Cable lobby warns of broadband chaos as it seeks FCC waiver on router components

The NCTA-The Internet & Television Association has petitioned the US Federal Communications Commission for an expedited waiver to allow cable broadband providers to substitute memory modules and substrate materials in previously certified routers. The group warns that the FCC’s recent ban on consumer-grade routers containing foreign components, driven by national security concerns, has triggered severe supply chain shortages. NCTA argues that without this relief, widespread disruptions to home broadband services will occur. The request mirrors a similar waiver recently granted to AT&T suppliers, aiming to maintain production of existing devices while companies pursue conditional approvals for onshoring manufacturing.

In a petition filed on Tuesday, the NCTA asked the FCC to permit its members’ suppliers to substitute substrate materials and memory modules in routers already on the Covered List, provided the changes are consistent with regulations and do not swap US-produced components for foreign ones. The industry group argues that these modifications are essential to continue production of devices approved before the March update to the Covered List, which added all consumer-grade routers made at least partly outside the US due to national security risks.

The NCTA highlighted that the industry is constrained by unavoidable shortages in critical substrate materials and memory modules, including both volatile and nonvolatile memory. The group noted that artificial intelligence is driving unprecedented demand for substrate materials, leading to significant lead times for finding alternatives. These persistent industry-wide shortages have caused delays and supply chain constraints, which the NCTA claims impose inevitable limitations on cable suppliers similar to those experienced by AT&T.

While the FCC previously ruled that existing routers can receive software and firmware updates until at least January 1, 2029, Class I and Class II hardware changes remain prohibited for non-AT&T providers. AT&T’s suppliers were granted permission for these hardware changes last month, allowing them to substitute substrate components and memory in existing designs. The NCTA stated that its suppliers are similarly situated and that the requested waiver would prevent sudden disruptions to millions of Americans’ broadband services while companies navigate the process of obtaining conditional approvals.

Router makers seeking to import and sell new models must obtain conditional approvals, which require a justification for foreign manufacturing and a time-bound plan to establish or expand US manufacturing. This process also involves security determinations from the Department of Defense or Department of Homeland Security. Netgear and Amazon’s Eero subsidiary have already obtained conditional approvals, while Chinese companies are expected to face greater difficulties in securing exemptions under the current regulatory framework.