NY Says T-Mobile Illegally Imposed a 50 GB Cap on Low-Income Home Internet Plan
State alleges broadband law violation
Governor Kathy Hochul and Attorney General Letitia James announced the settlement on Monday. They said a state investigation found T-Mobile’s wireless home internet offering failed to meet the New York Affordable Broadband Act’s requirements.
The law requires providers with at least 20,000 customers to offer income-eligible households home internet for $15 a month at speeds of at least 25 Mbps, or $20 a month at speeds of at least 200 Mbps. New York officials said slowing service after a monthly data allowance violates those requirements.
Under the plan, T-Mobile reduced maximum download speeds from 25 Mbps to 600 Kbps after customers used 50 GB. The state said a typical customer could reach the cap after about four days of use.
Access and information limits
The settlement says T-Mobile offered the required plans only at homes eligible for its 5G home internet service. That excluded residents in areas served only by 4G, according to the agreement.
The company also kept search engines from indexing the webpage with detailed eligibility and enrollment information. The settlement requires broader availability and easier access to plan details, with the changes due within 120 days.
Settlement without admission
The agreement concerns T-Mobile’s fixed wireless home internet service, which uses its cellular network to provide service at a single home location. It does not concern the company’s mobile plans.
T-Mobile did not admit or deny the findings listed by the New York attorney general. In a statement, the company said it was updating its plan to meet state requirements while keeping the same low price, and that the agreement would make the offering available to more eligible customers.
State law enforcement timeline
New York began enforcing the Affordable Broadband Act in January 2025, after a nearly four-year court battle with broadband industry groups seeking to block the law. The Supreme Court rejected the industry challenge, and the law took effect a month later.
The state investigation and settlement took almost 18 months. When contacted, T-Mobile did not explain why it had imposed the plan restrictions.
Key points
- New York says T-Mobile’s 50 GB monthly cap violated state broadband requirements for low-income households.
- After the allowance, the plan’s maximum download speed fell from 25 Mbps to 600 Kbps.
- The settlement requires T-Mobile to remove limits and widen plan availability within 120 days.
- T-Mobile neither admitted nor denied the findings and said it would update the plan.