This past Monday (12/17,2024), the Supreme Court declined to review New York’s Affordable Broadband Act (ABA), allowing the act to go into effect in 2025. The ABA requires ISPs to offer $15 plans for low-income households. This effectively opens the door for other states to follow NY’s example by implementing similar rate regulations. Those in the industry selling ACP plans expected an encore to the Affordable Connectivity Program (ACP), as ACP was the encore to the Emergency Broadband Benefit (EBB); however, many expected an encore from the federal-level, not individual states.
State-by-state rate regulations may add some complexity to marketplace offerings, however, the need for these types of offerings in low-income households is more urgent than ever. In NY, and other states that follow, the ABA will increase the ability of low-income households to receive an internet service, which was become increasingly important for every day tasks.
Several major ISPs are suggesting that these types of regulations will severely impact their broadband investments in growth and expansion. Additional lawsuits are almost certain, but if the ABA goes into effect as expected, it will present new and incremental sales opportunities for indirect and affiliate resellers. These new opportunities will only multiply as additional states inevitably follow NY’s lead in the interim of a federal policy.