AT&T has announced that it will no longer offer its 5G Internet Air service in New York, effective immediately, in response to the state's Affordable Broadband Act going into effect. The company cited the law's "harmful rate regulations" as the reason for its decision, claiming that it makes it uneconomical for AT&T to invest in and expand its broadband infrastructure in the state.

The Affordable Broadband Act, originally passed in 2021, requires internet providers with over 20,000 customers to offer two affordable broadband plans to low-income households that qualify for social assistance benefits like Medicaid or the National School Lunch Program. The plans must offer download speeds of at least 25Mbps for no more than $15 per month, or speeds of up to 200Mbps at a maximum of $20 per month. AT&T's Internet Air service, which offered download speeds of 40 to 140Mbps for $55 per month, did not meet these requirements.

Existing users of AT&T's 5G Internet Air service in New York will be able to continue using the service for 45 days without any charges, giving them time to find an alternate broadband provider. However, the company has made it clear that it will not comply with the new law and offer its service at a discounted rate. Instead, it has opted to withdraw its home internet services in the state altogether.

The Affordable Broadband Act is a significant development in the push for more affordable internet access in the United States. The law's implementation comes on the heels of Congress' decision not to continue funding the federal Affordable Connectivity Program, which offered discounts of up to $30 per month on home internet for qualifying households during the COVID-19 pandemic.

AT&T's decision to withdraw its 5G Internet Air service in New York has significant implications for the state's residents, particularly those in rural areas who rely on the service for internet access. The company's decision may also have broader implications for the telecom industry as a whole, as it sets a precedent for how companies respond to regulations aimed at increasing internet affordability.

As the digital divide continues to be a pressing issue in the United States, the Affordable Broadband Act and AT&T's response to it highlight the ongoing struggle to balance the interests of internet providers with the need for affordable internet access. While AT&T's decision may be seen as a setback, it also underscores the importance of continued efforts to promote internet affordability and accessibility for all.

For more information on the Affordable Broadband Act and its implications, visit the New York State website. For AT&T customers affected by the service withdrawal, the company has provided a FAQ page with details on the transition process.