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Prohibits the FCC from approving satellite system licenses, U.S. market access petitions, or earth-station authorizations when the authorization would be owned or controlled by an entity that produces or provides any “covered communications equipment or service” or by that entity’s affiliate. It defines key terms (including "affiliate" with "own" meaning a 10% or greater equity interest) and requires the FCC to adopt implementing rules within one year; the ban applies to authorizations granted on or after the date of enactment.
Redesignate sections 10 and 11 of the Secure and Trusted Communications Networks Act of 2019 as sections 11 and 12, respectively.
Insert a new Section 10 titled 'Prohibition on grant of certain satellite licenses, United States market access, or earth station authorizations' into the Secure and Trusted Communications Networks Act of 2019.
Define 'affiliate' to mean an entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another entity. Define 'own' for this paragraph to mean possessing an equity interest (or equivalent) of not less than 10 percent.
Define 'blanket-licensed earth station' as an earth station that is licensed with a geostationary orbit satellite system or a nongeostationary orbit satellite system.
Define 'gateway station' as an earth station or group of earth stations that: (A) supports routing and switching functions of a geostationary or nongeostationary orbit satellite system; (B) may also be used for telemetry, tracking, and command transmissions; (C) does not originate or terminate communication traffic; and (D) is not for the exclusive use of any customer.
Who is affected and how:
Satellite system operators and applicants: Companies seeking new satellite system licenses or U.S. market access petitions will be subject to ownership and control screening. If they are owned or controlled (including via 10%+ equity stakes) by a producer/provider of covered communications equipment or services — or by that producer's affiliate — the FCC must refuse authorization. This can block market entry, delay rollouts, or require ownership restructuring.
Earth station and gateway operators: Entities seeking blanket-licensed or individually licensed earth-station authorizations will face the same prohibition. Operators using third-party equipment or financed/partly owned by covered vendors or affiliates may need to change suppliers or investors.
Communications equipment and service providers (covered vendors): Firms that produce or provide the defined covered equipment/services (and their affiliates) will be effectively barred from holding or controlling satellite authorizations or earth stations in the U.S., and their minority investors (10%+) could also be treated as affiliates, limiting commercial roles in U.S. satellite infrastructure.
Investors and equity holders: The 10% ownership definition means institutional and strategic investors holding modest minority stakes may trigger affiliation and thus limit their portfolio companies' ability to obtain FCC satellite/earth-station authorizations.
FCC and licensing process: The FCC must write and implement new rules within one year, update its licensing reviews and disclosure requirements, and enforce the prohibition for grants on/after enactment — increasing agency workload and requiring new review criteria and processes.
Downstream effects on consumers and services: Potential outcomes include slower satellite deployment schedules, increased costs as operators replace disallowed suppliers or restructure ownership, and reduced vendor choice for some projects; proponents would argue the measure reduces national security risk from reliance on covered vendors.
Legal and commercial risk: Companies that do not identify or remediate prohibited ownership or affiliate relationships could face application denials; transitional business arrangements or divestitures may be necessary. Ambiguities in definition of "covered communications equipment or service" (as applied in implementing rules) may generate regulatory or legal disputes.
Overall, the change is targeted and regulatory: it directly affects satellite and earth-station licensing and the ownership structures of applicants, with broader effects on supply chains, investor relationships, FCC procedures, and potential market entry for foreign-linked or equipment-supplying firms deemed "covered."
Last progress June 5, 2025 (8 months ago)
Introduced on June 5, 2025 by Debra Fischer
Read twice and referred to the Committee on Commerce, Science, and Transportation.