The lines between IT and telecom have officially blurred—and for Managed Service Providers (MSPs), this isn’t a threat… It’s a multimillion-dollar opportunity.
MSPs already manage essential infrastructure—from cybersecurity and device support to network monitoring. But now, with the right tools, they can also provide voice, internet, mobile connectivity, and IoT services—under their brand. Advances in white-label platforms, billing automation, and tax compliance solutions have removed the complexity that once made telecom inaccessible.
By becoming a telecom MSP, you can unlock high-margin revenue streams, improve client retention, and increase your business's long-term value.
In Part One of the three-part webinar series, Unlocking New Revenue Streams: The Convergence of IT and Telecom, industry experts Brent Reeves (Co-founder & CCO, CereTax), Usman Zahoor (VP, Channel & Community, Rev.io), and Brian Greer (Partner & CRO, TaxConnex) explore why MSPs should take ownership of telecom services—and how doing so creates a more profitable, defensible business.
Below, we break down the session's top takeaways and explain how you can capitalize on this convergence to drive long-term success.
The traditional MSP model has always focused on managing IT infrastructure—things like network support, cybersecurity, and cloud services. But as digital communication becomes core to business operations, there's a clear shift happening: the telecom space is no longer separate from IT—it's becoming part of it.
And that shift is creating a major opportunity for MSPs to expand revenue, increase client stickiness, and future-proof their businesses. Here’s why the timing is right:
According to Fortune Business Insights, the Unified Communications-as-a-Service (UCaaS) market is projected to grow from $47.6 billion in 2021 to $210 billion by 2028. That kind of growth signals demand, and service providers are racing to keep up.
With remote and hybrid work now the norm, businesses prioritize VoIP, video conferencing, mobile access, and seamless collaboration. Most MSPs are already managing the networks that support these tools—adding telecom is a natural extension.
UCaaS and telecom services are high-margin, subscription-based, and deeply integrated into daily operations, making them stickier than many traditional IT services.
As telecom providers move into the managed services space, MSPs who don’t evolve risk getting displaced. Offering telecom makes you a one-stop solution—and strengthens your hold on the client relationship
“The UCaaS market isn’t just growing—it’s exploding,” said Usman Zahoor, VP of Channel & Community at Rev.io. “MSPs already own the client relationship. This is their chance to own the communications revenue too.”
Whether you want to grow ARR, improve margins, or increase business valuation, owning the communications layer gives you the leverage. But how you enter the space matters, which brings us to your options.
Once MSPs recognize the opportunity in telecom, the next question becomes: how do you get started?
There are two common approaches that service providers take when entering the communications space. Each offers different levels of control, complexity, and revenue potential, and understanding these options is key to choosing the right model for your business strategy and long-term goals.
This model is often the entry point for MSPs just beginning to test the waters. In this scenario, the MSP acts as a sales agent, referring clients to a third-party telecom provider in exchange for a commission. The provider owns the customer relationship, handles billing, and manages compliance.
Pros:
Cons:
While this model requires minimal setup, it also delivers minimal upside. As Brent Reeves (Co-founder of CereTax) explained, “You’re often still doing the support work, but someone else is sending the bill—and that weakens your position with the client.”
In contrast, the white-label model allows MSPs to own the entire communications experience. You’re not just reselling a service—you’re delivering it under your own brand, on your own invoice, with full pricing and margin control.
Pros:
Cons:
This model takes more effort up front, but the long-term benefits are substantial. You’re no longer just making a cut—you’re building a scalable revenue stream with equity value.
“If your name’s not on the invoice, you’re replaceable,” said Brent Reeves.
“White-labeling builds a moat around your business—and makes it harder for competitors to take your clients.”
When you white-label telecom services, you move beyond commission checks and into true ownership. You control the pricing, the customer relationship, and the service delivery. And more importantly, you capture the full revenue and profit on every invoice.
This has a direct impact on your bottom line—but it also influences how your business is valued, especially if you're planning for a future sale, investment, or expansion.
Here are 5 reasons white-labeling telecom services creates stronger business value:
Most MSPs earn 60%–80% gross margins on white-labeled VoIP and UCaaS services—far more than the 15–25% typically offered in agent/referral models.
White-labeling adds true monthly recurring revenue (MRR) to your books. Investors and acquirers love owned, sticky revenue streams because they signal predictability and customer loyalty.
Companies with owned recurring revenue often see EBITDA multiples of 5–10x or higher during acquisition or funding events. By contrast, commission-based revenue is often heavily discounted—or excluded altogether.
A single large telecom deal can significantly boost your valuation. In one example, a 600-seat deal generated just $15K in agent commissions, but could have driven $160K+ in ARR and added over $300K in valuation under a white-label model.
When your name is on the invoice and your team delivers the service, you strengthen brand recognition and increase retention—creating a durable advantage over competitors.
“We’ve seen MSPs double their business valuations by shifting from agent to provider,” said Brian Greer, CRO at TaxConnex. “White-labeling doesn’t just improve profitability—it changes how your business is perceived and valued.”
White-labeling telecom isn’t just about reselling dial tone—it’s about expanding your service portfolio with high-demand, high-margin offerings that align with the evolving needs of your clients.
As businesses become more reliant on cloud communications, mobility, and IoT, MSPs have a unique opportunity to step in and provide an integrated experience. And with the right billing and compliance tools in place, these services become not just easy to deliver—but profitable from day one.
The foundation of modern business communication—offering features like call routing, virtual phone systems, and collaboration tools. Includes integrations with:
Provide broadband access, redundancy, and intelligent traffic routing to improve uptime and application performance.
Offer business mobile plans under your own brand—ideal for companies with distributed or remote teams.
Serve customers deploying smart devices, sensors, or GPS-enabled assets with white-labeled IoT data plans and monitoring tools.
Provide value-added services like eFax, call recording, call analytics, and E911—all white-labeled under your MSP brand.
Bundle call encryption, voice archiving, and regulatory tools that help clients stay compliant with industry standards (especially in legal, healthcare, and finance sectors).
“We’re seeing MSPs not just offer these services—but bundle them into premium packages that increase MRR and reduce churn,” said Usman Zahoor of Rev.io. “It’s about becoming the single point of contact for everything your client needs to communicate and connect.”
Let’s be honest—telecom isn’t a plug-and-play industry. Taxes are complex, regulations vary by state, and billing can get messy fast. It’s no surprise many MSPs hesitate to dive in, worried about the backend burden.
But here’s the good news: you don’t have to build it from scratch.
Thanks to purpose-built platforms and strategic partnerships, launching and managing a white-labeled telecom practice has never been more achievable. The complexity is real—but the tools to automate and outsource it are already in place.
A purpose-built billing engine for telecom and usage-based services. Rev.io automates:
Telecom taxes are significantly more complex than sales tax—but CereTax handles it in real time. It ensures:
Filing requirements change constantly. TaxConnex takes that off your plate entirely by:
“We take the guesswork out of telecom taxes,” said Brent Reeves of CereTax. “With the right partners, MSPs can scale telecom services without becoming compliance experts.”
With this integrated approach, MSPs no longer need to hire telecom-specific tax attorneys or build billing systems from the ground up. There’s no need to juggle spreadsheets, cobble together CRMs, or risk falling out of compliance with ever-changing regulatory requirements. Instead, you get a purpose-built, pre-integrated tech stack that allows you to launch telecom services quickly, scale efficiently, and stay focused on what matters most—delivering value to your clients, expanding your service offering, and driving long-term revenue growth.
The difference between an agent model and a white-label model isn’t just theoretical—it’s measurable in real dollars.
A case study from Rev.io partner Altaworx perfectly illustrates the gap between commission-based earnings and owned recurring revenue. In this example, an MSP closed a 600-seat communications deal. Under the agent model, they earned just $15,000 in commission, due to caps and fixed-rate percentages from the upstream provider.
But had that same deal been structured under a white-label model, the financial outcome would have been dramatically different.
That’s 10x the return—from the exact same customer base.
“This isn’t just about making more money today,” said Usman Zahoor. “It’s about building a business that commands a higher valuation tomorrow. Commission caps limit your ceiling. White-labeling raises the floor.”
This is just one example, but it reflects a broader pattern: MSPs who own the revenue stream generate more profit, retain more control, and build more valuable businesses. Whether you're looking to boost monthly cash flow or improve your exit strategy, white-labeling creates leverage that simply doesn’t exist in referral models.
Expanding into telecom doesn’t require a massive team, deep telecom expertise, or a complete business overhaul. What it does require is the right mindset—and the right partners.
If you're an MSP looking to:
Then white-labeling telecom services may be the smartest strategic move you make this year.
Whether you’re just getting started or ready to scale, Rev.io’s all-in-one platform—combined with tax automation from CereTax and regulatory support from TaxConnex—makes launching and managing a telecom offering simple, scalable, and fully compliant.
Book a personalized Rev.io demo and discover how our platform helps MSPs like you automate billing, simplify tax compliance, and accelerate growth with telecom and UCaaS services.