T-Mobile Caught Throttling Speeds on New York's Affordable Broadband Plans

New York’s attorney general has forced T-Mobile to stop throttling internet speeds on plans designed to help low-income residents access affordable broadband. The investigation revealed the wireless carrier was systematically limiting the effectiveness of its Affordable Broadband Act (ABA) offerings in ways that directly contradicted the law’s intent.

Throttling and Data Caps That Made Plans Nearly Useless

Under New York’s ABA, eligible households should be able to get broadband at 25 Mbps for $15 monthly or 200 Mbps for $20 monthly, with no hidden fees or equipment charges. T-Mobile technically offered these prices but made them almost worthless by placing aggressive data caps on the plans. Once customers used 50GB of data, speeds would plummet to as low as 650 kilobits per second, rendering the service practically unusable for streaming, video calls, or basic browsing.

For context, 50GB sounds like a lot until you realize typical broadband usage can burn through that in about four days. A household video call or streaming session could easily consume gigabytes. This throttling essentially meant low-income customers paying $15-20 monthly would hit the speed limit almost immediately, defeating the entire purpose of the affordable plan.

Geographic Discrimination and Hidden Information

The investigation uncovered additional barriers T-Mobile had erected. The company was only offering ABA plans in areas where it had already deployed 5G wireless coverage, significantly limiting which New Yorkers could access the affordable option. This geographically restrictive approach contradicted both the spirit and letter of the law.

Maybe most telling was T-Mobile’s approach to search engine visibility. The company was actively preventing search engines from indexing information about these ABA plans on its website. This wasn’t a technical oversight but rather a deliberate strategy to keep eligible customers from discovering the plans existed. It’s difficult to enroll in a program when you can’t even find it online.

What Changes Now

Following the investigation, T-Mobile has agreed to meaningful changes. Data caps on ABA plans are gone entirely. The company will make these plans available wherever it offers home internet service across New York, not just in 5G-covered areas. Search engines can now index and promote the plan information, making it discoverable to customers who need it.

Attorney General Letitia James framed this as a victory for vulnerable New Yorkers. “Reliable and affordable internet service is a basic need for all New Yorkers, but T-Mobile flouted the law designed to help vulnerable New Yorkers access it,” she said in a statement.

T-Mobile’s Response

When reached for comment, T-Mobile acknowledged the changes while framing them as enhancements rather than admissions of wrongdoing. “We’ve reached an agreement with the New York Attorney General that builds on that commitment, provides greater clarity around our offering and makes the plan available to more eligible customers,” the company said.

The resolution shows how regulation can actually work when enforced. Without oversight, companies naturally optimize for profit rather than public interest. T-Mobile’s initial approach to the ABA demonstrated this perfectly: offer cheap plans on paper while making them practically useless through fine print restrictions and geographic limitations.

This case matters beyond New York because other states are watching. As broadband access increasingly determines economic opportunity and social participation, affordable access programs become critical infrastructure. When carriers undermine these programs through technical restrictions and obfuscation, they’re not just gaming regulators - they’re directly harming the communities these laws were meant to protect.

The bigger question is whether this enforcement action will encourage better behavior elsewhere, or if companies will simply get more creative about hiding the restrictions they impose on discount plans.

Based on reporting from Engadget