AT&T Exits New York's Home Internet Market Amid Affordable Broadband Act

AT&T has officially discontinued its 5G home internet service, Internet Air, in New York, following the implementation of the state’s Affordable Broadband Act (ABA). This legislation requires internet service providers to offer significantly lower-priced plans to low-income households, setting rates at around $15 to $20. Faced with these mandates, AT&T opted to pull its service rather than adapt to the new regulatory landscape, citing unsustainable rate regulations that inhibit its ability to invest in New York's infrastructure. The Internet Air service, which launched in 2023 at a cost of $60 per month (or $47 when bundled with an AT&T mobile plan), had been available in most states, but New York was less of a core market for the company due to its limited infrastructure there. In light of this exit, AT&T is preparing to send customers return kits for their 5G routers. However, the company’s mobile services, including established 4G and 5G networks, will remain active and unaffected for New York consumers. As AT&T makes its departure from the broadband sector, attention shifts to competitors like Verizon and T-Mobile. Verizon already has affordable options that meet the ABA's requirements, while T-Mobile may seek to enhance its presence in the broadband market by capitalizing on AT&T's exit.