The U.S. Supreme Court rejected a broadband industry appeal and let New York become the first state to cap rates for low-income households, reports Bloomberg. Without comment, the high court refused to consider industry arguments that a federal telecommunications law precludes New York and other states from regulating the rates charged for internet service. Business groups told the court that other states are now likely to follow New York’s lead, creating a patchwork of rules around the country.
NTCA–The Rural Broadband Association, ACA Connects, CTIA, New York State Telecommunications Association, Satellite Broadcasting & Communications Association and USTelecom jointly stated: “Today’s decision leaves in place harmful rate regulations that will undermine the effective delivery of broadband services and discourage investment in broadband networks, particularly in unserved and underserved areas. We will continue to advocate for policies that support and sustain broadband access and protect the competitive marketplace that benefits all Americans.”
The New York law was on hold during the court fight. It will cap rates for qualifying low-income households at $15 per month, or $20 for higher-speed service. The New York-based 2nd U.S. Circuit Court of Appeals upheld the law on a 2-1 vote.
The appeals court ruling “threatens to spark a nationwide, state-by-state race to dictate the prices at which broadband service is sold to consumers,” industry groups led by the New York State Telecommunications Association told the Supreme Court in their unsuccessful appeal.
New York Attorney General Letitia James urged the Supreme Court to reject the appeal, Bloomberg reports. “The 2nd Circuit properly rejected petitioners’ remarkably sweeping argument that Congress intended to preempt states from regulating the entire field of interstate communications services,” James argued.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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