Court Supports NY State’s Quest To Require $15 Broadband For Poor People, Much To Big Telecom’s Horror

When the Trump administration killed net neutrality, telecom industry giants convinced them to push their luck and declared that not only would federal regulators no longer try to meaningfully oversee telecom giants like Comcast and AT&T, but that states couldn’t either. They got greedy.

The courts didn’t like that much, repeatedly ruling that the FCC can’t abdicate its authority over broadband consumer protection, then turn around tell states what they can or can’t do.

The courts took that stance again last week, with a new ruling by the US Court of Appeals for the 2nd Circuit restoring a New York State law (the Affordable Broadband Act) requiring that ISPs provide low-income state residents $15 broadband at speeds of 25 Mbps. The law was blocked in June of 2021 by a US District Judge who claimed that the state law was preempted by the federal net neutrality repeal.

Giant ISPs, and the Trump administration officials who love them, desperately tried to insist that states were magically barred from regulating broadband because the Trump administration said so. But the appeals court ruled, once again, those efforts aren’t supported by logic or the law:

“the ABA is not conflict-preempted by the Federal Communications Commission’s 2018 order classifying broadband as an information service. That order stripped the agency of its authority to regulate the rates charged for broadband Internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority. Accordingly, we REVERSE the judgment of the district court and VACATE the permanent injunction.”

This ruling is once again good news for future fights over net neutrality and broadband consumer protection, Stanford Law Professor and net neutrality expert Barbara van Schewick notes in a statement:

“Today’s decision means that if a future FCC again decided to abdicate its oversight over broadband like it did in 2017, the states have strong legal precedent, across circuits, to institute their own protections or re-activate dormant ones.”

Telecom lobbyists have spent years lobbying to ensure federal broadband oversight is as captured and feckless as possible. And, with the occasional exception, they’ve largely succeeded. Big telecom had really hoped they could extend that winning streak even further and bar states from standing up to them as well, but so far that really hasn’t gone as planned.

One of the things that absolutely terrifies telecom monopoly lobbyists is the idea of rate regulation, or that government would ever stop them from ripping off captive customers stuck in uncompetitive markets. It’s never been a serious threat on the federal level due to regulatory capture and lobbying, even though it’s thrown around a lot by monopoly apologists as a terrifying bogeyman akin to leprosy.

Here you not only have a state retaining its authority to protect consumers from monopoly harm, but dictating to them that they must provide poor people with 25 Mbps broadband (which really costs ISPs at Comcast’s scale virtually nothing to provide in the gigabit era). Still, it’s the kind of ruling that’s going to give AT&T and Comcast lobbyists (and consultants and think tank proxies) cold sweats for years.