Internet providers have argued they are primarily subject to federal law, which regulates interstate commerce. The judge questioned whether a state can tell an internet provider how much they can charge consumers. New York State argued those estimates aren’t backed by any financial records.īut Judge Hurley said that the state didn’t cite any reason that the courts shouldn’t rely on the internet companies’ financial estimates, which they submitted under penalty of perjury. Verizon estimated the ad campaign would cost between $250,000 and $1 million. The law also requires providers to advertise the broadband plan for low-income consumers. “The Champlain Telephone Company, for example, ‘estimates that nearly half of its existing broadband customers will quality for discounted rates,’ with each customer ‘causing a monetary loss.'” “While a telecommunications giant like Verizon may be able to absorb such a loss, others may not,” the judge wrote. Three of the internet companies told the court that the law would reduce annual net income by at least $1 million each. Hurley, of the Eastern District of New York, said in a preliminary injunction “the internet’s promise of access” hinges on whether people can afford it.īut the judge said the internet providers have shown that they could suffer “imminent irreparable injury” because of the law’s potential impact on their wallets. District Court Senior District Judge Denis R. USTelecom, CTIA, the New York State Telecommunications Association and other industry groups representing internet providers had sued in April arguing that the law meant they could either face penalties for not complying or be forced to provide the services “at a loss.” It allowed the state’s attorney general to issue penalties up to $1,000 per violation from providers. ![]() The low-income broadband consumers law passed in the state budget in April, which was supposed to come into effect on Tuesday. New York cannot require internet providers to offer broadband service for low-income customers for as little as $15-a-month starting next week, a federal judge ruled on Friday.
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