T-Mobile agrees to end 50GB cap on New York low-income home internet plan
New York said T-Mobile’s low-cost home internet plan broke state rules; the carrier agreed to remove caps and widen access.
By Hana Yoshida · Markets Reporter
3 min read
T-Mobile has agreed to remove a 50GB limit from a low-income home broadband plan in New York after a state investigation found the offering did not meet legal requirements. The dispute over the T-Mobile 50GB low-income internet cap concerns fixed-wireless service for homes, not the company’s mobile-phone plans.
Governor Kathy Hochul and Attorney General Letitia James announced the settlement on Monday. New York alleged that T-Mobile’s $15 plan imposed a monthly 50GB allowance and cut maximum download speeds to up to 600 Kbps after a customer used it, far below the speed required for the plan under the state’s Affordable Broadband Act.
What did T-Mobile agree to change in New York?
Under the agreement, T-Mobile must eliminate data caps and intentional speed limits on its Affordable Broadband Act plans. It also must make those plans available at every address where it offers residential fixed-wireless internet and must stop preventing search engines from indexing its plan-information page, according to New York’s settlement terms.
The state said T-Mobile had offered the discounted plan only in areas served by its 5G home internet service, even though the company offered home internet in some places using 4G/LTE. Officials also alleged that T-Mobile had made information about the plan difficult to find by blocking search-engine indexing.
Ars Technica reported that the agreement gives T-Mobile 120 days to end the speed limits and expand plan availability. The agreement separately requires the company to eliminate the data cap.
T-Mobile neither admitted nor denied the Office of the Attorney General’s findings in the settlement. In a statement reported by WGRZ, the company said it was updating the plan to comply with state requirements while keeping the price unchanged and making it available to more eligible customers.
What does New York’s Affordable Broadband Act require?
The law requires covered home-internet providers to offer eligible households service for $15 a month with download speeds of at least 25 Mbps, or a $20 plan with speeds of at least 200 Mbps. The low-cost service is available to qualifying households based on income or participation in programs including Medicaid, SNAP, HEAP, free or reduced-price school lunch, and SCRIE or DRIE, according to WGRZ.
The settlement does not guarantee 25 Mbps in every circumstance. It permits temporary speed reductions caused solely by network congestion. It also allows lower speeds at an address where T-Mobile cannot provide 25 Mbps to a customer on a comparable non-discounted fixed-wireless plan.
Fixed wireless uses a carrier’s cellular network to provide internet at one home location through receiving equipment, rather than through a traditional wired connection. New York’s inquiry began after the Department of Public Service referred concerns to the attorney general’s office in June 2025, Ars Technica reported.
This story draws on original reporting from Ars Technica.