Top 5 Takeaways: 

• Telecom is a high-growth market projected to reach $210B by 2028—telecom MSPs are ideally positioned to capitalize on it.
• White-labeling beats agent models with higher margins (60–80%), stronger client control, and better long-term value.
• Owned recurring revenue boosts valuation, with white-label deals adding 5–10x more EBITDA impact than commission-based models.
• A complete backend tech stack exists—Rev.io, CereTax, and TaxConnex simplify billing, tax, and compliance so telecom MSPs can scale quickly.
• Even one deal can make a major impact—white-labeling can turn a $15K commission into $160K+ in ARR and $300K+ in valuation.
  
  

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.

Why the Timing Is Right: A $210 Billion Market Opportunity

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:

1. The market is exploding

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.

2. Clients are already asking for it

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.

3. Recurring revenue Is the name of the game

UCaaS and telecom services are high-margin, subscription-based, and deeply integrated into daily operations, making them stickier than many traditional IT services.

4. It builds a competitive edge

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.

Two Market Entry Paths for MSPs: Agent vs. White-Label

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.

1. The Agent or Referral Model (Low-effort, low-return)

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:

• Fast to implement with little to no operational lift
• No responsibility for telecom tax, billing, or regulatory filings
• Low barrier to entry—great for testing initial interest

Cons:

• Commissions are typically capped at 15–25%, with limited ability to scale
• MSPs don’t control branding or the customer experience
• Commission structures may diminish or phase out over time
• No real ownership of the recurring revenue or long-term account

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.”

2. The White-Label Provider Model (Higher-effort, high-return)

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:

• Margins often range from 60% to 80%
• Full control over branding, pricing, and packaging
• You maintain the customer relationship from end to end
• Increases your company’s recurring revenue and business valuation

Cons:

• Requires initial setup of billing systems, tax compliance, and service infrastructure (though turnkey solutions and partners can simplify this)

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.”

Why White-Labeling Builds Real Business Value

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:

1. Stronger margins = higher profitability

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.

2. Recurring Revenue That You Own

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.

3. Higher EBITDA multiples

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.

4. Increased exit value

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.

5. Brand equity and differentiation

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.”

What Services Can You Offer as a White-Label Provider?

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.

1. VoIP & UCaaS (Unified Communications as a Service)

The foundation of modern business communication—offering features like call routing, virtual phone systems, and collaboration tools. Includes integrations with:

• Microsoft Teams (voice enablement)
• Zoom Phone
• Cisco Webex and more

2. Business Internet & SD-WAN

Provide broadband access, redundancy, and intelligent traffic routing to improve uptime and application performance.

3. Mobile Voice & Data (Mobility)

Offer business mobile plans under your own brand—ideal for companies with distributed or remote teams.

4. IoT Connectivity

Serve customers deploying smart devices, sensors, or GPS-enabled assets with white-labeled IoT data plans and monitoring tools.

5. Managed Fax, Call Analytics & Voice Add-ons

Provide value-added services like eFax, call recording, call analytics, and E911—all white-labeled under your MSP brand.

6. Security & Compliance Services

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.”

Simplifying Compliance and Billing: Why You Don’t Have to Go It Alone

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.

1. Rev.io – Billing & customer management

A purpose-built billing engine for telecom and usage-based services. Rev.io automates:

• Usage tracking and rating
• Custom, branded invoicing
• Auto-pay, collections, and dunning
• Real-time reporting and customer portals

2. CereTax – Telecom Tax Calculation

Telecom taxes are significantly more complex than sales tax—but CereTax handles it in real time. It ensures:

• Accurate tax rates per jurisdiction
• Real-time application of federal, state, and local fees
• Integration with Rev.io for seamless quote-to-cash workflows

3. TaxConnex – Regulatory Filing & Remittance

Filing requirements change constantly. TaxConnex takes that off your plate entirely by:

• Registering your business in necessary jurisdictions
• Filing all required communications and regulatory tax returns
• Managing remittance deadlines and audit support

“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.

Real-World Impact: How One Deal Could Be Worth 10x More

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.

White-Label Potential:

• $160,000+ in annual recurring revenue (ARR)
• Over $100,000 in annual profit
  $300,000+ in added business valuation (based on common EBITDA multiples for recurring revenue)

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.

Conclusion: Is White Labeling Right for You?

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:

• Add high-margin, recurring revenue to your business
• Strengthen client relationships and reduce churn
• Differentiate yourself in an increasingly competitive market
• Increase your company’s long-term valuation

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.