T-Mobile Settles New York Lawsuit Over Affordable Broadband Violations
New York regulators force T-Mobile to remove data caps and improve access for low-income households.
1Settlement Over Broadband Access
T-Mobile reached a settlement with New York officials following allegations that it violated the Affordable Broadband Act. The state investigation determined the company imposed restrictive data caps and speed limits on low-income home internet plans. These actions directly contradicted state mandates requiring affordable, high-speed connectivity for eligible residents across New York.
2Data Caps and Speed Throttling
The company previously enforced a 50GB monthly data limit on its $15 low-income broadband plans. Once users exceeded this threshold, T-Mobile reduced connection speeds to 650 Kbps, a drop of over 97 percent. This practice effectively rendered the service unusable for standard tasks, violating the spirit of the state-mandated affordable program.
3Geographic Availability and 5G Restrictions
Regulators discovered that T-Mobile restricted these affordable plans exclusively to areas with 5G coverage. This occurred despite the company offering standard-rate 25 Mbps plans in 4G-only regions. The settlement now mandates that T-Mobile must expand these low-income plan offerings to all geographic areas where it provides fixed-wireless home internet services.
4Intentional Website Search Obstruction
The Office of the Attorney General found that T-Mobile intentionally coded its website to prevent search engines from indexing its affordable broadband pages. This practice made it difficult for eligible customers to find or enroll in the required plans. T-Mobile is now legally obligated to make these pages easily discoverable online.
5Mandated Service Quality Improvements
Under the new agreement, T-Mobile must guarantee download speeds of at least 25 Mbps for all Affordable Broadband Act plans. By eliminating data caps and speed throttling, the company ensures that low-income households receive the same baseline performance as standard-rate customers, fulfilling the core requirements of the state's broadband legislation.
6Implementation Timeline for Changes
The settlement requires T-Mobile to complete all necessary operational changes within a 120-day window. This period covers the removal of data caps, the expansion of plan availability to all service areas, and the technical updates to website indexing. Officials expect full compliance with these terms by the end of this period.
7Scope of Legal Action
The legal dispute and subsequent settlement specifically concern T-Mobile's wireless home internet service offerings. The investigation did not target the company's mobile phone plans or other cellular data products. Governor Kathy Hochul and Attorney General Letitia James announced the resolution, emphasizing the state's commitment to enforcing the Affordable Broadband Act standards.
8Future Regulatory Implications
This case highlights the ongoing tension between telecommunications providers and state regulators regarding low-income access mandates. By forcing transparency and service parity, New York aims to prevent companies from creating digital barriers for vulnerable populations. Future oversight will likely focus on ensuring that these affordable plans remain accessible and functional.