FCC: Router ban includes portable hotspots, but not phones with hotspot features

The FCC’s clarified router ban now explicitly covers portable hotspots, but leaves smartphone hotspot features exempt—creating a split rule that affects 12 million hotspot users nationwide. The ban, rooted in national security concerns, targets devices from five Chinese manufacturers, including Huawei and ZTE, which controlled 35% of the US portable hotspot market in 2025. This loophole is faster than the average regulatory gap; carriers must comply within 90 days, versus the typical 180-day period. For consumers, this means your dedicated hotspot device may be illegal starting July 2026, while your phone’s tethering remains untouched. The FCC estimates the ruling affects $2.3 billion in existing hardware, a 15% larger impact than the initial router ban targeted.