Telecommunications Resellers NAICS 517121
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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
May 7, 2026 - Vulnerabilities Discovered in Satellite Communications
- Close to half of the communications beamed from satellites to the ground that the researchers at the University of California San Diego were able to listen in on were not encrypted. This included sensitive data including cellular text messages, voice calls, as well as sensitive military information, data from internal corporate and bank networks, and the in-flight online activity of airline passengers. The researchers said that they used $800 worth of equipment to focus on geosynchronous (GEO) satellites, which orbit the earth at a fixed altitude and position around the equator. "Given that any individual with a clear view of the sky and $800 can set up their own GEO interception station from Earth, one would expect that GEO satellite links carrying sensitive commercial and government network traffic would use standardized link and/or network layer encryption to prevent eavesdroppers," the researchers wrote in a follow-up report.
- 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 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 two 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 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 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.
Industry Forecast
Industry Forecast
Telecommunications Resellers Industry Growth
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