Several states consider price requirements
While the California proposal will face opposition from ISPs and is not guaranteed to become law, the amended bill has higher speed requirements for the $15 plan than the existing New York law that inspired it. The New York law lets ISPs comply either by offering $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds. The New York law doesn’t specify minimum upload speeds.
AT&T stopped offering its 5G home Internet service in New York entirely instead of complying with the law. But AT&T wouldn’t be able to pull home Internet service out of California so easily because it offers DSL and fiber Internet in the state, and it is still classified as a carrier of last resort for landline phone service.
The California bill says ISPs must file annual reports starting January 1, 2027, to describe their affordable plans and specify the number of households that purchased the service and the number of households that were rejected based on eligibility verification. The bill seems to assume that ISPs will offer the plans before 2027 but doesn’t specify an earlier date. Boerner’s office told us the rule would take effect on January 1, 2026. Boerner’s office is also working on an exemption for small ISPs, but hasn’t settled on final details.
Meanwhile, a Massachusetts bill proposes requiring that ISPs provide at least 100Mbps speeds for $15 a month or 200Mbps for $20 a month. A Vermont bill would require 25Mbps speeds for $15 a month or 200Mbps for $20 a month.
Telco groups told the Supreme Court last year that the New York law “will likely lead to more rate regulation absent the Court’s intervention” as other states will copy New York. They subsequently claimed that AT&T’s New York exit proves the law is having a negative effect. But the Supreme Court twice declined to hear the industry challenge, allowing New York to enforce the law.
