NAICS 517 - Telecommunications

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Key Terms

NAICS 51 telecommunications VoIP broadband services satellite communication cable television distribution Internet access network infrastructure data transmission secure communications 5G deployment telephony services government contracts performance-based contracts IDIQ contracts

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Related NAICS Codes for NAICS 517

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What is NAICS 517

The Telecommunications subsector, designated by NAICS code 517, comprises establishments primarily engaged in providing telecommunications services and related activities. This includes the transmission of voice, data, text, sound, and video through various technologies such as traditional telephony, Voice over Internet Protocol (VoIP), cable and satellite television distribution, and Internet access services. Companies within this sector operate or grant access to the infrastructure necessary for communication networks, which may involve a single technology or a hybrid of multiple technologies. Government agencies contract these services to ensure reliable, secure, and scalable communication channels essential for military, emergency response, and administrative operations. Telecommunications services enable critical data exchange, mission command, and public safety communications, making this sector vital for government functionality and national security.

Industry Classification for NAICS 517

Industries in the Telecommunications subsector group establishments that provide telecommunications and the services related to that activity (e.g., telephony, including Voice over Internet Protocol (VoIP); cable and satellite television distribution services; Internet access; telecommunications reselling services). The Telecommunications subsector is primarily engaged in operating and/or providing access to facilities for the transmission of voice, data, text, sound, and video. Transmission facilities may be based on a single technology or a combination of technologies.

Establishments primarily engaged as independent contractors in the installation and maintenance of telecommunications systems are classified in Sector 23, Construction.

Breakdown for NAICS 517

  • Covers establishments providing telecommunications and related services.
  • Includes transmission of voice, data, text, sound, and video.
  • Facilities may use single or multiple technology platforms.
  • Excludes installation and maintenance contractors (classified in Construction Sector 23).
  • Focuses on operating or providing access to telecom infrastructure.
  • Serves both commercial and government customers.

Included Activities for NAICS 517

  • Providing voice communication services including VoIP.
  • Distributing cable and satellite television services.
  • Offering Internet access and broadband services.
  • Reselling telecommunications services to end users.
  • Operating telecommunication transmission facilities.
  • Managing data, video, and text transmission networks.
  • Supporting emergency communication systems.
  • Maintaining network infrastructure for government clients.

Business Types for NAICS 517

  • Telecommunications carriers
  • Internet service providers (ISPs)
  • Satellite communication companies
  • Cable and broadcast television distributors
  • Telecom resellers and aggregators
  • Network infrastructure operators

Government Buyers for NAICS 517

Federal, state, and local government agencies are primary buyers of telecommunications services, including the Department of Defense, Homeland Security, Federal Communications Commission, and various public safety and emergency management offices. These agencies require robust and secure telecommunications infrastructure to support mission-critical communications, secure data transmission, emergency alert systems, and broadband connectivity in remote or underserved areas. Additionally, government contracting for telecommunications ensures compliance with regulatory standards, facilitates interoperability among agencies, and supports modernization initiatives such as the expansion of 5G networks and cloud-based communication solutions.

Contract Types & Procurement for NAICS 517

Contracts in the telecommunications sector often include firm-fixed-price, indefinite delivery/indefinite quantity (IDIQ), and cost-plus contracts, depending on the scope and complexity of the service or infrastructure deployment. Procurement methods range from competitive bidding to simplified acquisition procedures for smaller contracts. Typical contract values vary widely, from small service agreements for local government entities to multimillion-dollar infrastructure projects for federal agencies. Many contracts also incorporate performance-based contracting elements to ensure service level agreements (SLAs) are met, especially for critical communication systems supporting national security and emergency response.

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