T-Mobile forced to remove data caps and stop throttling home internet speeds in New York
Dealer takeaway: This is a big moment for home internet trust. New York alleges T-Mobile’s low-income $15 home internet plan didn’t meet state requirements due to a data cap and heavy throttling. The agreement forces clearer availability and terms. Dealers should use this as a “bill clarity + eligibility + expectations” conversation—especially for customers shopping on price and for households that stream, work from home, or rely on stable connectivity.
What the Affordable Broadband Act requires in New York
T-Mobile reached an agreement with the State of New York regarding its home internet service for eligible households under the state’s Affordable Broadband Act (ABA). The ABA requires participating providers to offer eligible households either:
$15/month service with speeds of at least 25 Mbps, or
$20/month service with speeds of at least 200 Mbps
New York’s allegation: throttling after a 50GB cap
New York Attorney General Letitia James said her office found that T-Mobile failed to meet ABA requirements and instead intentionally throttled data speeds for subscribers on the $15/month service.
According to the allegations, the $15/month plan had a 50GB/month data cap, and once customers hit that limit, download speeds were reduced by 97% to 650 Kbps.
Other allegations: plan discoverability and coverage limitations
The Attorney General also alleged:
T-Mobile coded its website in a way that made ABA pricing almost impossible to find via searches for low-priced internet service.
T-Mobile limited sales of the $15 plan to areas with 5G coverage, even though it offered home internet in some areas with 4G coverage.
What T-Mobile agreed to change
As part of the agreement with New York, T-Mobile agreed to:
Remove data caps for ABA home internet subscribers
Provide 25 Mbps service to all ABA subscribers, unless network congestion forces temporary speed reductions
Offer ABA plans in all areas in New York where it offers home internet
Ensure its ABA plan website is discoverable by search engines
A T-Mobile spokesperson said the company is updating its plan to meet the state’s requirements while maintaining the same low price, and that the agreement provides greater clarity and expands availability to more eligible customers.
Who qualifies for ABA pricing (examples listed)
New Yorkers may apply for an ABA home internet plan if one member of the household receives one or more of the following benefits:
Medicaid
Supplemental Nutrition Assistance Program (SNAP)
Home Energy Assistance Program (HEAP) or a baseline utility affordability benefit
Free or reduced-price school lunch through the National School Lunch Program
Senior Citizen Rent Increase Exemption or Disability Rent Increase Exemption (SCRIE/DRIE)
The article also notes that households might still qualify based on income even if they are not enrolled in one of the listed benefit programs.
Dealer playbook: how to turn this into customers you keep (and help)
1) Lead with transparency (avoid “gotcha” selling)
Confirm the customer’s address eligibility and coverage reality
Explain what “temporary reductions during congestion” can mean in real life
Set expectations for streaming, gaming, and work-from-home usage
2) Offer an “Affordable Internet Setup” service
Gateway placement + Wi‑Fi optimization
Streaming test checklist (HD/4K readiness)
30-day follow-up performance check
3) Add a “first-bill + terms audit”
Low-income plans are often the most sensitive to surprise fees and unclear terms. A quick audit reduces churn and complaints.
Relevant vendor resources (WDG Directory)
Internet Service Providers (compare alternatives by address)
Mobile Electronics (routers, mesh, Wi‑Fi accessories)
Business Services (billing support and customer service tools)
Bottom line
New York’s agreement with T-Mobile forces clearer, broader access to ABA home internet pricing and removes the alleged data cap/throttling behavior for the $15 plan. Dealers can win by being the “clarity layer”: eligibility help, transparent expectations, and setup support that keeps customers connected.
.webp)
Comments