New York says T-Mobile must drop a 50 GB cap on low-cost home internet

New York says T-Mobile has agreed to drop a data cap on the low-cost home internet it must offer under the state's Affordable Broadband Act, to sell those plans in more places, and to stop hiding the signup page from search engines. Governor Kathy Hochul and Attorney General Letitia James announced the agreement on November 9.

The state says a 50 gigabyte cap cut speeds by more than 97 percent. The attorney general's office says T-Mobile advertised an eligible plan at 25 megabits per second for $15 a month, then reduced the download speed to 650 kilobits per second after a customer used 50 gigabytes. It says a typical customer could hit that cap after about four days. The law requires large home internet providers to offer income-eligible households a plan of at least 25 megabits per second for no more than $15 a month, or at least 200 megabits per second for no more than $20. Mobile and dial-up service are not covered.

The plans were limited to 5G areas, and the page was hidden from search. The state says T-Mobile offered the required plans only where it had 5G home internet, even though full-price plans could deliver 25 megabits per second on its 4G network. It also says the company coded the plan page so search engines would not list it. Under the agreement, T-Mobile will offer the plans everywhere it sells home internet, keep the 25 megabit speed unless congestion forces a temporary cut, and let search engines index the page.

Attorney General Letitia James said T-Mobile flouted the law designed to help vulnerable New Yorkers access affordable home internet. The state says people may qualify through Medicaid, food assistance, energy aid, free or reduced-price school lunch, or certain rent exemptions, and that others may qualify by income. Eligibility details are at broadband.ny.gov.