FCC Votes to Block Foreign-Controlled ‘Bad Labs’

WASHINGTON, May 23, 2025 – The Federal Communications Commission on Thursday unanimously adopted a final order banning foreign-linked “bad labs” from certifying wireless equipment for the U.S. market.

In two separate 4-0 votes, the agency also launched proposed rulemakings: one to identify foreign adversary ownership across FCC licensees, and another to explore opening more than 20,000 megahertz of high-band spectrum for satellite broadband – a move that could more than double current capacity for non-terrestrial networks.

The votes reflected ongoing efforts by the FCC, particularly under Republican Chairman Brendan Carr, to shore up national security, expand space-based connectivity, and increase transparency over foreign influence in U.S. networks.

FCC bans ‘bad labs’

The newly adopted rules prohibit test labs, telecommunications certification bodies, and accreditation entities from participating in the FCC’s equipment authorization program if they are owned or controlled by foreign adversaries. 

“The closer we looked at these labs, the clearer it became they create a potential loophole in our national security efforts,” Carr said during Thursday’s meeting. “Trusting a lab like Huawei to certify that it’s not approving prohibited gear doesn’t sound like a smart bet to me.”

The final order outlines a newly defined category of “prohibited entities” that includes those listed on federal national security databases such as the FCC’s Covered List, the Commerce Department’s Entity List, and the Defense Department’s Chinese Military Company List, among others. 

Any lab or certification body with 10% or more ownership, control, or direction by a prohibited entity will be barred from participation. Entities must also report any ownership stakes of 5% or more, even if they fall below the disqualification threshold.

Until now, the FCC’s criteria for approving such entities focused on technical competence, not ownership or geopolitical alignment.

“This threat surely is not a speculative one,” Carr said, noting Huawei continued operating a U.S.-recognized lab until April 2024. 

“We need to know that when a test lab certifies equipment, it is doing so on the merits, not due to undue influence from an adversary,” said Democratic Commissioner Geoffrey Starks, who backed the order during what he announced would be his final commission meeting.

More spectrum for satellites

The FCC also launched a proceeding that could unlock more than 20,000 megahertz of spectrum across four high-frequency bands for satellite broadband. “That amount is more than the sum total of all spectrum available for satellite broadband today,” Carr said.

The bands under consideration include: 12.7–13.25 GigaHertz (GHz), 42.0–42.5 GHz, 51.4–52.4 GHz, and the ultra-high W-band (92.0–114.25 GHz). The W-band, once thought impractical due to propagation challenges, was now attracting serious commercial interest thanks to advancements in antenna design, signal processing, and low-Earth orbit satellite constellations.

“These bands are in neighborhoods ideal for satellite broadband,” said FCC Space Bureau Associate Chief Stephen Duall, noting that most were underused. 

This notice invites comment on ways to revise frequency allocations, eliminate restrictions on the use of the 12.7 GHz band by satellite services, and explore whether any revisions to Part 25 rules, which outline the technical and licensing requirements for satellite communications systems, were needed.

Cracking down on foreign ownership

In another national security-focused move, the FCC voted to begin formalizing how it identifies communications companies that are owned or controlled by foreign adversaries. 

The new rulemaking would require license and authorization holders across the communications sector to disclose whether they are under the ownership, direction, or jurisdiction of a foreign adversary.

The May 22 rulemaking builds on the FCC’s April 28 effort to codify longstanding foreign ownership review policies.