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LiberalArkie

(16,757 posts)
Thu Jan 16, 2025, 01:20 PM 19 hrs ago

AT&T kills home Internet service in NY over law requiring $15 or $20 plans

JAN 16, 2025 11:34 AM

AT&T has stopped offering its 5G home Internet service in New York instead of complying with a new state law that requires ISPs to offer $15 or $20 plans to people with low incomes.

The decision was reported yesterday by CNET and confirmed by AT&T in a statement provided to Ars today. "While we are committed to providing reliable and affordable Internet service to customers across the country, New York's broadband law imposes harmful rate regulations that make it uneconomical for AT&T to invest in and expand our broadband infrastructure in the state," AT&T said. "As a result, effective January 15, 2025, we will no longer be able to offer AT&T Internet Air, our fixed-wireless Internet service, to New York customers."

New York started enforcing its Affordable Broadband Act yesterday after a legal battle of nearly four years. Broadband lobby groups convinced a federal judge to block the law in 2021, but a US appeals court reversed the ruling in April 2024, and the Supreme Court decided not to hear the case last month.

The law requires ISPs with over 20,000 customers in New York to offer $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds. The plans only have to be offered to households that meet income eligibility requirements, such as qualifying for the National School Lunch Program, Supplemental Nutrition Assistance Program, or Medicaid.

Snip

https://arstechnica.com/tech-policy/2025/01/att-complies-with-law-requiring-cheap-internet-by-ending-a-service-in-ny/

56 replies = new reply since forum marked as read
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AT&T kills home Internet service in NY over law requiring $15 or $20 plans (Original Post) LiberalArkie 19 hrs ago OP
Cheap, greedy bastards. That can't be that many people! -nt CrispyQ 19 hrs ago #1
To be fair, it's probably a considerable number pinkstarburst 18 hrs ago #9
Wow. I had no idea it was that many. CrispyQ 17 hrs ago #24
This message was self-deleted by its author WarGamer 19 hrs ago #2
Will universal basic income stop this loophole that corps use? Has anyone ever calculated in2herbs 19 hrs ago #3
What loophole are you referring to? MichMan 18 hrs ago #11
There will likely be no reprecussions to AT&Ts decision, hence a corporate loophole. Just as commentary, in2herbs 18 hrs ago #14
Why would there be repercussions to a company making a business decision ? MichMan 18 hrs ago #18
If corps are not "forced" (at times) to provide a product against their wishes because it goes against in2herbs 17 hrs ago #19
Yes n/t SickOfTheOnePct 16 hrs ago #27
Well ... yea Lurker Deluxe 16 hrs ago #29
To be fair SickOfTheOnePct 16 hrs ago #37
To be fair... Lurker Deluxe 16 hrs ago #39
My AT&T internet cost me $80.00 per month Emile 19 hrs ago #4
I pay $85 per month for fiber optic. totodeinhere 12 hrs ago #55
The closest fiber optic line is two and half miles Emile 11 hrs ago #56
State imposed price caps that are legitimately at or under the cost of rendering the service don't kelly1mm 19 hrs ago #5
Wild AT&T offers 10g of prepaid unlimited data for $25 a month LiberalArkie 18 hrs ago #6
For home internet? MichMan 18 hrs ago #7
I use the hot spot all the time and the prepay ATT is also used for the portable hot spots use for all sorts LiberalArkie 16 hrs ago #25
That would only last me days! in the stacks 15 hrs ago #41
For low income folks affected by this, I highly recommend PCs for People jmbar2 18 hrs ago #8
That still is too much. in the stacks 15 hrs ago #47
greedy rat bastards! mike_c 18 hrs ago #10
How much does it cost AT&T to provide this service? Lets assume it is more than $15 per month. Why would kelly1mm 18 hrs ago #12
I'm referring to AT&T mike_c 18 hrs ago #17
How you do you know the service is still lucrative at these mandated price points? nt kelly1mm 15 hrs ago #44
Greedy? Mountainguy 18 hrs ago #13
AT&T gross profit for the twelve months ending September 30, 2024 was $73.123B, a 1.61% increase year-over-year. Celerity 17 hrs ago #22
Ok SickOfTheOnePct 16 hrs ago #28
What is their cost basis? Are they actually incurring a loss at the legally-mandated prices? Celerity 16 hrs ago #30
No idea SickOfTheOnePct 16 hrs ago #33
disagree Celerity 16 hrs ago #34
Fair enough SickOfTheOnePct 16 hrs ago #35
Gross ... Lurker Deluxe 16 hrs ago #31
see post 20 Celerity 16 hrs ago #32
I agree SickOfTheOnePct 16 hrs ago #36
Tax code is what it is Lurker Deluxe 15 hrs ago #43
Do you agree with governments mandating developers set aside a certain percentage of new residential builds for low cost Celerity 15 hrs ago #46
Well ... that would depend Lurker Deluxe 15 hrs ago #48
40K usd as a mandated price is not reality in most (if any) areas of the US Celerity 15 hrs ago #49
Agreed Lurker Deluxe 15 hrs ago #50
Did they break tax laws? MichMan 15 hrs ago #51
Gross profit is not net profit EX500rider 15 hrs ago #40
did I say it was? Celerity 15 hrs ago #53
So they would rather make $0 NameAlreadyTaken 18 hrs ago #15
The US govt should provide high speed internet for everyone in America at a low cost. Yavin4 18 hrs ago #16
The Affordable connectivity program was a godsend from the Biden administration tishaLA 15 hrs ago #42
Poor AT&T also pays no income tax. maxrandb 17 hrs ago #20
Weak... Blue_Tires 17 hrs ago #21
AT&T: HOW DARE THEY REQUIRE US TO MAKE INTERNET AFFORDABLE TO EVERYONE! sakabatou 17 hrs ago #23
Low income internet users should consider themselves fortunate... hunter 16 hrs ago #26
So glad I didn't sign up with them claudette 16 hrs ago #38
Maybe the issue is means testing. Mosby 15 hrs ago #45
When a business is required to lose money on a service, they stop providing it. Bonx 15 hrs ago #52
Wonder if any other internet providers will follow ? MichMan 12 hrs ago #54

pinkstarburst

(1,564 posts)
9. To be fair, it's probably a considerable number
Thu Jan 16, 2025, 01:50 PM
18 hrs ago

The article states they must give this $15 internet service to all families with kids who qualify for free and reduced price lunch.

So in NYC, according to a google search, that is 72% of children. That's a LOT of households.

In the rest of New York state, 41% of children qualify for FRPL. That's also a LOT of households.

I think this is legislation that has good intentions, but is not well thought out. If the state government wants to bring better internet access to families, perhaps they need to fund it, or work with internet providers to offer subsidies to bring the cost down to what they're proposing. Just expecting internet providers to eat the cost for what would amount to 50% of their customers is IMHO not reasonable.

CrispyQ

(38,745 posts)
24. Wow. I had no idea it was that many.
Thu Jan 16, 2025, 03:13 PM
17 hrs ago

What a sad commentary about the "greatest country on Earth."

OTOH, also from google, AT&T gross profit for the quarter ending September 30, 2024 was $18.583B.

Response to LiberalArkie (Original post)

in2herbs

(3,271 posts)
3. Will universal basic income stop this loophole that corps use? Has anyone ever calculated
Thu Jan 16, 2025, 01:29 PM
19 hrs ago

how much tax money would be saved by not having to fund for some of our current "welfare" programs because people will have a UBI that disqualifies them for "welfare" and some of these costs they can now afford on their own?

MichMan

(13,768 posts)
11. What loophole are you referring to?
Thu Jan 16, 2025, 02:01 PM
18 hrs ago

Depending on the amount of UBI, it could very well put recipients above the income level needed to qualify for a lot of programs like SNAP, Section 8 housing, Medicaid and many other programs for low income people.

in2herbs

(3,271 posts)
14. There will likely be no reprecussions to AT&Ts decision, hence a corporate loophole. Just as commentary,
Thu Jan 16, 2025, 02:13 PM
18 hrs ago

what if a UBI provided people with a $30,000/year income. Why couldn't the money funding SNAP, Sec. 8, etc., be transferred to provide the money for the UBI instead? Think of all the govt red tape, etc., that would no longer be required for funding these existing programs because there would be no qualifying or monitoring of UBI?

A form of UBI already exists in some cities and the data shows the recipients spend it responsibly, not on drugs, etc.

MichMan

(13,768 posts)
18. Why would there be repercussions to a company making a business decision ?
Thu Jan 16, 2025, 02:32 PM
18 hrs ago

How can they be forced to provide a product against their wishes?

in2herbs

(3,271 posts)
19. If corps are not "forced" (at times) to provide a product against their wishes because it goes against
Thu Jan 16, 2025, 02:38 PM
17 hrs ago

their bottom line, are you saying that these products should only be available to those who can afford it?

Lurker Deluxe

(1,054 posts)
29. Well ... yea
Thu Jan 16, 2025, 04:12 PM
16 hrs ago

Should Apple be forced to provide a $250 I-Phone?

Bentley forced to make a $30,000 car?

The Dallas Cowboys forced to have $100 season tickets?

5 star restaurants forced to offer $4 meals?

NYC forced to offer downtown office space and/or high end condos at $5 sq/ft?

I could go on forever …

If they have a monopoly of services, sure … but they do not.

SickOfTheOnePct

(7,418 posts)
37. To be fair
Thu Jan 16, 2025, 04:31 PM
16 hrs ago

Season tickets for the Cowboys probably are around $100 right now 😂😂

I kid, I kid.

Emile

(31,419 posts)
56. The closest fiber optic line is two and half miles
Thu Jan 16, 2025, 09:08 PM
11 hrs ago

away. That's the problem when you live out in the countryside.

kelly1mm

(5,463 posts)
5. State imposed price caps that are legitimately at or under the cost of rendering the service don't
Thu Jan 16, 2025, 01:32 PM
19 hrs ago

make any sense. I think what NYS was thinking is AT&T would either 'eat' the loss or raise prices for non discounted plans to make up for the state imposed subsidy to those who qualify. With AT&T being a 'johnny come lately' to the cellular broadband market they made a business decision.

Just as a data point my cellular broadband carrier is T-Mobile and it is $50 per month.

LiberalArkie

(16,757 posts)
6. Wild AT&T offers 10g of prepaid unlimited data for $25 a month
Thu Jan 16, 2025, 01:41 PM
18 hrs ago

But can't do it for the poor.

LiberalArkie

(16,757 posts)
25. I use the hot spot all the time and the prepay ATT is also used for the portable hot spots use for all sorts
Thu Jan 16, 2025, 03:51 PM
16 hrs ago

things

jmbar2

(6,283 posts)
8. For low income folks affected by this, I highly recommend PCs for People
Thu Jan 16, 2025, 01:50 PM
18 hrs ago

It's a nonprofit in Minneapolis that offers low cost internet and computers to low income people.

Internet is based off of a hotspot - initial cost around $60. Then it's $15/mo unlimited. I have used them for years and they are very good.

https://www.pcsforpeople.org/internet/internet/

in the stacks

(3 posts)
47. That still is too much.
Thu Jan 16, 2025, 04:52 PM
15 hrs ago

Xfinity offers $10 a month unlimited wifi with decent speeds and there is no hardware to buy. The only catch is there has to be a hotspot nearby. I have never had an issue with it in my residence but when I am out and about there dead zones where it might not be available for a block or so. I use it to supplement my prepaid T-Mobile, which is $50 unlimited high-speed data plus unlimited 3G hotspot. The hotspot seemed to be slowing down (or I got spoiled by higher speeds) and so I bought Xfinity as a supplement.

kelly1mm

(5,463 posts)
12. How much does it cost AT&T to provide this service? Lets assume it is more than $15 per month. Why would
Thu Jan 16, 2025, 02:09 PM
18 hrs ago

they be 'greedy rat bastards' to refuse to provide service at a loss?

Or are you referring to the NYS lawmakers as the 'greedy rat bastards'.

mike_c

(36,416 posts)
17. I'm referring to AT&T
Thu Jan 16, 2025, 02:18 PM
18 hrs ago

They're apparently willing to walk away from lucrative services that the majority of their customers pay for rather than extend some low cost basic services, which are increasingly important for full participation in American social life, to the less fortunate.

kelly1mm

(5,463 posts)
44. How you do you know the service is still lucrative at these mandated price points? nt
Thu Jan 16, 2025, 04:49 PM
15 hrs ago

Mountainguy

(1,087 posts)
13. Greedy?
Thu Jan 16, 2025, 02:10 PM
18 hrs ago

They had to opt to stop providing any services in the biggest market in the country because the lowered rates were going to crush them.

You can't expect to offer than many underpriced plans and maintain bandwidth for your other users without massive costs.

It's a dumb law that was apparently put together either by people who had no idea what they were doing or were operating off the idea that because they are NY they can do whatever they want and companies will have to bend the knee.

If NY wants to provide cheap internet to the poor, then why don't they subsidize it instead of mandating that companies operate at a loss to provide it?

SickOfTheOnePct

(7,418 posts)
28. Ok
Thu Jan 16, 2025, 04:11 PM
16 hrs ago

So they should provide internet at a loss?

Making a profit is not illegal and is infact the point of a business.

Celerity

(47,212 posts)
30. What is their cost basis? Are they actually incurring a loss at the legally-mandated prices?
Thu Jan 16, 2025, 04:14 PM
16 hrs ago

Also, per post 20, some years they not only pay no income tax on billions of profits, but actually get monies back.

https://www.democraticunderground.com/100219909297#post20

SickOfTheOnePct

(7,418 posts)
33. No idea
Thu Jan 16, 2025, 04:21 PM
16 hrs ago

Maybe they aren’t incurring a loss. But they do have a right to a profit, no? And they have the right to decide what profit they want (up to the point people won’t pay that much, of course), no?

Someone ran the numbers and decided that it wasn’t financially worth it, either because they would lose money, would minimize profits, or would have to raise prices for other customers to point they would lost a portion of those customers.

Dumb law, IMO.

SickOfTheOnePct

(7,418 posts)
35. Fair enough
Thu Jan 16, 2025, 04:28 PM
16 hrs ago

We’re all entitled to our opinions.

Seems that the other internet providers in New York are willing to pick up AT & T’s slack, so shouldn’t be a problem.

Lurker Deluxe

(1,054 posts)
31. Gross ...
Thu Jan 16, 2025, 04:18 PM
16 hrs ago

EBITA??

30% - no
20% - no
10% - no

Apple?

30% - yea

Why does Apple not have to provide a $200 I-Phone?

If we are just talking about revenue?

SickOfTheOnePct

(7,418 posts)
36. I agree
Thu Jan 16, 2025, 04:29 PM
16 hrs ago

that it’s wrong that they paid no income tax and in fact got money back. I don’t agree that means they should have to provide cheap internet to a subset of customers.

Two separate issues, IMO.

Lurker Deluxe

(1,054 posts)
43. Tax code is what it is
Thu Jan 16, 2025, 04:41 PM
15 hrs ago

If they can report a loss, they get what they get.

I have no idea why they reported a loss, maybe a billion in infrastructure costs? No idea.

Has nothing to do with forcing a company to provide any service at a government set price. Government wants to set the price, provide the service.

Celerity

(47,212 posts)
46. Do you agree with governments mandating developers set aside a certain percentage of new residential builds for low cost
Thu Jan 16, 2025, 04:51 PM
15 hrs ago
housing?

you said

Has nothing to do with forcing a company to provide any service at a government set price. Government wants to set the price, provide the service.

Lurker Deluxe

(1,054 posts)
48. Well ... that would depend
Thu Jan 16, 2025, 05:05 PM
15 hrs ago

I am not sure of the code/law/whatever you cite.

Urban area expanding in certain directions sure.

Multi-billion dollar development in Aspen or Montana … absolutely not.

Government can, and should, manage property rights, usually at the state/county level.

Bet those beaches burnt to the ground in Cali will not have any of those parameters set upon them.

Depends on the location and setting. I do notice the example you cite puts forth no number … just, “low” something. Why not put that number down, developers must build and sell a certain percentage of their new homes for $40k?

They would say … no.

Lurker Deluxe

(1,054 posts)
50. Agreed
Thu Jan 16, 2025, 05:11 PM
15 hrs ago

Yet ….

You assume the rate set by NY is, reasonable.

So, ok, new developments must build and sell a certain percent of houses at $75k.

Pick a number, issue is the same.

MichMan

(13,768 posts)
51. Did they break tax laws?
Thu Jan 16, 2025, 05:22 PM
15 hrs ago

If not, they are merely using the tax code that was passed by the legislature and signed into law by the president

NameAlreadyTaken

(1,692 posts)
15. So they would rather make $0
Thu Jan 16, 2025, 02:13 PM
18 hrs ago

than make some amount of profit? Making $0 is not a good business plan. These customers should count their blessings anyway, as AT&T is a horrible company.

Yavin4

(36,758 posts)
16. The US govt should provide high speed internet for everyone in America at a low cost.
Thu Jan 16, 2025, 02:17 PM
18 hrs ago

During covid, we saw how poor students weren't able to keep up with online learning. Giving everyone access to high speed internet removes a huge barrier to many low income Americans.

tishaLA

(14,365 posts)
42. The Affordable connectivity program was a godsend from the Biden administration
Thu Jan 16, 2025, 04:40 PM
15 hrs ago

And then they couldn't convince repubs to renew funding for it even though it allowed their constituents to have free or very low cost internet access.

The creep Ted Cruz even wanted to renew it...but only for rural areas! The most cynical, repulsive move I've seen in a while.

maxrandb

(16,068 posts)
20. Poor AT&T also pays no income tax.
Thu Jan 16, 2025, 02:45 PM
17 hrs ago
"AT&T reported that it will pay no federal income taxes in 2021, despite $29.6 billion in earnings. The company reported a tax refund—or an income tax benefit—of $1.2 billion."

They also just got a nice little 9 figure taxpayer subsidy from the state of TN.

Expect to see much more of this. Blue states will be punished for not surrendering to the oligarchy.

hunter

(39,123 posts)
26. Low income internet users should consider themselves fortunate...
Thu Jan 16, 2025, 04:08 PM
16 hrs ago

... that they won't ever have to deal with AT&T.

( Providing they have other internet options, of course. )



claudette

(4,777 posts)
38. So glad I didn't sign up with them
Thu Jan 16, 2025, 04:36 PM
16 hrs ago

when I saw the ad. Instead I waited until Verizon offered 5G internet at my address in NY. Starts at $25 a month for first cell phone account member and $35 or $45 for others on the account depending on what they choose. You don’t have to have a Verizon cell phone account to get 5G.

Mosby

(17,793 posts)
45. Maybe the issue is means testing.
Thu Jan 16, 2025, 04:50 PM
15 hrs ago

This law created a whole new layer of administrative overhead, not to mention legal issues dealing with people who are denied.

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