517121 - Telecommunications Resellers
In today’s hyperconnected world, telecommunications services form the backbone of business operations and daily life. If you are navigating the telecommunications industry or government contracting, understanding NAICS code 517121 — Telecommunications Resellers — is essential. This code captures a vital segment of the telecommunications market, where businesses resell network access and services without owning the actual infrastructure.
What is NAICS Code 517121?
NAICS code 517121 specifically pertains to establishments primarily engaged in purchasing access and network capacity from telecommunications carriers and reselling those services to end-users such as businesses and households. Unlike traditional telecom carriers, these resellers do not own the physical network infrastructure but offer a broad range of telecommunication services, including:
- Local and long-distance voice communication
- Data transmission
- Internet access
They act as intermediaries between infrastructure owners and consumers, providing flexible and often cost-effective telecommunications solutions.
Sector: Information
NAICS 517121 falls under the broader Information sector, which covers industries involved in producing and distributing information and cultural products, providing the means to transmit or distribute these products, as well as data processing services.
Typical Business Types Under NAICS 517121
Businesses operating under this code are diverse, including but not limited to:
- Mobile Virtual Network Operators (MVNOs): Companies that lease wireless network capacity from major carriers to offer mobile service plans under their own brand.
- Internet Service Resellers: Organizations that purchase internet access bandwidth and resell it to residential or commercial customers.
- Long-Distance Telephone Service Providers: Resellers offering long-distance calling services without owning underlying telephone infrastructure.
These business types operate by leveraging existing network capacity, adding value through pricing, customized service plans, or specialized customer service.
Size Standards & Eligibility for Government Contracting
For small business eligibility under the Small Business Administration (SBA) size standards, businesses under NAICS code 517121 typically:
- Should have no more than 1,500 employees to qualify as a small business.
Understanding this size standard is crucial when pursuing government contracts or grants targeting small businesses in telecommunications resale services.
Examples of Telecommunications Resellers (NAICS 517121)
Some well-known companies classified under this code include:
- FreedomPop: An MVNO offering affordable mobile data and voice plans.
- EarthLink: An internet service reseller selling broadband to residential customers.
- Lumen Technologies (formerly CenturyLink): Offers voice and data communication services by reselling network access.
These companies exemplify how resellers function in the telecom ecosystem, providing competitive service options without owning infrastructure.
FAQ: Telecommunications Resellers (NAICS 517121)
Q1: Do telecommunications resellers own physical network infrastructure?
A: No. Telecommunications resellers purchase network access from carriers and resell services without owning the physical infrastructure.
Q2: What services do resellers provide?
A: They provide services such as local and long-distance voice calls, data transmission, and internet access.
Q3: What types of businesses fall under NAICS 517121?
A: MVNOs, internet service resellers, and long-distance telephone service providers primarily.
Q4: What is the employee size limit for small business qualification under this code?
A: Businesses with 1,500 or fewer employees typically qualify as small businesses for contracting purposes.
Q5: Why is NAICS code important for government contractors?
A: It identifies industry classification, helps determine eligibility for contracts, and assists in market research.
Conclusion
NAICS code 517121 - Telecommunications Resellers - represents a crucial segment of the Information sector focused on reselling telecommunications services without owning infrastructure. Whether you are a business owner in the telecom resale space or a government contractor seeking to understand this industry classification, knowing the details of NAICS 517121 can improve your market positioning and contracting opportunities.
By understanding the scope, sector, business types, and size standards under this code, you can better navigate the telecommunications landscape and leverage the benefits of reselling services in today’s competitive market.
Keywords: NAICS code 517121, Telecommunications Resellers, MVNOs, Internet service resellers, telecommunications services, telecommunications resellers sector, small business size standards, government contracting telecommunications.
