Governor Hochul Announces Settlement to Provide Discounted Broadband to Low-Income New Yorkers
(Aug. 20, 2024) On Aug. 15th, Governor Kathy Hochul announced that the NYS Public Service Commission (PSC) had reached a settlement with Charter Communications, Inc., parent company of broadband provider Spectrum – which operates in 58 of the state’s 62 counties – requiring the communications company to provide discounted broadband service to low-income customers either enrolled in the National Free School Lunch Program or receiving Supplemental Security Income (SSI) benefits.
The PSC’s enforcement settlement with Charter follows an earlier merger order which had a number of enforceable public interest conditions, including a condition that Charter offer a low-income broadband program with download speeds of at least 30 Megabits per second (Mbps) for $14.99 per month. The NYS Department of Public Service (DPS) alleged that Charter increased the price of its low-income broadband program to $24.99 per month at a higher speed of 50 Mbps without PSC approval, in violation of the 2016 merger order. The company disputed the allegations.
The settlement will require Charter to re-establish the program at $15 per month for 50 Mbps download speed for four years to New Yorkers enrolled in the National Free School Lunch Program or receiving SSI benefits. For years two through four of the program, Charter cannot raise the price by more than the rate of inflation as measured by the U.S. Bureau of Labor Statistics’ Consumer Price Index.
“Ongoing litigation has delayed implementation of the State’s Affordable Broadband Act, and the federal Affordable Connectivity Program (ACP) has expired,” said PSC Chair Rory M. Christian. “By approving this settlement, the PSC will make affordable broadband available to eligible New Yorkers in Charter’s service territory while the litigation is resolved and/or federal funding for [the] ACP is reinstated or federal broadband policy is clarified.”
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866