In a 2-1 decision on Friday, the 2nd U.S. Circuit Court of
Appeals in Manhattan said federal telecommunications law dating
to the Great Depression did not pre-empt states from regulating
broadband rates.
"Congress intended for the states to retain their regulatory
authority over many interstate communications services - and to
play a role in regulating the rates charged for such services -
unless it said otherwise," Circuit Judge Alison Nathan wrote.
The majority also said a 2018 Federal Communications Commission
order classifying broadband as an information service stripped
that agency of authority to regulate rates.
New York's first-in-the-nation law required broadband providers
to offer plans as low as $15 a month, benefiting an estimated 7
million New Yorkers in 2.7 million households.
It was signed in April 2021 by former Governor Andrew Cuomo,
after the COVID-19 pandemic forced many students and employees
to work from home.
U.S. District Judge Denis Hurley in Central Islip, New York,
blocked enforcement two months later. Friday's decision set
aside his injunction.
The law had been challenged by several trade groups including
CTIA-The Wireless Association, on behalf of internet providers
such as AT&T and Verizon.
In a joint statement, the groups said Friday's decision "not
only discourages the needed investment in our nation's
infrastructure, but also potentially risks the sustainability of
broadband operations in many areas. We urge Congress to maintain
support for low-income Americans on a nationwide basis."
The office of New York Attorney General Letitia James defended
the law. It had no immediate comment.
The case is New York State Telecommunications Association Inc et
al v. James, 2nd U.S. Circuit Court of Appeals, No. 21-1975.
(Reporting by Jonathan Stempel in New York; Editing by Matthew
Lewis)
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