T-Mobile has agreed to remove the 50GB monthly data cap on its low-cost home internet plans in New York after state authorities found that the company was restricting internet speeds for eligible low-income households.
The agreement follows an investigation that found the carrier was not complying with the state's Affordable Broadband Act (ABA), which requires internet providers to offer affordable broadband services with guaranteed minimum speeds.
The settlement will also require T-Mobile to expand the availability of its discounted plans and make information about them easier for eligible customers to find.
Under the New York Affordable Broadband Act, eligible households must be offered home internet plans priced at USD 15 per month for speeds of at least 25Mbps or USD 20 per month for speeds of at least 200Mbps. These prices include taxes and equipment fees.
On the other hand, an inquiry made by the New York Attorney General’s office discovered that T-Mobile’s USD 15 monthly home internet package has a 50 GB monthly data cap. When users used up the data, their downloading speed decreased from 25Mbps to 600Kbps, meaning a reduction of more than 97%.
The information provided by the state officials suggests that an average user can use up all 50GB in about four days of regular internet usage and thus is left with much slower speeds for the remaining time of the month.
It was also discovered that T-Mobile limited the discounted packages only to homes that had 5G access while providing regular home internet access in some 4G regions and even set up its website in a way that search engines could not display the information about affordable packages.
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Under the agreement, T-Mobile will remove the data caps and ensure eligible subscribers receive the required minimum speeds, except during temporary network congestion. The company must also extend the discounted plans to every area where it offers residential fixed wireless internet services.
Additionally, T-Mobile will make its affordable broadband information accessible through search engines. The company has 120 days to implement the agreed changes.
T-Mobile said it was updating its plans to meet New York's requirements while maintaining the same low prices. However, it neither admitted nor denied the state's findings.
Importantly, the agreement applies only to eligible home internet plans in New York and does not change T-Mobile's mobile phone data plans.