FCC Blocked from Licensing Satellite Systems Tied to 'Covered' Equipment Providers—Immediate Ban on Market Access

The new Secure Space Act of 2025 is short but packs a punch, instantly changing who can set up satellite and ground station operations in the U.S. Basically, the bill tells the Federal Communications Commission (FCC) that it cannot grant licenses, market access, or earth station authorizations to any satellite system or ground station if that system is owned or controlled by an entity that provides “covered communications equipment or service,” or is an affiliate of such an entity (SEC. 2).

The Satellite Security Firewall

This legislation is essentially building a security firewall around U.S. satellite infrastructure, focusing on the companies that make or sell the gear used in our communication networks. The ban takes effect the moment the Act becomes law, and the FCC has one year to write the specific rules for implementing this new restriction. If you’re a company trying to launch a new satellite network or set up a ground station (whether it’s a big, individually licensed Gateway Station that routes traffic or a smaller, Blanket-Licensed Earth Station), your ownership structure is now under intense scrutiny.

What Does 'Covered' Actually Mean?

Here’s where things get tricky and potentially impactful for everyday users. The entire prohibition hinges on the term “covered communications equipment or service.” The problem? This section of the bill doesn't define what that is. This lack of definition means the FCC gets a huge amount of immediate power to decide who is blocked and who isn't. While the intent is clearly national security—preventing potentially adversarial entities from controlling vital space communications—the broad, undefined criteria could hit the market hard.

Real-World Impact: Competition and Your Wallet

For you, the consumer or small business owner, this matters because restricting market access often means restricting competition. If the FCC uses this new power broadly, it could block innovative or lower-cost satellite providers from entering the U.S. market. This could affect everything from the cost of your Starlink subscription to the quality of satellite broadband available in rural areas. If fewer companies can compete to provide the service, the existing players face less pressure to lower prices or improve service quality. The restriction also hits affiliates—meaning even if the parent company isn't directly providing the equipment, if a related company is, the whole operation could be blocked.

The Implementation Tightrope

This bill requires the FCC to walk a tightrope. On one hand, they must secure critical infrastructure. On the other, they must define “covered communications equipment or service” in a way that doesn't arbitrarily stifle competition or block legitimate, non-threatening companies. The one-year deadline for rulemaking is crucial, as those rules will determine who is locked out and who gets to play in the increasingly important satellite communications sector. Until those rules are written, any company with complex international ownership ties that might touch on communications equipment provision is likely in a holding pattern, waiting to see if their multi-million dollar investment gets grounded.