Nokia CEO Warns Trade Tensions Could Backfire on Tech Industry

Kenya, 30 January 2026 - The global telecoms industry is increasingly finding itself squeezed between rising geopolitical tensions and tightening regulatory controls, a trend that industry leaders warn could slow innovation and raise costs for network operators.

Nokia chief executive Justin Hotard has cautioned that telecom companies can no longer rely on isolated markets to sustain growth, noting that the sector depends on scale, open competition, and cross-border access to survive in a highly capital-intensive environment. He said the industry’s cyclical nature makes it especially vulnerable to policy decisions that fragment markets or limit supplier choice.

Telecom operators across Europe and North America are already adjusting to a shifting regulatory landscape. Restrictions on Chinese network equipment in the United States have been mirrored by similar plans in parts of Europe, where governments are phasing out what they classify as high-risk technologies. While the moves are driven by security concerns, they have also narrowed the pool of available suppliers.

For vendors such as Nokia and Sweden’s Ericsson, reduced competition has brought short-term opportunities, but Hotard warned the longer-term effects could be damaging if policy coordination breaks down between Europe and the US.

American carriers, he noted, rely heavily on European and Asian suppliers because the United States lacks a large domestic manufacturer of telecom infrastructure.

As a result, further regulatory divergence could disrupt network rollouts and raise costs for operators, with knock-on effects for consumers and digital services. Hotard also flagged the risk that escalating trade restrictions could spread beyond physical infrastructure to include software and digital platforms, increasing uncertainty across the sector.