internet bills.
The Federal Communication Commission has earlier voted to reinstate regulatory power over ISPs to prevent throttling and data prioritization on
This is in addition to the recently implemented "nutrition labels" the administration has touted as a way to remove so-called "junk fees" in internet bills and promote transparency to customers.
Internet Bill Discounts to Help Households Amid Threats of Price Hikes
Despite the clear steps in addressing the issue, many households remain at risk of losing access to affordable high-speed internet as prices for broadband connection are expected to spike.
The FCC has already alerted that millions of Americans could be affected by the price surge as the funding for the internet subsidy program will soon run out.
The White House has already proposed extended funding for the program, although the bill remains under deliberation in Congress while the existing budget continues to dwindle.
The FCC has already reduced subsidies provided to its beneficiaries to prepare people for the closing of the program in the coming months.
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