Telecommunications Resellers NAICS 517121

        Telecommunications Resellers

Unlock access to the full platform with more than 900 industry reports and local economic insights.

Get Free Trial

Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.

Purchase Report

Industry Summary

The 1,700 telecommunications resellers in the US either sell local, long distance, or wireless phone services using other companies’ networks, or sell and install phone systems for businesses using third-party equipment. Local fixed line service resellers include competitive local exchange carriers (CLECs) who resell local phone services using the networks of incumbent local exchange carriers (ILECs). Equipment resellers resell products from equipment suppliers (Avaya, Cisco, etc.) and provide system integration services for small and medium businesses.

Transition To Internet Telephony

The telecommunications industry is in the midst of a transition from traditional fixed line circuit switching for voice traffic to packet switching of voice, data, and video over the Internet and wireless networks.

Dependence On Economy

Spending on telecommunications services is driven by business activity and demand for telecommunications resellers falls when the economy is weak.


Recent Developments

Jul 8, 2025 - New Federal Law Could Reallocate Wi-Fi Spectrum To Mobile Carriers
  • The Federal Communications Commission has regained its authority to hold spectrum auctions and could use that power to take spectrum away from Wi-Fi networks and license it to mobile carriers AT&T, Verizon, and T-Mobile, according to the Ars Technical technology news site. A new law allows at least 800 MHz to be auctioned and allows part of it to be taken from the 6 GHz band that's being used to boost speeds in the new generation of Wi-Fi networks. The 1,200 MHz between 5.925 and 7.125 GHz was allocated to Wi-Fi in April 2020 under then-FCC Chairman Ajit Pai. The Pai-led FCC rejected the mobile industry's requests to use the band for cellular networks, saying that making the entire 6 GHz available to Wi-Fi on an unlicensed basis would promote "more efficient and productive use of the spectrum" by helping Wi-Fi speeds keep up with rising home Internet speeds. The new law also allows spectrum to be taken from the Citizens Broadband Radio Service (CBRS), which goes from 3.55 to 3.7 GHz. While other spectrum bands could be targeted too, advocates say it would be hard for the FCC to fulfill the congressional mandate without taking spectrum from Wi-Fi, CBRS, or both. The Wireless Internet Service Providers Association (WISPA), which represents small ISPs, said that "the vast majority of WISPA members employ CBRS and/or 6 GHz services to deliver broadband to their rural and under-resourced communities."
  • The US smartphone market, an indicator of demand for wireless telecommunications service, contracted 2% year-over-year in Q1 2025, according to Counterpoint Research. The premium segment, defined as devices priced above $800, took the hardest hit as both Apple and Samsung saw sales decrease. “Carriers have attempted to offset market weakness by prioritizing strong device promotions,” said Maurice Klaehne, Senior Research Analyst at Counterpoint.
  • Telecommunications industry core products and services are becoming commodities according to professional services firm PWC. Firms have difficulty raising prices while telecommunications service providers face a continual need to invest in infrastructure. PWC notes, however, that there are always niches of expansion and opportunities for companies in industries with relatively slow growth. A sweeping reconfiguration of legacy industries will create a greater demand for connectivity and communications services in the coming years, according to PWC. Key megatrends within the telco industry itself are causing a sweeping internal reconfiguration, which is opening up many new opportunities. These include strategic investments in AI, fixed connectivity, and B2B service; working with investors and regulators to create opportunities to optimize market structure; and deploying deals to build scale.
  • Telecommunications resale industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics. Telecommunications reseller sales are forecast to increase at a 3.33% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.

Industry Revenue

Telecommunications Resellers


Industry Structure

Industry size & Structure

An average telecommunications reseller has about 23 employees and about $11.7 million in annual revenue.

    • The US has about 1,700 telecommunications resellers who employ 38,600 workers and generate about $20 billion in revenue.
    • The industry is moderately concentrated - the top 50 companies account for 82% of industry revenue.
    • At the same time, there a large number of small companies - about 79% of telecommunications resellers have less than 10 employees.

                            Industry Forecast

                            Industry Forecast
                            Telecommunications Resellers Industry Growth
                            Source: Vertical IQ and Inforum

                            Vertical IQ Industry Report

                            For anyone actively digging deeper into a specific industry.

                            50+ pages of timely industry insights

                            18+ chapters

                            PDF delivered to your inbox