Spectrum required to provide cheaper service to low-income NY customers

Low-income Spectrum customers in New York must receive discounted broadband service for the next four years as part of a settlement recently reached between the communications company and the state.

Charter Communications, Spectrum's parent company, reached an agreement with the state's Public Service Commission, which requires the largest cable provider in the state to provide discounted broadband service to its customers who receive Supplemental Security Income (SSI) benefits or partake in the National Free School Lunch Program, Gov. Kathy Hochul announced Thursday.

“My administration has been steadfast in its commitment to expand internet service to all New Yorkers, and this settlement directly benefits thousands of low-income New York families,” Hochul said. “Broadband is crucial to driving economic growth and opportunity for all of our citizens, and we will continue our efforts to provide broadband access across the state.”

Charter operates in 58 of the state's 62 counties, according to Hochul's office.

Here's what to know.

What the settlement entails

Charter was already required to offer a low-income broadband program through a 2016 merger order, which included download speeds of at least 30 Megabits per second (Mbps) for $14.99 per month. However, the state Department of Public Service alleged the communications company increased the price of program to $24.99 per month at a higher speed of 50 Mbps without approval from the state's Public Service Commission.

Through the settlement, Charter is required to re-establish the program at $15 per month for 50 Mbps download speed for four years to New Yorkers in the National Free School Lunch Program or receiving SSI benefits. For years two through four of the program, the company can't raise the price by more than the rate of inflation as measured by the Bureau of Labor Statistics' Consumer Price Index beginning in the second year of the program.

"Charter is a leader in delivering life-changing high-speed internet service to low-income families, having helped millions of low-income households and seniors get and stay connected to the internet," a Spectrum representative said Monday. "We offer a variety of affordable high-speed internet packages to meet our customers’ connectivity and budget needs and customers can save hundreds – if not thousands – of dollars a year by switching to Spectrum Mobile. Our prices and speeds are competitive and affordable, regardless of whether a customer lives in an urban, suburban, or rural community – all with no modem fees, no annual contracts, and no data caps."

What to know: NY to require internet providers to offer low-cost internet option

Why this settlement is important

The Affordable Connectivity Program (ACP), which ensured households could afford broadband internet by providing those eligible with up to $30 per month toward internet service and a one-time discount of up to $100 to purchase a laptop, desktop computer or tablet from participating programs, stopped accepting applications and enrollments in February due to funds being used up.

Over 1.7 million New York households relied on the program, according to U.S. Senator Kirsten Gillibrand, and without it, families are forced to either pay full price for internet — which isn't possible for many — or lose access to broadband services completely.

Gillibrand is advocating for the passage of the Secure and Affordable Broadband Extension Act, which would provide $6 billion for the ACP, allowing it to continue through possibly the end of the year, according to Gillibrand's office. Hochul has also encouraged the federal government to extend the program.

A federal appeals court upheld New York's ability to enforce the Affordable Broadband Act in May, which would require internet service providers operating in New York to offer broadband internet to qualifying households at reduced prices. That means those providers may be forced to offer qualifying consumers broadband at no more than $15 per month of service of 25 megabits per second (Mbps) or $20 per month for high-speed service of 200 Mbps.

But, the state is currently considering the effects of the act on all parties involved.

“Ongoing litigation has delayed implementation of the State’s Affordable Broadband Act, and the federal Affordable Connectivity Program (ACP) has expired," the state's Public Service Commission chair Rory M. Christian said. "The only low-income broadband requirements that currently exist in New York are the low-income program conditions in the PSC’s orders approving certain mergers.

"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 ACP is reinstated or federal broadband policy is clarified.”

Emily Barnes is the New York State Team consumer advocate reporter for the USA TODAY Network. Follow her on Twitter and Instagram @byemilybarnes. Get in touch at ebarnes@gannett.com.

This article originally appeared on Rochester Democrat and Chronicle: Spectrum required to provide cheaper service to low-income NY customers