The Federal Communications Commission has prohibited the sale of new residential internet routers fabricated outside the US, citing national security concerns. This directive does not impact any routers currently installed in American residences or presently available for purchase in the US, but all forthcoming routers intended for the consumer market will necessitate authorization.
While the primary announcement is that externally produced residential routers are forbidden, manufacturers retain the option to seek waivers. There’s no compulsion to discard your current router, and you’ll still encounter numerous mesh systems on retail shelves. However, what implications does this hold for you?
Why Are Foreign-Made Routers Prohibited?
“Nefarious actors have leveraged security vulnerabilities in foreign-made routers to target American households, disrupt networks, facilitate espionage, and aid in intellectual property theft,” the FCC stated. “Externally produced routers were also implicated in the Volt, Flax, and Salt Typhoon cyberattacks aimed at crucial US infrastructure.”
Routers for residential use, manufactured abroad, were incorporated into the Covered List, which enumerates equipment and services “considered to present an intolerable risk to the national security of the United States.”
Which Routers Are Prohibited?
The prohibition solely pertains to the distribution of novel Wi-Fi routers designed for household use. It does not extend to existing FCC-approved routers available for sale in the US. Previously acquired routers already operational in homes nationwide are also permissible and fall outside the scope of the ban, as per the FCC’s FAQ. These devices can continue to be marketed, utilized, and upgraded with new firmware.
Any new router produced beyond the US now necessitates FCC authorization before it can be imported, promoted, or sold within the US. This encompasses routers from US-based corporations that are manufactured overseas, which currently represents the vast majority of the market.
What Does Externally Produced Mean?
This aspect is notably ambiguous. The prohibition focuses on “consumer-grade” routers and might include any conceived or fabricated outside the US, or manufactured by firms not wholly US-owned and operated. All the prominent entities in the sector, including Netgear, TP-Link, Asus, Amazon’s Eero, Google’s Nest, Synology, Linksys, and Ubiquiti, are encompassed by this definition. The same applies to most, if not all, of the routers furnished by internet service providers in the US.
Similar to the recent federal drone prohibition, this router ruling applies exclusively to new routers, yet manufacturers are able to petition for Conditional Approval from the Department of Defense and the Department of Homeland Security. Applications must disclose information concerning proprietorship, board composition, and the provenance of components, intellectual property ownership, design, assembly, and firmware, among other details. The concluding part seeks specifics on the applicant’s US production and reshoring strategy, signaling a clear impetus to encourage companies to commit to producing their routers domestically.
“To date, no routers or manufacturers have been granted Conditional Approval, but as the procedure commences, we anticipate approvals will be issued promptly,” an FCC spokesperson informed WIRED.
What About Externally Produced Components?
The FCC offers some elucidation in its FAQ (“covered” here signifies prohibited):
“Non-‘covered’ devices are not rendered ‘covered’ merely by virtue of incorporating a ‘covered’ component part, unless the ‘covered’ component part is a modular transmitter under the FCC’s regulations,” it states. “Consequently, a router fabricated in the United States is not deemed ‘covered’ equipment solely due to the presence of one or more foreign-made components.”
Manufacturers sourcing components from China but undertaking assembly in the US will likely be acceptable, though this remains quite unclear. “Applicants will be required to possess adequate proof that the routers were not produced in a foreign nation to achieve this certification, yet no precise documentation or evidence is mandated,” according to the FCC.
Let’s now examine the top three US router brands and their potential impact.
Will TP-Link Be Prohibited?
Given that all of its routers are produced overseas, TP-Link will either need to seek Conditional Approval or establish manufacturing operations in the US to distribute any new routers. Figures differ, but TP-Link’s US residential router market share is approximately 35 percent, with Netgear and Asus making up an additional 25 percent or so.
The US Commerce, Defense, and Justice departments have reportedly been scrutinizing and contemplating a prohibition on TP-Link routers for over twelve months due to worries regarding the company’s ties to China. No such ban had been implemented until now, but Texas attorney general Ken Paxton initiated a lawsuit against TP-Link in February, asserting the company permits the Chinese Communist Party to gain entry to American consumers’ devices. Critics have also censured alleged aggressive pricing strategies, claiming TP-Link saturated the US market with a diverse array of inexpensive routers to secure market leadership.
TP-Link has consistently refuted any misconduct and asserts it has separated from its Chinese origins, now being based in the US with the majority of production occurring in Vietnam. TP-Link’s cofounder and CEO, Jeffrey Chao, recently sought permanent US residency via President Trump’s Gold Card program, as reported by the Times of India.
“Nearly every router is fabricated beyond the United States, including those manufactured by US-based firms like TP-Link, which produces its goods in Vietnam,” a TP-Link spokesperson told WIRED. “It appears that the entire router sector will be affected by the FCC’s declaration concerning new devices not formerly approved by the FCC.”
TP-Link is a privately held corporation and is not publicly traded on any stock exchange. Chao and his spouse, Hillary, are listed as the firm’s exclusive proprietors.
Will Netgear Be Prohibited?
While it is a company established and based in the US, Netgear’s routers are produced overseas, predominantly in Vietnam, Thailand, Indonesia, and Taiwan, thus necessitating it to seek Conditional Approval. The company has shifted its production away from China in recent times. Netgear has been advocating to the government regarding “cybersecurity and geopolitical rivalry with China.”
“We applaud the administration and the FCC for their measure toward a more secure digital future for Americans,” a Netgear spokesperson told WIRED. “Home routers and mesh systems are vital for national defense and safeguarding consumers, and today’s ruling marks an advancement.”
Netgear is a publicly listed entity on the Nasdaq, largely held by corporate shareholders, including BlackRock and Vanguard. The company’s stock saw an increase following news of the prohibition, indicating that many investors believe it will not be severely impacted.
Will Asus Be Prohibited?
Asus chiefly produces its routers in Taiwan, although it maintains manufacturing sites in China and collaborates with several external producers. Recent import duties prompted the firm to diversify production to Thailand, Vietnam, Indonesia, Mexico, and the Czech Republic, yet the majority of its devices still originate from Taiwan or China. Asus will be compelled to seek Conditional Approval to vend new routers. The company offered no reply to WIRED’s inquiry for input.
The company is traded on the Taiwanese Stock Exchange and is largely possessed by public shareholders. The prohibition does not seem to have affected its stock price.
Are Any Routers Fabricated in the US?
The sole routers I am aware of that are produced in the US are certain Starlink Wi-Fi routers, which are primarily assembled in Texas. Starlink is a division of Elon Musk’s SpaceX company, but numerous constituent parts in these routers originate from East Asia.
How Will the Router Prohibition Impact Ordinary Citizens?
It is somewhat uncertain, but in the immediate future, it likely won’t significantly affect them. A diverse selection of Wi-Fi 7 routers and mesh systems are already available on the market and will remain on offer—they permit transfer rates far surpassing what most people require at home. In the long run, whether companies initiate production in the US or discover alternative methods to appease government agencies that their products pose no security threat, the probable outcome will be elevated costs for consumers. If you haven’t transitioned to the newest Wi-Fi 7 standard, now might be an opportune moment to do so.
Unresolved Queries
The prohibition does pose numerous unresolved queries. Why is it exclusively targeting residential routers? Which routers or manufacturers will be issued a Conditional Approval? Why are the externally produced routers presently available for sale and in our homes considered secure? The FCC failed to respond to these questions.
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