New York state officials have reached a settlement with T-Mobile after investigating the wireless carrier’s imposition of a 50GB monthly data cap and drastic speed reductions on low-income home Internet plans required by law.
- Settlement requires T-Mobile to remove 50 GB data cap and speed throttling
- Affordable Broadband Act mandates plans with minimum 25 Mbps speeds for low-income users
- T-Mobile must expand low-income plan availability statewide within 120 days
What happened
New York’s Attorney General and Governor announced a settlement with T-Mobile after an 18-month investigation found that the carrier violated the state’s Affordable Broadband Act. T-Mobile had imposed a 50 GB monthly data cap on its low-income home Internet plans and reduced speeds from the required minimum of 25 Mbps down to 600 Kbps once the cap was exceeded. This throttling was not compliant with the terms of the law.
The law requires providers with over 20,000 customers to offer affordable home Internet plans for income-eligible households at speeds of at least 25 Mbps for $15 per month, or 200 Mbps for $20. In addition to the data caps and speed restrictions, T-Mobile limited plan availability to 5G-capable locations only and had obscured eligibility information from search engines, making access more difficult for potential subscribers.
Why it matters
Access to affordable and reliable broadband is critical for low-income households to participate fully in education, work, healthcare, and civic engagement. The New York Affordable Broadband Act is one of the few state laws actively enforcing broadband speed and pricing standards for low-income consumers. By imposing illegal speed throttling and data limits, T-Mobile undermined the law’s intention and restricted meaningful access.
The settlement ensures that T-Mobile will remove these unlawful restrictions and expand the availability of the required plans throughout New York State, benefiting more eligible households. It also underscores regulators’ determination to hold broadband providers accountable for compliance amid growing scrutiny over digital equity and affordability.
What to watch next
T-Mobile must comply with the settlement within 120 days, removing data caps and speed throttling on the Affordable Broadband Act plans while expanding plan access statewide. Observers should monitor T-Mobile’s execution of these commitments and any improvements in plan transparency and enrollment for eligible customers.
More broadly, other states may use New York’s enforcement and settlement as a model to adopt or strengthen similar affordable broadband mandates and to scrutinize wireless home Internet providers’ compliance. This case could also influence national discussions about minimum broadband service standards and the regulation of fixed wireless Internet offerings.