AT&T is back in New York after making a big fuss

Look what the cat dragged in: AT&T is back in New York!

The telco has quietly returned to the state's home broadband market after leaving NY at the beginning of 2025 over a dispute with the broadband affordability law (the law remains fully in effect and it seems that AT&T is in reverse).

It's official

AT&T has confirmed the return to NY in an email to Broadband Breakfast and it clarifies that it has resumed offering its Internet Air fixed wireless service there, marking a surprising reversal from its January 2025 decision.

At the time, AT&T strongly criticized New York's Affordable Broadband Act (ABA), arguing that the law made it too expensive to invest in broadband infrastructure.

Since AT&T doesn't have a traditional wired broadband network in New York (it offered fixed wireless only), ending Internet Air sales effectively meant the company exited the state's residential broadband business.

What is ABA?

The Affordable Broadband Act requires large providers – which definitely includes AT&T – to offer discounted broadband plans to eligible low-income households. Qualifying customers, including those enrolled in programs such as SNAP or Medicaid, can receive broadband service for as little as $20 per month.

Smaller providers with fewer than 20,000 subscribers may qualify for exemptions, but the vast majority of New York homes are served by companies covered by the law.

AT&T got them talking

AT&T's withdrawal became a key talking point for broadband industry groups. They argued that New York's price caps were already discouraging investment and cited AT&T's exit while asking the US Supreme Court to strike down the law, but that effort failed. The Supreme Court declined to hear the challenge, leaving the Affordable Broadband Act in place.

Despite previously describing the law as uneconomical, AT&T has now resumed offering its fixed wireless service in New York. What's more, the company doesn't say when exactly sales restarted, how many customers it serves in the state… or what triggered the change in course.

Is it different now?

The broadband market has changed somewhat since AT&T pulled out of New York.

One important development is the federal Broadband Equity, Access, and Deployment (BEAD) program, which is investing $42.45 billion to expand high-speed internet across the US. Under current federal rules, internet providers that receive BEAD funding are generally exempt from state broadband price regulations, potentially creating a conflict with New York's Affordable Broadband Act.

That said, BEAD doesn't appear to explain AT&T's return. The company didn't receive any BEAD funding in New York, so those exemptions don't apply to it.

State regulators have also pointed out that several large providers already offered discounted broadband plans for low-income households before the Affordable Broadband Act took effect, meaning the law didn't require major changes for everyone.

The good news is that AT&T's Internet Air fixed wireless service – if that's the one you prefer – is available in the state once again.

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