Takeaways
- US government to consider banning use of cellular modules with Chinese origin.
- Should ban go into effect, it is expected to impact 70% of device market, including IoT and smart home devices.
- FCC says regular updating of devices poses major cybersecurity risk.
In an ongoing escalation between the US government and foreign-made wireless devices, the Trump administration has reportedly been weighing a new ban on Chinese-made cellular modules. This would mark a significant expansion of the preexisting ban placed on foreign-made routers, cellular routers and mobile hotspot devices.
The story was originally picked up by the Financial Times, which in its article stated that the decision was being guided by ongoing security concerns regarding Chinese influence on consumer electronics.
Why this matters to integrators
In the same report, the Financial Times noted that currently, 70% of the global cellular market is controlled by Chinese firms, meaning any ban or restriction has the potential to greatly impact supply chains the world over.
Cellular modules allow devices to connect to mobile networks such as 4G and 5G without the need for Wi-Fi. The most familiar use case would be a smartphone; however, cellular modules are used in everything from routers, drones, cars, and—perhaps most importantly for integrators—sensors and other smart home devices.
Were a ban to be placed on cellular modules, it would greatly impact the supply chains of IoT and other connected devices, leading to limited inventories and potential price hikes until supply chains stabilized.
The facts as they stand with the potential ban on Chinese-made cellular modules
As of now it has not been confirmed as to whether the FCC will pursue a ban on Chinese-made cellular modules. Instead, the report states that the administration whether these modules should eventually be added to the FCC’s “Covered List,” which effectively acts as a ban list, blocking covered products from receiving FCC authorization.
While the move would mark the largest escalation of the FCC’s fight to manage security risks on US networks, it does follow a trend in recent FCC policy.
Last month, the FCC voted to ban Chinese laboratories from conducting manual testing required for consumer electronics certification in the US, a move that already stands to impact 75% of all devices requiring FCC testing.
Additionally, the FCC had clarified in April that its router ban would also cover cellular routers and mobile hotspot devices, showcasing that cellular communications were already on the commission’s radar and prompting concern among experts as to how the ban could expand to include cellular devices in a broader scope.
Regarding cellular modules, the FCC argues that the need for periodic updates on installed devices could result in covert surveillance software or harmful malware being installed.
It’s worth noting that while no move has been made to ban these devices yet, the mention of them being included on the Covered List could also lead to a situation like what is currently happening with routers, where after a certain cutoff date, all updates for these devices will need to stop.
How likely is the ban to go through?
One note is the timing of the announcement. Released prior to Trump’s visit to China, many economic experts have weighed the possibility of the news being used to put pressure of China during negotiations, though no other confirmation as to this being the case has been given.
The fact that it acts as a natural extension of the FCC’s existing ban on cellular routers gives it weight, and for anyone monitoring the situation, it should still be treated as a possibility, given the increasing scale of the administration’s efforts in securing American IoT devices, especially at the consumer level.
