Legal settlement requires T-Mobile to remove data caps on low-cost internet plans in New York
Authorities in New York State have announced a legal settlement with T-Mobile, requiring the company to eliminate data and speed restrictions it had been imposing on home internet services for low-income households. This decision follows an investigation by the state that revealed the company violated the Affordable Broadband Act (ABA).
Details of the violations
The investigation showed that T-Mobile was imposing a 50GB monthly data cap on low-cost internet plans, which would throttle connection speeds from 25 Mbps down to 600 Kbps once the limit was exceeded. Officials noted that an average customer could reach this cap within just four days of use.
Additionally, the investigation uncovered other practices used to restrict access to these plans, including:
- Limiting plan availability only to areas covered by 5G networks, excluding areas that rely on 4G networks.
- Deliberately preventing search engines from indexing the webpage for ABA plans, making it difficult for eligible users to find these offers.
What changes in practice?
Under the settlement, T-Mobile is committed to the following:
- Eliminating data and speed restrictions on low-cost internet plans within 120 days.
- Expanding the availability of these plans to include all addresses where the company offers fixed wireless home internet service, regardless of network type (4G or 5G).
- Improving the transparency of access to plan information on its website, including removing noindex tags and placing clear links to the plans on standard internet offer pages.
It is worth noting that T-Mobile did not admit to any legal wrongdoing as part of the settlement, but it confirmed its commitment to updating its plans to meet state requirements while maintaining low prices. This settlement comes within a broader context of regulatory oversight, as the company agreed last month to another settlement regarding the violation of price guarantee promises for mobile plans, reflecting an increasing trend by New York State to enforce strict compliance with consumer protection laws in the telecommunications sector.