Nokia welcomes new EU rules as it reports sales growth

• CEO Justin Hotard says the EU’s digital and cybersecurity acts will bring much-needed clarity for operators and vendors
• Modernisation and harmonisation plans could boost European telco competitiveness
• Nokia posts fourth-quarter and year-end financial results, with an increase in network infrastructure sales driven by AI and cloud demand

Nokia has welcomed European Union moves to bring clarity to telecom regulation through the Cybersecurity Act and the Digital Networks Act (DNA).

The EU released its proposals for the Digital Networks Act last week, outlining plans to modernise, simplify and harmonise European telecom regulations to help spur investment in the industry and tackle market fragmentation.

It also looks to boost network security and sovereignty while supporting digital goals such as AI, with a focus on cross-border security and competitiveness.

Speaking on an analyst call for Nokia’s fourth-quarter and full-year financial results, the vendor’s CEO, Justin Hotard (pictured above), was positive about what the EU has published so far, saying it includes a lot of provisions that he has been calling for since he became CEO of the Finnish vendor in April.

“It offers clarity on replacement schedules but also support for network operators, which is important,” he told the media and analysts. “From a supplier perspective, the network upgrades that will be required in Europe [are] well within our capacity.”

He added: “We recognise there is complexity – but the urgency is now. Our customers need to have clarity, because the platforms they are investing in today need to become 6G-ready in the near future. If you buy an Airscale platform today, it needs to be upgradeable to AI-RAN when we launch that product. That investment decision is now.”

He added that the same mindset for radio also applies to fibre networks and access networks, saying fixed access networks are critical for consumers and businesses.

And with respect to the plans for spectrum harmonisation, he added, “There is a big opportunity in Europe to reshape the region’s long-term competitiveness in technology, in infrastructure and innovation and, ultimately, in national security and sovereignty.”

AI-fuelled sales demand

Nokia reported a sharp rise in sales of its network infrastructure, citing high demand from AI and datacentre customers, but warned of softening sales in 2026 amid a major restructure at the Finnish vendor. (You can read the full results here.)

Hotard had unveiled plans to restructure Nokia’s business to focus on AI and datacentre demand in order to offset weak spending and contract losses in 5G, and these were the first financial results to have been reported following the changes.

Fourth-quarter sales at the Finnish firm hit €6.12bn, up 3% year on year, thanks to growth in both network infrastructure and mobile networks. Operating profit stood at €2bn which, according to Hotard, topped Nokia’s mid-point guidance.

Optical networks played a key role in the growth of the network infrastructure sales, which were up 17% in the fourth quarter thanks to high demand from AI and cloud customers. Mobile networks sales were flat for the year, however.

Nokia also outlined its 2026 expectations, explaining that it is targeting between €2bn and €2.5bn of comparable operating profit for the year.

“At the start of 2026, our Mobile Infrastructure segment brought together core software, radio networks and technology standards. This structure is designed to sharpen accountability, improve profitability and position the business for long-term technology leadership,” Hotard said. “While near-term demand is driven by 5G technologies and we see promise for Open RAN, we are also investing to lead in the transition towards AI-native networks and 6G. We believe the Nvidia partnership we announced in Q4 helps position us favourably to lead this transition.”

- James Pearce, Editor, TelecomTV