Starlink has brought high-speed internet to millions of rural Americans for the first time. It’s also one of the most expensive internet service providers in the country. So, how is it available in New York for just $15 a month?
If it wants to sell internet in the state, it doesn’t have a choice. That’s thanks to the Affordable Broadband Act, a New York state law passed in January.
The law says that major ISPs (those serving 20,000 households or more) operating in New York must offer plans starting at $15 per month with download speeds of at least 25Mbps to qualifying households, or a $20-per-month plan with minimum download speeds of 200Mbps.
That price must include “any recurring taxes and fees such as recurring rental fees for service provider equipment required to obtain broadband service and usage fees.”
Some providers, like AT&T, chose to pull out of the state entirely rather than offer the discounted prices that New York’s law requires.
Households are eligible for these plans if they have an annual income up to 185% of the federal poverty level — $59,477.50 for a family of four — or if they participate in programs like the National School Lunch Program, Medicaid or SNAP.
Starlink published an FAQ page on its website in June detailing its New York Affordable Broadband Service Plan, which was first reported by PCMag. (PCMag is owned by the same parent company as CNET, Ziff Davis.) Customers will still have to pay for $349 upfront, however, which will likely be an insurmountable cost for many lower-income households.
Like the country as a whole, affordability is the main barrier to internet adoption in New York. According to 2023 data from the Benton Institute for Broadband & Society, nearly 30% of households making under $35,000 per year do not have internet in the state, compared with 13% for households earning between $35,000 to $75,000 and only 4% for households earning over $75,000.
But access to fast and reliable internet is still a challenge for many people in rural New York. The most recent FCC data shows that about 3% of homes in New York don’t have access to the FCC’s definition of minimum broadband speeds: 100Mbps download and 20Mbps upload.
Representatives for Starlink didn’t respond to a request for comment.
Source: CNET
