Yes, telco is in the scrabble dictionary

...and is worth 9 points by itself.

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Telco Definition

noun

A telephone company.
from The American Heritage Dictionary of the English Language, 4th Edition
A telecommunications company.
from Free Scrabble Dictionary

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Top Words by points

Points

telco

7

2 letter words with TELCO

Points

to

2

te

2

oe

2

el

2

et

2

lo

2

3 letter words with TELCO

Points

col

5

toe

3

tel

3

tec

5

ole

3

lot

3

let

3

eco

5

cot

5

cel

5

4 letter words with TELCO

Points

cote

6

colt

6

cole

6

clot

6

celt

6

tole

4

5 letter words with TELCO

Points

telco

7

Found 23 words in 0.13621 seconds