The law does not single out any particular vendor, and introduces compensation for operators having to replace equipment.
The provisions are part of the new Telecommunications Act: On 7 December 2020, the Finnish Parliament implemented the European Electronic Communications Code, which reforms the European regulatory framework for telecoms. The law also empowers the regulator Traficom to restrict network equipment when it has ‘serious grounds’ for suspecting that it endangers national security.
Operators will be entitled to compensation for replacements: Restrictions may be retroactive, meaning they would apply to network equipment in use before the new rules take effect. Traficom will also decide on the amount of the compensation for operators, taking into account at least the direct costs of replacement, although the law leaves room for ‘other financial losses’ to be considered.
A fine balance to protect Nokia: The law is not directed at any specific vendor, meaning there is no explicit exclusion of Chinese vendors such as Huawei from the country’s networks. Members of the ruling Social Democratic party pointed out that they did not want to single out any vendor to avoid the risk of retaliation against Nokia, which has a presence in the Chinese mobile market.
