Based on what we’ve seen at recent tradeshows, in conversations, and from new solutions hitting the market, it’s evident that telecom VARs and MSPs are joining forces to deliver a full technology stack to their clients. For MSPs, this presents a massive opportunity to make customers stickier and build additional recurring revenue, so why wouldn’t you do it?
For most MSPs, this isn’t about becoming a telecom company overnight. It’s about owning more of the customer relationship, increasing recurring revenue, and doing it without taking on unnecessary risk, compliance headaches, or billing complexity.
This convergence is largely driven by clients looking to consolidate vendors to save time and reduce operational overhead, benefits that add up month-over-month and year-over-year. From the VAR side of the business, we’ve seen firsthand the loyalty and trust MSPs have built with their clients. MSPs provide peace of mind and assurance that networks and data are properly protected. In short, MSPs earn trust by delivering high-quality service and being there when their customers need them most.
Recently, we’ve seen MSPs start to dip their toe into reselling telecom services. The biggest hurdle they face is taxation and compliance. Internet services are taxed differently than voice, and voice is different from data-only services. Because of this complexity, many MSPs choose to become agents of TSDs or Tier 1 carriers, opting for one-time spiffs instead of taking on that burden.
The problem is that this approach doesn’t fully solve the client’s need for vendor consolidation. While the MSP may help manage the upstream relationships, the client is still left juggling multiple vendors, multiple invoices, and multiple points of accountability.
We understand how cumbersome telecom reselling can be because it’s part of our own story. We were telecom agents until 2012, when we made the decision to become a reseller. Revenue, cash flow, and gross profit initially took a hit. But that shift allowed Altaworx to truly own the customer relationship. We no longer had to start over each month chasing the latest carrier spiff and instead began building real equity value. Over time, revenue, cash flow, and gross profit all rebounded, and the risk of changing our business model paid off.
For MSPs evaluating this path today, the question isn’t whether adding telecom services makes sense, it’s how to do it in a way that protects your business, preserves client trust, and supports long-term growth. Owning more of the stack can drive recurring revenue and equity value, but the real win is continuing to provide the peace of mind your customers already expect from you.
That’s exactly why we built our Catapult Incubator program. At its core, this enablement model is designed to help MSPs own the customer relationship while removing much of the friction that typically comes with telecom reselling. Catapult provides the billing, compliance, and software foundation needed to operate with confidence, so you can focus on what you do best: delivering great service and earning long-term trust.
If you want to learn more about the Catapult program, schedule a meeting with one of our resident experts.