Court upholds New York law that says ISPs must offer $15 broadband
Scope of the NY Low-Cost Broadband Law
- ISPs must offer 25 Mbps for ≤$15/month and 200 Mbps for ≤$20/month to customers who already qualify for means‑tested programs (Medicaid, free school lunch, etc.).
- Small ISPs (<20,000 customers) can be exempt; some worry firms will game this with shell companies, others argue courts and future amendments can close such loopholes.
- Some see $15 as modest and ask “why not just make it free?”; others note $180/year is meaningful and preserves some market signal.
Can ISPs Profit at $15?
- Debate on costs: some say $15 can cover marginal costs if infrastructure is already in place, especially in dense areas; others argue it cannot cover ongoing maintenance, support, and capex recovery.
- Several note ISPs have repeatedly received public subsidies for last‑mile buildout and often failed to deliver promised infrastructure.
- Examples from other countries (UK, EU, Australia) show lower retail prices and regulated wholesale access as evidence that cheaper service is technically and economically feasible.
Infrastructure, Natural Monopoly, and Ownership Models
- Many argue wired broadband is a “natural monopoly” similar to roads or power lines; only so many poles, ducts, and rights‑of‑way exist.
- One camp: government should own fiber/ducts as a neutral utility and let ISPs compete on top (common‑carrier model).
- Others prefer fully municipal ISPs; critics counter with stories of under‑invested, cost‑cutting public networks.
- Comparisons to rail and power: government‑owned infrastructure plus private operators is portrayed as more effective than privatized infrastructure with weak regulation.
Price Controls, Competition, and Historical Analogies
- Skeptics see this as dangerous price control that can lead to underinvestment and eventual public bailouts, citing US streetcars, subways, and 1970s gas controls.
- Supporters point to EU price caps on roaming and card fees as working examples where competition failed.
- Some suggest instead auctioning access to limited pole/duct space, then using revenue or direct cash transfers to support low‑income users.
Access, Rights, and Alternatives
- Many treat broadband as essential infrastructure like electricity.
- Libraries already provide free internet, but are seen as insufficient for “convenient” or home‑based access.
- Cellular and fixed‑wireless are mentioned as alternatives, but often lack the reliability or capacity of wired broadband.