The company was throttling speeds for plans offered under the Affordable Broadband Act.
New York’s attorney general found that T-Mobile was not following the state’s Affordable Broadband Act, which sets requirements for offering service to low-income residents. Under the ABA, eligible households must be able to purchase broadband at speeds of at least 25 Mbps for $15 a month or 200 Mbps for $20 a month without additional taxes or equipment fees. Providers are also required to make “reasonable efforts” to promote these low-cost options.
The Office of the Attorney General discovered that T-Mobile had placed monthly data caps on its ABA plans. According to the press release, T-Mobile would throttle speeds to as low as 650 kilobits per second after a customer had used 50GB of data, which could happen in about four days of typical broadband use. The company was also only offering its ABA plans in areas where it had 5G wireless deployed and was preventing information about those plans on its website from being seen by search engines.
Following the investigation, T-Mobile will remove those data caps, make its ABA plans available in all places in the state where it offers home internet service, and will ensure that search engines can access details about ABA plans.
“Reliable and affordable internet service is a basic need for all New Yorkers, but T-Mobile flouted the law designed to help vulnerable New Yorkers access it,” Attorney General Letitia James said. “My office is committed to seeing the Affordable Broadband Act realize its goal of ensuring that New Yorkers in need are not denied access to affordable home internet. I encourage all eligible New Yorkers to enroll in a low-cost home internet plan through the ABA.”
In a statement shared with Engadget, T-Mobile the company said “We have a long history of helping customers in New York stay connected through low-cost broadband, and we’re updating our plan to meet the state’s requirements while maintaining the same low price. We’ve reached an agreement with the New York Attorney General that builds on that commitment, provides greater clarity around our offering and makes the plan available to more eligible customers.”
Update, November 11, 6:20PM ET:Added a statement from T-mobile.