The Federal Communications Commission this week updated its “Covered List” to include all consumer-grade routers that are made in foreign countries. Translated, that means the FCC decided to effectively ban all new consumer-grade routers from landing on our shores.
In a fact sheet, the commission said that the decision followed a determination by the Trump Administration that these foreign-made wireless networking devices “pose unacceptable risk to the national security of the United States or the safety and security of United States persons.” In particular, the Administration’s interagency body that reviews the national security strategy determined that these devices introduce a “supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure, and national defense,” and post “a severe cybersecurity risk that could be leveraged to immediately and severely disrupt U.S. critical infrastructure.”
It’s an extreme move by the Administration and the FCC, but one that does come after years of scrutiny over foreign manufacturers like TP-Link, which did have software embedded in its product that allowed Chinese state-sponsored attacks on their routers.
The first thought that comes to mind is that this could result in a massive shortage of new routers hitting stores and the CI channel. An industry source from an impacted manufacturer clarified to Connected Design that the ban is on new product models—meaning a router not on the market today that gets introduced post this list being updated.
In fact, knowing that the U.S. government has been investigating the TP-Link situation and passing legislation around it, the move this week is no surprise to those in the networking world who’ve been monitoring the news, the source told us. And you can expect brands who introduce new product to seek out exemptions from the list. (More on that below.)
Who’s Impacted?
Just about every major maker of wireless routers is impacted. The FCC said it is targeting specifically “consumer-grade” routers. But that effectively hits at all major brands, including several in the custom integration channel.
Here’s a quick list of brands that manufacture their routers overseas:
- Netgear
- Ubiquiti
- TP-Link
- Eero
- Araknis Networks
- Cisco
- Asus
- Google Nest
Conversely, here’s the list of brands that make routers here in the U.S.:
- Starlink
That’s it. Elon Musk’s SpaceX routers are the only ones made in America. (Edit: Post-publishing, we were reminded that Island Routers, a Perftech brand, are manufactured in Texas as well. So, make that a total of two routers made here in the U.S.)
There is some confusion and inconsistency around the ruling, too. The FCC’s updated “Covered List” does include exemptions for routers that the Department of Defense (or War) or Department of Homeland Security have granted “conditional approval” for, after determining that they pose no risk. Manufacturers can submit an application for conditional approval using the guidance document that was attached to the fact sheet, though, no estimation is given as to how long that process can take or what conditions must be met for the product to be deemed “safe.” An approved product is granted approval for a period of up to 18 months.
So, it seems like manufacturers have the option to either get new product in under this conditional approval process, or they can keep manufacturing their already approved product that’s here in the U.S. until they need to (possibly?) reapply for approval for said product.
Either way, more hurdles are now in place for the networking category, which already faces some other major headwinds in the form of tariffs and chip shortages. All of that spells likely price increases over the coming months.
