Federal Communications The commission has banned new consumer internet routers made outside the US, citing national security reasons. The ban does not affect any routers already in US homes or currently sold in the US, but all new routers aimed at the consumer market will need to be approved.
Although the headline is that foreign-made consumer routers are banned, manufacturers can apply for an exemption. There’s no need to throw away your router, and you’ll still find plenty of mesh systems on store shelves. But what does this mean for you?
Why Are Foreign Routers Banned?
“Malicious actors have used security flaws in foreign-made routers to attack American households, disrupt networks, facilitate espionage, and facilitate the theft of intellectual property,” The FCC wrote. “Foreign-made routers were also involved in Volt, Flax, and Salt Cyclone cyber attacks targeting critical US infrastructure.”
User routers made by guests were added to List coveredwhich defines facilities and services “considered to pose an unacceptable risk to the national security of the United States.”
Which Ways Are Prohibited?
The ban only affects the sale of new Wi-Fi routers aimed at consumer households. This prohibition does not apply to FCC-certified routers sold in the United States. Pre-purchased routers already in use in homes across the country are also fine and not part of the ban, according to FCC Frequently Asked Questions. These routers can continue to be sold, used and updated with new firmware.
A new router manufactured outside the United States now requires FCC approval before it can be imported, sold, or sold in the United States. This includes routers from American companies that are manufactured overseas, which are a large part of the market right now.
What Does Outsourcing Mean?
This is a very difficult thing. The ban applies to “consumer-grade” routers and could include any that are designed or manufactured outside the United States or manufactured by companies that are not wholly owned and operated by the United States. All the major players in the market, including Netgear, TP-Link, Asus, Amazon’s Eero, Google’s Nest, Synology, Linksys, and Ubiquiti, are under the definition. Like most, if not all, of the routers offered by internet service providers in the US.
Just like the recent federal drone banrouter only applies to new routers, but manufacturers can apply Conditional Approval from the Department of Defense and the Department of National Security. Applications must include information about ownership, board membership, and country of origin for features, IP ownership, design, integration and firmware, among other things. The last section asks for details of the applicant’s US manufacturing and shipping plan, so there is a clear push to convince companies to commit to manufacturing their routers in the US.
“No routers or manufacturers have been granted Conditional Approval to date, but as the process continues, we expect approvals to be issued in due course,” an FCC spokesperson tells WIRED.
What About Outsourced Components?
Well, the FCC provides some clarification in its own Frequently Asked Questions (“covered” here means prohibited):
“Non-‘covered’ devices cannot be ‘covered’ simply because they have a ‘covered’ part, unless the ‘covered’ part is a modulator transmitter under FCC rules,” it says. “Thus, a router manufactured in the United States is not considered a ‘covered’ device simply because it contains one or more foreign-made components.”
Manufacturers that import components from China but assemble them in the US may be fine, though it’s unclear. “Applicants will need to have sufficient evidence that the routers were not issued in a foreign country to make this verification, but no specific documentation or evidence is required,” according to the FCC.
Let’s take a look at the three biggest brands of US routers and see how they are affected.
Will TP-Link Be Banned?
Since all of its routers are manufactured overseas, TP-Link will have to apply for Conditional Approval or switch manufacturing to the US to sell the new routers. Estimates vary, but TP-Link’s US consumer router market share is around 35 percent, with Netgear and Asus accounting for 25 percent or more.
The Departments of Commerce, Defense and Justice of the United States are reported to be investigating and considering banning TP-Link routers for more than a year on concerns about the company’s relationship with China. No ban has been passed so far, but the Texas attorney general Ken Paxton sued TP-Link in February, claiming the company is allowing the Chinese Communist Party to access the devices of US users. Opponents have also criticized the seemingly deceptive pricing, claiming TP-Link flooded the US market with a range of cheap routers to establish dominance.
TP-Link has repeatedly denied any wrongdoing and claims it has separated from its Chinese roots and is now headquartered in the US with many factories in Vietnam. The founder and CEO of TP-Link, Jeffrey Chao, recently applied for US permanent residency through President Trump’s Gold Card program, according to Times of India.
“Almost all routers are manufactured outside of the United States, including those produced by American companies such as TP-Link, which manufactures its products in Vietnam,” a spokesperson from TP-Link tells WIRED. “It looks like the entire router industry will be affected by the FCC’s announcement of new non-FCC approved devices.”
TP-Link is a privately held company and is not publicly listed on any stock market. Chao and his wife, Hillary, are listed as the sole owners of the company.
Will Netgear Be Banned?
Although it is a US-based company, Netgear routers are manufactured overseas, mainly in Vietnam, Thailand, Indonesia and Taiwan, so it will have to apply for Conditional Approval. The company has moved out of China in recent years. Netgear has been convincing government on “cyber security and strategic competition with China.”
“We applaud the administration and the FCC for their step toward a secure digital future for Americans,” a Netgear spokesperson told WIRED. “Home routers and mesh systems are critical to national security and consumer protection, and today’s decision is a step forward.”
Netgear is a publicly traded company on the Nasdaq, mostly owned by institutional investors, including BlackRock and Vanguard. The the company’s shares rose on news of the ban, suggesting that many investors believe it will not be significantly affected.
Will Asus Be Banned?
Asus primarily manufactures its routers in Taiwan, although it has production facilities in China and works with several third-party manufacturers. Recent tariff pressures have led the company to move to Thailand, Vietnam, Indonesia, Mexico and the Czech Republic, but most of its routers still come from Taiwan or China. Asus will have to apply for Conditional Approval to sell the new router. The company did not respond to WIRED’s request for comment.
The company is listed on the Taiwan Stock Exchange and is mostly owned by public shareholders. The ban does not appear to have affected its share price.
Are All Paths Made in the USA?
The only routers I know of that are made in the US are some of the Starlink Wi-Fi routers, which are basically made in Texas. Starlink is part of Elon Musk’s SpaceX company, but most of the components in these routers come from East Asia.
How Will Router Bans Affect Common People?
It’s not entirely clear, but in the short term it probably won’t have a big impact. There is already a range of 7 Wi-Fi routers and mesh systems in a market that will continue to be sold—they enable speeds well beyond what most people need at home. In the long run, whether companies set up manufacturing in the United States or find other ways to satisfy government agencies that their products are not a safety hazard, the result may be higher prices for consumers. If you haven’t got the latest version Standard Wi-Fi 7now might be a good time to do it.
Unanswered Questions
The ban leaves several questions unanswered. Why does it only apply to consumer routers? Which routers or manufacturers will be granted Conditional Approval? Why are routers manufactured by foreign countries currently being sold and considered safe in our homes? The FCC did not respond to these questions.
