Wi-Fi Router Prices May Rise After FCC Ban
You probably don’t think much about your Wi-Fi router — until it stops working, that is. But new government policy could make its replacement more expensive.
The Federal Communications Commission has banned the sale of some foreign-made routers due to national security concerns, a move that could limit supply and raise prices for American consumers. In a statement on Monday, FCC chairman Brendan Carr said the move follows a decision that some foreign-made routers pose an “unacceptable risk,” adding to the agency’s list of restricted devices.
However, that can be a bigger problem than it sounds because most of the Wi-Fi routers sold in the US are not home made to begin with.
In an email to Money, a spokesperson for TP-Link, one of the largest router manufacturers, said the FCC’s recent actions “appear to affect almost all consumer-grade routers,” as almost all router manufacturers rely on overseas production or global supply chains. TP-Link, for example, is based in the US but does its manufacturing in Vietnam.
Importantly, the ban is not retroactive – meaning you don’t have to panic-buy a new router today. The FCC order does not affect proprietary devices or models that have already been approved for sale. Those routers can still be sold and used.
However, once that stock runs out, consumers can start to see shortages – and price increases.
“This ban affects almost every router,” said Greg Guice, chief policy officer at the Vernonburg Group and a former FCC regulatory attorney. The impact may not be immediate but could be felt as new devices face delays or reduced competition, he adds.
When fewer companies can sell routers in the US, consumers have fewer options — and less competition often gives sellers more room to raise prices.
“We will start to see pain in the next four to five months,” he said, adding that some things that are already under construction can be sold at high prices. “At a time when there is so much innovation in the spectrum space, this will not only hold back prices but also set us back in terms of providing consumers with the intelligence that we have worked for years to bring to market.”
Manufacturers are completely out of options. Companies can seek exemptions for certain models, though doing so requires extensive disclosure — including where the router’s components are made and detailed plans to change the manufacturing landscape over the next five years.
In fact, that process could slow new products to market, fueling concerns about limited supply and rising prices.
Guice says the scope of the policy is unusual compared to past FCC actions, which have targeted specific companies — such as Chinese phone companies such as Huawei and ZTE — rather than broad product categories.
“There’s not a lot of history that precedes it,” he said.
For now, you don’t need to rush out and replace your Wi-Fi router — but time can be of the essence when you’re considering an upgrade. Ultimately, according to Bryan Reimer, a research scientist at the MIT Center for Transportation and Logistics, US households may end up paying for routers while those abroad benefit from “lower supply chains and faster technology update cycles.”
“Security concerns may drive policy, but consumers bear the economic cost,” he adds.
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