Telecommunications Resellers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,600 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.

Industry size & Structure

An average telecommunications reseller has about $11-12 million in annual revenue and 29-30 employees.

    • The US has about 1,600 telecommunications resellers who generate about $19 billion in revenue and employ 49,000 workers.
    • 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
                            Telecommunications Resellers Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Nov 14, 2022 - Report Urges States, Local Governments To Follow Federal Rules On Prohibited Equipment
                            • A think tank is recommending that state and local governments align their rules on buying technology from companies with federal guidelines that prevent agencies from purchasing certain prohibited foreign technology. The Center for Security and Emerging Technology at Georgetown University notified the Federal Communications Commission about an October report describing a trend of state and local governments having outdated procurement policies that let them purchase equipment banned for federal purchase. The Federal Communications Commission has a list of companies, which it updates on a rolling basis, that have been determined to pose a national security threat to the country’s networks. The only states that have enacted local regulations aligned with federal provisions are Florida, Georgia, Louisiana, Texas, and Vermont, the report said. Public schools and local governments may purchase from the third-party entities that are unknowingly selling prohibited equipment, the report added.
                            • Hackers are turning to traditional IT remote monitoring and management tools to execute cyberattacks on businesses and other organizations. Legitimate monitoring and management tools used by organizations including telecommunications resellers are being used by hackers to discover client-side applications and to conduct exploitation/post-exploitation activities. “The problem of course, is their effectiveness for legitimate security professionals make them effective for cybercriminals who crack them to remove any licensing requirements to use for free,” according to Chris Clements, vice president of solutions architecture at cybersecurity firm Cerberus Sentinel. “There are numerous hacker malware packages that are great for controlling computers, but they run the risk of being detected and removed by endpoint protection tools like anti-virus software and endpoint detection and response software,” Clements said. “Remote monitoring and management tools by and large eliminate this possibility as they are very often deployed for legitimate IT administration purposes.”
                            • About 70% of the small- and medium-sized businesses (SMBs) that responded to a survey conducted for the 2022 SMB Cybersecurity Landscape Report said that a serious breach had bypassed their current email security solution and 92% said they would be willing to listen to email security suggestions made by a Managed Service Provider (MSP). About 96% of organizations are either currently outsourcing at least some of their needs to MSPs or planning to in the future. Threat monitoring and intrusion (43%), cybersecurity consulting (37%) and firewall management (36%) are the three most important services to them.
                            • All 50 US state attorneys general (AGs) have joined a task force to go after US telecommunications companies that allow robocalls originating overseas to reach their customers. “The problem has been that the [Federal Communications Commission] fines someone … one at a time, or one AG shuts down a carrier,” said Alex Quilici, CEO of YouMail, a robocall-blocking software company that keeps track of robocalling in the US. “Now, it’s 50 going after them and 50 court proceedings and 50 fines. Enforcement really is key. Technology has advanced to the point so AGs can see when telecom carriers are carrying illegal traffic.” The task force issued 20 investigative requests in August to 20 companies that are “allegedly responsible for a majority of foreign robocall traffic,” according to North Carolina Attorney General Josh Stein.
                            Get A Demo

                            Vertical IQ’s Industry Intelligence Platform

                            See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                            Build valuable, lasting relationships by having smarter conversations -
                            check out Vertical IQ today.

                            Request A Demo