U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

  [ X ] QUARTELY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                 For the quartely period ended December 31, 1999

                           COMMISSION FILE NO. 1-13134

                      AMERICAN NORTEL COMMUNICATIONS, INC.
                 (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)


                    WYOMING                             87-0507851
         (State or Other Jurisdiction of        (I.R.S. Employer I.D. No.)
         Incorporation or organization)

7201  EAST  CAMELBACK  ROAD,  SUITE  320
SCOTTSDALE,  AZ  85251
(Address of Principal Executive Office)


Issuer's Telephone Number:  (480) 945-1266

     INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
  REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934  during  the  preceding  12  months  (or  for  such shorter period that the
Registrant  was  required to file such), and (2) has been subject to such filing
requirements  for  the  past  90  days.

(1)Yes          / X  /    No     /   /

(2)Yes          / X /     No     /   /

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check  whether the registration filed all documents and reports required to
be  filed  by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of  securities  under  a  plan  confirmed  by  court.

          Yes   /   /     No  /   /

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Registrant's classes of
common  stock,  as  of  the  latest  practicable  date:

THERE WERE 15,403,785 SHARES OF THE REGISTRANT'S COMMON VOTING STOCK OUTSTANDING
ON  FEBRUARY  15,  2000


<PAGE>
<TABLE>
<CAPTION>
                          AMERICAN NORTEL COMMUNICATIONS, INC.
                               COMPARATIVE BALANCE SHEETS
                            AS OF DECEMBER 31, 1999 and 1998
                                       (UNAUDITED)

                                         ASSETS

                                                         1999               1998
                                                   ----------------  ----------------
<S>                                                <C>               <C>
CURRENT ASSETS:
  Cash in Bank                                          410,305.77   $    654,808.72
  Prepaid Expenses                                      253,062.11        757,875.63
  Intangible Debt Issue                                          -         16,200.00
  Accounts Receivable                                 3,561,597.02      1,873,816.82
  Marketable Securities Available for Sale            3,123,068.75                 -
                                                   ----------------  ----------------

    TOTAL CURRENT ASSETS                           $  7,348,033.65   $  3,302,701.17


PROPERTY AND EQUIPMENT:
  Telecommunications Property                             1,650.00          1,650.00
  Equipment                                              33,665.77         33,665.77
  Computer Equipment                                     43,349.23         38,271.01
  Furniture and Fixtures                                  4,660.00          4,660.00
LESS: Accumulated Depreciation                          (39,582.00)       (16,119.13)
                                                   ----------------  ----------------
    TOTAL PROPERTY AND EQUIPMENT                         43,743.00         62,127.65

OTHER ASSETS:
  Other Assets                                            6,666.94          6,666.94
  Due from Affiliates                                   406,390.00        276,869.68
  Deferred Tax Asset                                  1,160,000.00                 -
                                                   ----------------  ----------------

    TOTAL OTHER ASSETS                                1,573,056.94        283,536.62
                                                   ----------------  ----------------

    TOTAL ASSETS                                   $  8,964,833.59      3,648,365.44
                                                   ================  ================


                                       LIABILITIES

CURRENT LIABILITIES:
  Trade Accounts Payable                                826,807.42      1,349,146.21
  Trade Accounts Payable - Other                        362,189.00        439,327.00
  Accrued Expenses                                      135,887.80         13,210.61
  State Income Taxes Payable                            255,000.00                 -
  Notes Payable                                         453,000.00        650,000.00
  Accrued Interest Payable                               49,416.25        409,989.00
  Notes Payable Southwest Security                       99,181.29                 -
                                                   ----------------  ----------------

    TOTAL CURRENT LIABILITIES                         2,181,481.76      2,861,672.82

LONG-TERM LIABILITIES:
  Converted Debentures                                           -         18,750.00
  Unearned Revenues Marketable Securities             1,212,201.25                 -
                                                   ----------------  ----------------

    TOTAL LONG-TERM LIABILITIES                       1,212,201.25         18,750.00
                                                   ----------------  ----------------

    TOTAL LIABILITIES                                 3,393,683.01      2,880,422.82

                                  STOCKHOLDERS' EQUITY

  Common Stock                                       21,938,202.00     22,073,002.00
  Treasury Stock                                       (117,000.00)      (270,000.00)
  Additional Paid In Capital                             50,595.00                 -
  Retained Earnings(Loss)                           (16,300,646.42)   (21,035,059.38)
                                                   ----------------  ----------------

    TOTAL STOCKHOLDERS' EQUITY                        5,571,150.58        767,942.62
                                                   ----------------  ----------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $  8,964,833.59      3,648,365.44
                                                   ================  ================
</TABLE>

       See the accompanying notes to these unaudited financial statements


<PAGE>
<TABLE>
<CAPTION>
                                   AMERICAN NORTEL COMMUNICATIONS, INC.
                                         STATEMENTS OF CASH FLOWS
                FOR THE PERIOD ENDED DECEMBER 31, 1999 AND PERIOD ENDED SEPTEMBER 30, 1999
                                                (UNAUDITED)


                                                                               2ND QTR          1ST QTR
                                                                           ---------------  --------------
<S>                                                                        <C>              <C>
  CASH FLOWS FROM OPERATING ACTIVITIES
    Net Income                                                             $   699,266.33   $1,396,650.25
    Adjustments to reconcile net income to net cash provided by operating
      activities.
      Depreciation and amortization                                              3,600.00        3,600.00
      Expenses paid with common stock                                                   -       27,000.00
      Sale of common stock                                                     (11,505.77)

    (Increase) decrease in:
      Trade accounts receivable                                                 94,271.38     (715,014.40)
      Prepaid expenses                                                          20,851.17      139,728.72

    Increase (decrease) in:
      Trade accounts payable                                                   (55,153.00)    (647,314.58)
      Accrued interest                                                           4,005.00        5,411.31
      State income taxes payable                                                65,000.00       80,000.00
      Accrued payroll taxes                                                     34,266.58       50,829.86
                                                                           ---------------  --------------
          NET CASH PROVIDED BY OPERATING ACTIVITIES                            854,601.69      340,891.16


  CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of marketable equity securities                                (1,216,141.15)    (140,000.00)
    Advances to affiliates                                                     (30,000.00)
    Purchases of property and equipment                                         (5,078.22)              -
                                                                           ---------------  --------------
          NET CASH (USED) BY INVESTING ACTIVITIES                           (1,221,219.37)    (170,000.00)


  CASH FLOWS FROM FINANCING ACTIVITIES
    Short-term installment loan                                                300,000.00
    Short-term investment margin                                                99,181.29
    Payment on notes payable                                                   (45,500.00)    (465,500.00)
                                                                           ---------------  --------------
          NET CASH PROVIDED BY FINANCING ACTIVITIES                            353,681.29     (465,500.00)

        NET INCREASE (DECREASE) IN CASH                                        (12,936.39)    (294,608.84)

        CASH AT BEGINNING OF PERIOD                                            423,242.16      717,851.00
                                                                           ---------------  --------------
              CASH AT END OF PERIOD                                        $   410,305.77   $  423,242.16
                                                                           ===============  ==============
</TABLE>

       See the accompanying notes to these unaudited financial statements


<PAGE>
<TABLE>
<CAPTION>
                                      AMERICAN NORTEL COMMUNICATIONS, INC.
                                      COMPARATIVE STATEMENT OF OPERATIONS
                                FOR THE PERIOD ENDING DECEMBER 31, 1999 AND 1998
                                                  (UNAUDITED)


                                                         FISCAL YEAR 2000               FISCAL YEAR 1999

                                                  2ND QUARTER      YEAR TO DATE    2ND QUARTER     YEAR TO DATE
                                                 --------------  ---------------  --------------  -------------
<S>                                              <C>             <C>              <C>             <C>
INCOME
  Airtime Income                                 $6,021,528.87    12,784,932.82   $4,152,601.58   7,257,826.89


COST OF SALES                                     4,746,569.66     9,341,875.63    2,925,874.00   5,180,814.12

                                                 --------------  ---------------  --------------  -------------
GROSS PROFIT                                      1,274,959.21     3,443,057.19    1,226,727.58   2,077,012.77

  SELLING EXPENSES                                  222,911.74       559,129.19       86,059.12     170,112.87

  GENERAL & ADMINISTRATIVE                          266,117.54       619,465.49      234,018.43     425,963.43
                                                 --------------  ---------------  --------------  -------------
    TOTAL EXPENSES                                  489,029.28     1,178,594.68      320,077.55     596,076.30

    EARNINGS (LOSS) FROM OPERATIONS                 785,929.93     2,264,462.51      906,650.03   1,480,936.47

OTHER INCOME (EXPENSE)
  Other Income                                               -        19,962.00          218.82         218.82
  Interest Income                                     2,206.58         4,277.50        2,248.82       2,906.39
  Interest Expense                                  (23,870.18)      (47,785.43)     (13,500.00)    (27,000.00)
                                                 --------------  ---------------  --------------  -------------
    TOTAL OTHER INCOME                              (21,663.60)      (23,545.93)     (11,032.36)    (23,874.79)

  NET INCOME BEFORE INCOME TAXES                    764,266.33     2,240,916.58      895,617.67   1,457,061.68

  Provisions for State Income Taxes                  65,000.00       145,000.00               -              -

                                                             -
NET INCOME (LOSS)                                $  699,266.33     2,095,916.58   $  895,617.67   1,457,061.68
                                                 ==============  ===============  ==============  =============

EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE BEFORE INCOME TAXES     $        0.05                    $         0.06
                                                 --------------                  ---------------

WEIGHTED AVERAGE NUMBER OF COMMON                   15,403,785                        14,381,606
                                                 --------------                   ---------------
   SHARES OUTSTANDING

BASIC EARNINGS PER SHARE                         $        0.05                    $         0.06
                                                 --------------                   ---------------

WEIGHTED AVERAGE NUMBER OF COMMON                   15,403,785                        14,381,606
                                                 --------------                   ---------------
   SHARES OUTSTANDING

DILUTED EARNINGS PER SHARE BEFORE INCOME TAXES   $        0.05                    $         0.06
                                                 --------------                   ---------------

WEIGHTED AVERAGE NUMBER OF COMMON                   15,403,785                        14,387,450
                                                 --------------                   ---------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING

DILUTED EARNINGS PER SHARE                       $        0.05                    $         0.06
                                                 --------------                   ---------------

WEIGHTED AVERAGE NUMBER OF COMMON                   15,403,785                        14,387,450
                                                 --------------                   ---------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING
</TABLE>

       See the accompanying notes to these unaudited financial statements


<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.

                   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


The  accounting  policies  followed  by the Company, and the methods of applying
those  policies,  which  materially  affect  the  determination of its financial
position,  results  of  operations,  or  cash  flows  are  summarized  below:

UNAUDITED  INFORMATION  AND  BASIS  OF  PRESENTATION

The  balance  sheet  as of December 31, 1999 and statement of operation and cash
flows for all periods included in the accompanying financial statements have not
been  audited.  In  the opinion of management these financial statements include
all  normal  and recurring adjustments necessary for a fair presentation of such
financial  information.  The  results  of operations for the interim periods are
not  necessarily  indicative on the results of operations to be expected for the
fiscal  year.

The  financial  information  included  herein  has been prepared pursuant to the
rules  and  regulations  of  the  Securities  and  Exchange Commission.  Certain
information  and  footnote disclosures normally included in financial statements
prepared  in  accordance with generally accepted accounting principles have been
omitted  pursuant  to  such  rules  and  regulations.  The  interim  financial
information and the notes thereto should be read in conjunction with the audited
financial statements for the fiscal year-ended June 30, 1999 which were included
in  the  Company's  10-KSB  Annual  Report  to  Stockholders.

ADVERTISING  COSTS

Advertising  production  costs,  except  for costs associated with marketing are
charged  to  operations  when  incurred.  Costs  associated  with  marketing are
amortized  based  on  management's  forecasted  analysis  consistent  with prior
marketing  efforts.

CASH  AND  CASH  EQUIVALENTS,  SHORT  AND  LONG-TERM  INVESTMENTS

All  highly liquid instruments with an original maturity of three months or less
are  considered  cash  equivalents,  those with original maturities greater than
three  months  and  current  maturities less than twelve months from the balance
sheet  date  are  considered  short-term  investments, and those with maturities
greater  than twelve months from the balance sheet date are considered long-term
investments.

CONCENTRATION  OF  CREDIT  RISK

The  Company  maintains  its  cash  balances  in  two banks in Phoenix, Arizona.
Accounts  at  each  institution  are  insured  up  to  $100,000  by  the Federal
Depository  Insurance  Corporation (FDIC).  The Company maintains its investment
balances  with  two  brokerage firms.  Accounts at these firms are insured up to
$500,000  by  the  Security  Investor  Protection  Corporation  (SPIC).


<PAGE>
DEPRECIATION  AND  AMORTIZATION

Property  and  equipment  are  stated  at  cost  and  depreciated  using  the
straight-line  method  over  the estimated useful lives of the assets, generally
five  to  seven years.  The Company periodically evaluates the recoverability of
its  long-lived  assets based on expected undiscounted cash flows and recognizes
impairments,  if  any,  based  on  expected  discounted  future  cash  flows.

REVENUE  RECOGNITION

The  Company's  revenues  are  derived  principally from long distance telephone
service.  Revenue is recorded when service is rendered, which is recorded when a
long  distance  call  is  completed,  and  is  recorded  net of an allowance for
amounts,  which  the Company estimates will be refunded, rebated, uncollectable,
or  not  billable.

MARKETING  COSTS

Direct response marketing costs, primarily incurred through contracted telephone
solicitation  of  prospective  accounts,  are  deferred  and  amortized over the
average  life  of  the  new  accounts,  which  is  normally six to eight months.

INCOME  TAXES

The  provision  for  income  taxes includes deferred income taxes resulting from
temporary differences in the recognition of certain income and expense items for
financial  reporting  purposes  in  different  periods  than  for  tax purposes.

FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS

The  carrying  amounts  for  cash,  investments  in marketable securities, trade
accounts  receivable,  advances  to  control  group,  accounts payable, disputed
claims,  accrued liabilities, and notes payable approximate their fair value due
to the short maturity of these instruments.  The Company has determined that the
recorded  amounts  approximate  fair  value.

USE  OF  ESTIMATES

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities,  and disclosure of
contingent  assets  and liabilities at the date of the financial statements, and
the  reported  amounts  of  revenues  and  expenses  during the reported period.
Actual  results  could differ from those estimates.  Material estimates that are
particularly  susceptible  to  significant change relate to the determination of
the  collectability  of  receivables  and  advances, the valuation allowance for
deferred  tax  assets, and the amortization period for deferred marketing costs.

COMMON  STOCK

Transactions in the Company's common stock issued for the acquisition of assets,
products  or services are accounted for at fair value.  Fair value is determined
based  on  the  Company's traded closing price on the date of the transaction or
the  fair  value of the asset, product or service received, whichever fair value
is  more  readily  determinable.

RECENT  ACCOUNTING  PRONOUNCEMENTS:  NONE


<PAGE>
                           PART II - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

               NONE;  NOT  APPLICABLE.

ITEM  2.  CHANGES  IN  SECURITIES.

               NONE;  NOT  APPLICABLE.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES.

               NONE;  NOT  APPLICABLE.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

               NONE;  NOT  APPLICABLE.

ITEM  5.  OTHER  INFORMATION.

               NONE;  NOT  APPLICABLE.

ITEM  6:  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
          RESULTS  OF  OPERATIONS

     Certain  statements  in  this  report  are  forward looking statements that
involve  risks  and  uncertainties.  Among  the  factors that could cause actual
results  to  differ  materially  from  those  described  in such forward looking
statements  are  the  following:  the  Company's ability to manage rapid growth;
litigation;  changes  in  regulations  which  change the costs to the Company of
conducting  its  business;  competition  in the long distance telecommunications
market,  especially  price  competition; the Company's ongoing relationship with
its  long distance carriers; dependence upon key personnel; subscriber attrition
and  the  Company's  success  in  marketing  its  telecommunication services and
programs  to  new  subscribers;  the  adoption of new, or changes in, accounting
policies,  practices,  and  estimates  and  the  application  of  such policies,
practices,  and estimates; federal and state governmental regulation of the long
distance  telecommunications  industry; the Company's ability to develop its own
long  distance  network; the Company's ability to maintain, operate, and upgrade
its  information  systems;  and  the  Company's  success  in offering additional
communications  products  and  services.

     In  the quarter ended December 31, 1999, the Company provided long distance
service  as  a  reseller.  The Company has also implemented a strategy to target
markets  that  have high volumes of U.S. domestic calls and international calls.
International  calling  represents  approximately  10% of the Company's revenues
during the quarter ended December 31, 1999.  During the quarters ended September
30,  1999  and  June 30, 1999, internationally calling represented approximately
10%.

Price  competition  in  the  U.S.  domestic long distance market continued to be
intense  during  the  quarter,  and  has  had an adverse effect on the Company's
margins.  Because  the  Company  foresees  no  factors that are likely to lessen
price  competition,  during  1999 the Company began to target market groups that
make  international  calls, since the pricing pressures in international calling
are  less intense at the present time than is the case with the domestic market.
The  Company  has  also  in  recent period sought to offset the effects of price
competition  by  seeking  investment  opportunities  in  enterprises outside its
general  industry  group.  At December 31, 1999, the Company held its securities
issued  by  the  following:


<PAGE>
On  July  21, 1999, the Company purchased for investment 1,000,000 shares of SHC
Corporation  a/k/a  Victor  Maxx  Technologies,  Inc.  SHC  Corporation  is  an
OTC:Bulletin  Board  stock  company  whose  common stock trades under the symbol
VMAX.  This  company  specializing  in  short-term  lending  to consumers.   The
acquisition  price  was  $140,000,  or  14  cents  per  share.

On  October  22,  1999,  the  Company  purchased for investment 19,400 shares of
American  Educational Products Inc., the company is an OTC: Bulletin Board stock
company  whose  common  stock  shares trades under the symbol AMEP.  The company
promotes  and facilitates its products conducive to an environment that embraces
learning.  The  acquisition  price  was  $210,467,  or  $10.75  per  share.

     On October 26, 1999, the Company purchased for investment 250,000 shares of
PTN  Media a/k/a PTN Media, Inc., OTC: Bulletin Board stock company whose common
stock  shares  trades  under  the symbol PTNM.  The company develops and markets
multi-media  products.  The  acquisition price was $500,000, or $2.00 per share.

On  November  15, 1999, the Company purchased for investment 1,211,111 shares of
MedCom  USA,  Inc.,  OTC: Bulletin Board stock company whose common stock shares
trades  under  the  symbol  EMED.  The  company  markets  online medical billing
services.  The  acquisition  price  was  $500,000,  or  45  cents  per  share.

Results  of  Operations

Quarter  Ended  December  31,  1999 Compared to Quarter Ended December 31, 1998.

     Revenues  for  the quarter ended December 31, 1999 increased to $6,021,528,
or 45%, from $4,152,601 during quarter ended December 31, 1998.  The increase in
revenue  resulted  primarily  from  growth in the volume of calls by subscribers
using the Company's basic 1 Plus and 800 long-distance service.  The Company has
purchased  new  accounts and has increased the size of its customer base through
the  use  of  outside  telemarketers.  The Company increased its market share in
large  call volume areas, and has concentrated additional marketing resources on
international calling, which has higher profit margins than in the U.S. domestic
long  distance market, and which is not currently being directly affected by the
intense  pricing  competition which exists in the domestic calling market during
the  1999  quarter.  The  Company  is  been  better  able  to control subscriber
attrition  ratios, which it attributes to better and more cost-effective service
to  its  customers.

     Costs  of sales was $4,746,570, or 78.8% of total revenues, for the quarter
ended  December  31,  1999, compared to $2,925,874, 70.5% of total revenues, for
the  same  period  in the prior year.  Cost of sales is comprised principally of
the  costs  the  Company  pays to the long distance service providers whose long
distance  networks the Company uses for its customers calls.  The increased cost
was  due  primarily  to the increased revenues.  The increase as a percentage of
total  revenues  principally  reflects  the  effects of price competition, which
narrows  the  spreads between the price at which the Company bills its customers
for  long  distance  calls and the price that the Company pays for access to the
long  distance  calling  networks owned by the carriers.  The Company expects to
see  the  margins  on  customer  revenues  from  U.S. domestic calls continue to
decrease  as  a  result  of  continued  pricing  competition.

     Selling  expenses  for  the  quarter  ended  December 31, 1999 increased to
$222,912,  or  159%,  from  $86,059  during quarter ended December 31, 1998. The
increase  in  selling  expenses  was  a  result of telemarketing campaigns.  The
Company increased its telemarketing campaigns and maintained the overall size of
its  customer  base.  The  size  of  the  Company's  customer base is materially
affected  by  price  competition,  which  the  Company believes is the principal
factor  that  affects the Company's customer attrition rates marketing campaigns
by  competitors  can  have  a  significant effect on the attrition rate that the
Company  experiences  from  time  to  time.  The  Company  attempts to stage its
marketing  campaigns  to  at  least match new customer accounts with anticipated
attrition  rates.  However,  unanticipated  increases  in the attrition rate can


<PAGE>
have  a  significant  effect on the Company's revenues and expense levels during
any  financial  reporting  period.  The  Company  will  generally  respond to an
increase  in the attrition rate by increasing its telemarketing campaigns, which
will  increase selling expenses during the period which the campaign occurs.  An
increase  in  the  attrition  rate  will also have an adverse effect on revenues
because,  when  the increase in the attrition rate occurs, the Company ceases to
receive  any  revenue from those customers who switched to another long distance
carrier.  Until  those customers are replaced through telemarketing campaigns or
otherwise, the revenues that had been associated with their accounts will not be
received.  Consequently,  the  effects of pricing competition can cause material
variations  in the Company results of operations from period to period, and make
it  unlikely  that  the  Company  will  be able to sustain the level of earnings
achieved  during  recent  quarterly  periods.

     General  and  administrative  expenses  for quarter ended December 31, 1999
increased  12% to $266,117 from $234,018 during quarter ended December 31, 1998.
The  increase resulted from the Company increasing its customer service staffing
to  provide  better  services  to its customers.  The Company has maintained the
number  of its customer service representatives to provide bi-lingual assistance
to  non-English speaking customers.  The Local Exchange Carriers (LEC) have been
continually  increasing the costs of wholesale traffic through its long distance
switching,  and  the  Company  anticipates  that  this  trend  will  continue.

     Interest  expense  for  the  quarter  ended  December 31, 1999 increased to
$23,870  from  $13,500  during quarter ended December 31, 1998.  The increase in
interest  expense  was  a  result  of an increase in debt outstanding, which was
incurred  in  connection  with the Company's acquisitions of AMEP, PTNM and EMED
common  stock  in  October  and  November of 1999.  The acquisitions were funded
through  securing  outside  financing  from  First  Star  Financial.

     Net earnings for the quarter ended December 31, 1999 were $699,266, or $.05
per  diluted  share,  compared  to  $895,618,  or  $.06 per diluted share during
quarter  ended  December  31,  1998.


Liquidity

     The Company has funded its working capital requirements primarily from cash
provided by operating activities.  Net cash provided by operating activities for
the quarter ended December 31, 1999 is $854,602, compared to $340,891 during the
quarter  ended September 30, 1999.  The principle source of revenue is generated
from  sales  of  long  distance  service  to  the  Company's  customers.

Capital  Resources

     Cash  flows  used  by  investing  activities was $1,221,219 for the quarter
ended  December  31, 1999.  The Company purchased computer equipment for $5,078.
Additionally,  the  Company  has  purchased  the following stock for investment:

<TABLE>
<CAPTION>
Date Purchased  Symbol     # Shares   Cost Per Share
--------------  ---------  ---------  ---------------
<C>             <S>        <C>        <C>
      04/23/99      DNTK   1,060,069  $           .53
      07/21/99      VMAX   1,000,000              .14
      10/22/99      AMEP*     19,400            10.75
      10/26/99      PTNM*    250,000             2.00
      11/15/99      EMED*  1,211,111              .45
<FN>
     *The  Company,  for  the  quarter  ended  December  31,  1999 purchased for
investment 19,400 shares of common stock of American Educational Products, Inc.,
(AMEP), and purchased 250,000 shares of common stock of PTN Media, Inc., (PTNM),
and  purchased  1,111,111  shares  of  common stock of MedCom USA, Inc., (EMED).
</TABLE>


<PAGE>
     Cash  flows  provided for financing activities were $353,681 in the quarter
ended December 31, 1999.  This cash inflow was attributed to an installment loan
obligation  for  $300,000,  and  for  an  investment  interest margin of $99,181
secured  for  the  purpose  of  investment  in marketable securities.  Also, the
Company  has  paid  notes payable to unrelated third parties on terms negotiated
with  note  holders.  During  the  quarter, the Company paid $45,500 under these
third  party notes. The notes represent obligations incurred by prior management
in 1993, which were re-negotiated with pay off, default, and maturity provisions
more  favorable  to  the  Company  than  the  original  note  terms.


ITEM  7.  EXHIBITS

The  exhibits  filed  as  part  of  this  report  are  as  follows:


Exhibit  11
COMPUTATION OF EARNINGS PER SHARE


Exhibit  27:
FINANCIAL  DATA  SCHEDULE


<PAGE>
                                   SIGNATURES


Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
Registrant has duly caused this report to be signed on behalf by the undersigned
thereunto  duly  authorized.

                      AMERICAN NORTEL COMMUNICATIONS, INC.

               Date: February 11, 2000 by: /S/ W.P. Williams, Jr.

                          W.P. WILLIAMS, JR., Director
                             Chief Executive Officer


<PAGE>