- The ramifications of the FCC’s new restriction on foreign-produced consumer routers are starting to sink in
- It appears to lock out anyone that doesn’t make their routers in the U.S. – and that’s just about everyone
- Vendors are heavily reliant on China, Vietnam and Taiwan for manufacturing
Just when you thought it was safe to go back into the networking waters, the Federal Communications Commission (FCC) throws a curveball.
This one is directed squarely at the consumer-grade router industry. The FCC on Monday announced that all consumer-grade routers produced in foreign countries are banned from sale in the United States – unless the supplier applies for and receives a “Conditional Approval” from the Department of War (DoW) or the Department of Homeland Security (DHS).
Existing Wi-Fi routers and those that were previously approved by the FCC can continue to be operated and sold; the new mandate applies to new, upcoming devices.
The problem is, the FCC’s broad definition of “foreign produced” means that it will affect essentially all major broadband consumer-premise equipment (CPE) vendors, whether they operate though the service provider or retail channels, according to Counterpoint Research analyst Taimur Zafar.
“This is not just about where a router is assembled; it will include U.S.-branded devices that are designed, developed or materially produced abroad. Under this definition, all major Wi-Fi router vendors will be impacted, with supply chains beginning in countries such as China, Taiwan and Vietnam,” Zafar wrote on LinkedIn.
As such, Claus Hetting, CEO and chairman of Wi-Fi Now, predicts the FCC’s blanket ban will unleash a litany of damaging consequences.
“To our knowledge, consumer-grade Wi-Fi routers available in the U.S. are manufactured nearly exclusively in China, Taiwan and Vietnam. These include popular home networking products by major Wi-Fi router brands such as Netgear, TP-Link, Google Nest, eero, Ubiquiti and many others,” he wrote in his analysis.
“If one is to take the FCC’s blanket ban at face value, it would mean that all of the above will need somehow to move production to the U.S. in order to be able to continue to offer state-of-the-art Wi-Fi routers and mesh,” Hetting said.
The FCC explained that its decision came after the Executive Branch determined that foreign-produced routers introduce a “supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure and national defense” and pose a severe cybersecurity risk.
Consumer vs. enterprise Wi-Fi
The statements from the FCC didn’t say why consumer goods were more problematic than enterprise-level routers.
Hetting said it’s odd that enterprise devices were not included. “You can even argue that the security risk in enterprise is much more severe because if something goes wrong, that would have much more of an economic impact as opposed to what somebody at home with a TP-Link router might experience,” he told Fierce.
“If somebody would want to attack U.S. infrastructure, do you think they would go house to house and try to get in the back door of these $20 routers?,” he said.
Richard Bennett, founder of High Tech Forum, said enterprise Wi-Fi networks are more secure than residential networks because they use RADIUS (Remote Authentication Dial-In User Service) instead of WPA 2/3 Personal, which is the Wi-Fi protocol for home networks.
“The primary purpose of the new policy appears to be moving manufacturing to the U.S. on the pretext of enhancing security. All of that being said, the new policy isn't as nutty as it looks,” Bennett told Fierce.
Consumer routers are increasingly skipping Wi-Fi Alliance certification because neither consumers nor manufacturers can figure out how to enable the most advanced security and performance features in the Wi-Fi 7 and 8 standards, he said.
Wi-Fi vendors weigh in
Some of the major vendors managed to put positive spins on their official public statements.
TP-Link, one of the largest vendors in this space, pointed out that the FCC’s action appears to affect virtually all new consumer-grade routers seeking authorization to be sold in the United States.
But the company, which is being sued by Texas Attorney General Ken Paxton for alleged affiliation with Communist China, says the policy sets a new bar for the entire industry – and that’s good.
“Placing all manufacturers and their supply chains under the same scrutiny is a positive step in the direction of making the router industry more secure,” a TP-Link spokesperson said in a statement.
TP-Link says it’s well-positioned
If getting more products produced in the U.S. is the point, that’s already happening to some extent.
“TP-Link has been committed to making further investments in America and has already been planning to establish U.S.-based manufacturing to complement our existing company-owned facilities in Vietnam. TP-Link is well-positioned – in fact, possibly better positioned than any of its competitors – to succeed under the new guidelines and maintain its position as the leading U.S. vendor of secure network devices,” the company told Fierce.
Netgear: It’s a step forward
Netgear called the FCC’s move a step forward but didn’t explain how its manufacturing practices are going to change.
“We commend the Administration and the FCC for their action toward a safer digital future for Americans. Home routers and mesh systems are critical to national security and consumer protection,” the company said in a statement. “As a U.S.-founded and headquartered company with a legacy of American innovation, Netgear has long invested in security‑first design, transparent practices and adherence to government regulations, and we will continue to do so.”
In a statement provided to Fierce, Nokia said it’s continuing to assess what, if any, impact the FCC’s ruling may have on its future product lineup. The Finnish company opened a manufacturing facility in Pleasant Prairie, Wisconsin, in 2024.
Consumer price hikes expected
Hetting said it’s likely to take years for most Wi-Fi router manufacturers to establish U.S.-based manufacturing and in the meantime, rollout of the latest Wi-Fi technology will basically end.
That would be devastating to the U.S. leadership in home networking technology and will hike connectivity charges for consumers.
“It is a very, very high price to pay for hypothetical security risks, which – even if they do exist (which we doubt) – in the end may not be mitigated at all,” he concluded.