Telecommunications Resellers

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.

Sep 8, 2026 - Resellers Can Help Customers Optimize Technology Expenses

• Telecommunications is only one component of a much larger technology portfolio available to telecommunications resellers, according to Telecom Reseller. Digital transformation, cloud computing, software as a service, the digitization of voice, and the growing importance of enterprise data have fundamentally changed enterprise spending patterns. This creates an opportunity for resellers to expand their role beyond technology implementation. Resellers can support discussions around funding future investments in networking, cloud, cybersecurity, mobility, and AI initiatives by helping customers identify opportunities to optimize existing technology spending.
• The FCC is expanding its ban on Chinese telecommunications equipment to older models due to security concerns. High-profile incidents involving hacking of sensitive customer data has raised security and privacy concerns among some businesses about Internet telephony solutions. The new rules prohibit the import of previously approved equipment manufactured by Chinese companies including Huawei Technologies, ZTE, Hytera Communications, Hikvision and Dahua Technology. The restrictions will take effect in early July. The FCC first barred approvals for new models of equipment from those companies in 2022 after placing them on its "Covered List" of firms deemed to pose unacceptable risks to US national security. Under the expanded policy, products that had received authorization before the 2022 order will also be prohibited from entering the US market.
• The Federal Communications Commission (FCC) has ended the telecommunications cyber rules enacted after the Salt Typhoon espionage campaign. Salt Typhoon involved the hacking of prominent telecommunications companies in the United States, stealing the metadata of many Americans. The termination comes after several US senators urged the commissioners against voting these cyber rules away. The FCC argues that the previous rules were "legally erroneous and ineffective at promoting cybersecurity." The commission claims that it is advocating for a "targeted approach to promoting effective cybersecurity productions rather than a one-size-fits-all approach."
• Telecommunications resale industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first seven months of 2026, according to the US Bureau of Labor Statistics. Telecommunications reseller sales are forecast to increase at a 4.24% compounded annual rate from 2025 to 2029, comparable to the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.

Industry size & Structure

An average telecommunications reseller has about 21 employees and about $7.5 million in annual revenue.

• The US has about 1,700 telecommunications resellers who employ 334,700 workers and generate about $13 billion in revenue.
• The industry is moderately concentrated - the top 50 companies account for 89% of industry revenue.
• At the same time, there a large number of small companies - about 79% of telecommunications resellers have less than 10 employees.