The short version
- New York state officials alleged T-Mobile illegally restricted low-income home internet plans with data caps and severe speed throttling.
- A settlement requires the carrier to eliminate these restrictions and expand plan availability within 120 days without admitting wrongdoing.
- The dispute centers on compliance with the Affordable Broadband Act, which mandates specific minimum speeds for eligible households.
T-Mobile has reached a settlement with New York state authorities regarding its administration of low-income home internet services. The agreement addresses allegations that the wireless carrier imposed restrictive data limits and reduced connection speeds on plans intended to comply with state affordability mandates. Under the terms of the resolution, T-Mobile must remove these barriers and broaden access to eligible customers across the state within four months.
The core of the dispute involves the New York Affordable Broadband Act, legislation that took effect in January 2025 following a prolonged legal challenge by industry groups. The law requires internet service providers with substantial customer bases to offer high-speed broadband at fixed low prices for households meeting specific income criteria. Providers must deliver speeds of at least 25 megabits per second for $15 monthly, or 200 megabits per second for $20 monthly.
State investigators found that T-Mobile’s implementation of these plans included a 50-gigabyte monthly data cap. Once subscribers exceeded this threshold, their maximum download speed was reduced from the required 25 megabits per second to approximately 600 kilobits per second. Officials noted that typical usage patterns could cause customers to hit this limit within just four days of service, effectively negating the high-speed benefits mandated by the statute.
Beyond the data and speed restrictions, the investigation identified other compliance issues. T-Mobile limited availability of these affordable plans to areas with 5G coverage, excluding residents in regions served only by 4G networks. Additionally, the company configured its website so that search engines could not index pages containing detailed information about eligibility and enrollment processes, potentially hindering consumer access to the programs.
The settlement does not include an admission of liability from T-Mobile. The carrier stated that it neither admits nor denies the findings presented by the New York Attorney General’s office. In a public statement, T-Mobile emphasized its history of supporting connectivity in New York and described the agreement as a step toward greater clarity and expanded availability for eligible customers while maintaining low pricing.
The Affordable Broadband Act emerged from a nearly four-year legal battle between the state and broadband industry associations, including CTIA, which represents major wireless carriers. The Supreme Court ultimately rejected the industry’s challenge to the law, allowing enforcement to begin in early 2025. T-Mobile’s compliance issues were brought to light after the Department of Public Service raised concerns with the Attorney General’s office in June 2025.
This case highlights broader challenges in enforcing broadband affordability standards across different service models. While T-Mobile offers fixed wireless internet as an alternative to traditional wired connections, the technical constraints of cellular networks may have influenced its initial plan design. The settlement requires the company to align its offerings with statutory requirements regardless of the underlying technology used to deliver service.
Other providers have faced similar scrutiny under the new law. For instance, cable operator Optimum initially failed to comply with enrollment requests shortly after the law took effect, requiring intervention before providing access to entitled customers. These incidents suggest that while the legal framework is established, consistent implementation across diverse internet service providers remains an ongoing regulatory focus.
The resolution mandates that T-Mobile eliminate speed limits and expand plan availability within 120 days. It also requires improved transparency regarding plan details and eligibility criteria. As the carrier adjusts its offerings, regulators will likely monitor compliance to ensure that low-income households receive the high-speed connectivity promised by state law without hidden restrictions or technical barriers.
This development underscores the tension between corporate cost management strategies and public policy goals aimed at digital equity. By settling without admitting fault, T-Mobile avoids potential penalties while committing to structural changes in its service model. The outcome may set a precedent for how other carriers interpret and implement similar affordability mandates in New York and potentially other jurisdictions considering comparable legislation.
Sources behind this briefing
Go to the original reporting
- Ars Technica↗T-Mobile illegally imposed 50 GB cap on low-income home Internet plan, NY says
