How Tariffs Could Stall Your Growth: Six Questions for Smarter Vendor Decisions

Whether we like it or not, geopolitics and trade policy are now increasingly influencing tech strategy, especially when it comes to partnerships and procurement. Supply chain dynamics are shifting, and if your vendors aren't ready to adapt to evolving tariff changes, your operation and expansion plans won't be readily adaptable either.

Global telecom providers have long incorporated international components into their supply chains, but recent shifts in trade policy may necessitate a strategic reassessment. Tariffs, once viewed as isolated, government-level economic tools, are now becoming an increasingly day-to-day business concern. Although the debate around this issue is intense, the shift is subtle but potentially far-reaching for Communication Service Providers (CSPs), affecting everything from software licensing and hardware procurement to rollout timelines and compliance requirements.

Here are six questions that telcos may want to ask themselves as they navigate this new geopolitical landscape.

Will tariffs silently inflate your operating costs?

Tariffs rarely appear as line items in procurement contracts, but their impact often manifests in other ways, such as through delays, price adjustments, unexpected shipping costs, or inflation in licensing fees. As OSS (Operations Support System) and BSS (Business Support System) platforms increasingly rely on international partnerships and cloud-hosted components, the cost implications of shifting trade policy can sneak in through multiple layers of the tech stack.

Some telcos have already begun modeling tariff exposure as a new cost category within their operational planning, particularly those undergoing digital transformation at scale. For others, the effects may not yet be visible, but they are likely accruing in the background with future ramifications.

Is your OSS/BSS ecosystem built on vendor relationships vulnerable to trade shifts?

The notion of global reach has traditionally been a strength, but it is now being reassessed through the lens of risk. Vendors and/or partners operating in regions with unstable trade relations or facing increasing scrutiny are now being evaluated not only on performance and innovation but also on their geopolitical exposure.

This doesn't mean telcos are walking away from global partners entirely. Doing so is not a viable option in the short term for long-term strategic engagements, such as OSS/BSS stacks. However, telcos are seeking a better balance and mechanisms that can provide protection against geopolitical risk. For example, the ability to rely on regionally neutral suppliers, especially those in Europe, is becoming a strategic asset. This is particularly true in OSS and BSS, where long-term integration and regulatory compliance are key, and EU-based vendors are adept at navigating numerous regulatory obligations.

Do you have a backup plan for supplier compliance issues?

Recent years have shown how quickly export bans or blacklists can reshape a telco's vendor landscape. When a supplier becomes legally restricted from delivering updates or fulfilling contracts, there are real consequences: delays, penalties, and, in worst-case scenarios, operational outages or rapid, enforced swap-outs.

This is where modular architecture becomes more than a buzzword. The ability to substitute or replace components within your OSS/BSS stack, whether on-premise or cloud-native, is vital to ensure uninterrupted operation and continuous service provisioning, and initiatives such as Open RAN, Open APIs, and cloud platforms are now being considered not just for innovation benefits but as contingency tools in a volatile environment.

OSS/BSS platforms aren't easily swapped out, but it can be helpful to understand how complex your transition might be by conducting a contingency review. Now is the best time to think about emergency scenarios and start preparing in advance.

Are your vendor contracts built to handle sudden tariff spikes or export bans?

Procurement contracts often assume a level of stability that may no longer exist now or in an increasingly volatile future. As tariffs rise and global licensing laws evolve, the fine print in long-standing agreements could expose telcos to legal ambiguity or financial risk.

Forward-looking operators are now building flexibility into contracts and SLAs, ensuring they can renegotiate pricing or delivery expectations when affected by external forces. The true value of Procurement teams is evolving to become as much about legal foresight as it is about technical fit or commercial negotiation.

Could a change in trade policy delay your next infrastructure rollout?

Whether deploying network augmentation, upgrading infrastructure, or launching new markets, rollouts today are increasingly shaped by where and how your technology is sourced. Regional presence has always been a decision factor in OSS/BSS procurement events, but it's now becoming even more pronounced. Even SaaS-based tools, long considered abstracted from hardware supply chains, are now subject to regional regulations and cost variations depending on the zones where they, or the data they store, are deployed.

As a result, telcos are starting to reassess their rollout priorities based not only on demand but also on where sourcing is most stable. This includes working with vendors that can deliver consistently in specific regulatory regions and building fallback options into rollout plans.

Are your current suppliers helping you stay compliant if regulations or pricing models change?

A vendor's ability to adapt is now arguably almost as valuable as their technical capability. As regulatory frameworks shift, notably regarding data residency, export controls, and cross-border taxation, many telcos are finding that some suppliers are more proactive and thought-leading than others.

Compliance is a collaborative effort. CSPs are looking for partners who don't just respond to problems but also actively support them in staying ahead of regulatory changes. In today's climate, vendors based in the EU, where neutrality, compliance, and regulatory stability are relatively strong, are being seen as attractive, long-term collaborators.

Stability becomes a competitive advantage

This isn't about abandoning globalisation but about adapting to deal with a more complex version of it. The tariff era has forced a shift in how CSPs evaluate growth, risk, and vendor strategy, especially in the domain of OSS and BSS, where long-term trust, integration, and partnerships are crucial.

For telecom providers rethinking their procurement roadmap, the questions above aren't hypothetical. They're becoming part of the strategic conversation at the board level. And while there's no universal answer, one trend is emerging clearly: in a world where tariffs, bans, and licensing shifts can, and are, shifting overnight, stability is no longer just desirable – it is an important factor in the decision-making process.