================================================================================

                     U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                              ____________________

                                   FORM 10-QSB
                              ____________________

            (Mark  One)
            [X] Quarterly Report Pursuant to Section 13 or 15(d) of
                      the Securities Exchange Act of 1934

            For the quarterly period ended March 31, 2001

            [ ] Transition Report Pursuant to Section 13 or 15(d)
                         of the Securities Exchange Act

            For the transition period from _____________ to _______________

                              ____________________

                          Commission File No. 1-13134
                              ____________________

                      AMERICAN NORTEL COMMUNICATIONS, INC.
        (Exact name of small business issuer as specified in its charter)

          Wyoming                                          87-0507851
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

                      7201 East Camelback Road, Suite 320
                              Scottsdale, AZ 85251
                    (Address of principal executive offices)

                                 (480) 945-1266
                          (Issuer's telephone number)

     Check whether the issuer (1) filed all reports required to be filed by
 Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
 shorter period that the registrant was required to file such reports), and (2)
       has been subject to such filing requirements for the past 90 days.

Yes     X          No
       ---              ---

     The  number of shares of the issuer's common equity outstanding as of April
30,  2001  was  15,273,785  shares  of  common  stock,  par  value  $.001.

     Transitional  Small  Business  Disclosure  Format  (check  one):

Yes               No     X
       ---              ---

================================================================================


                                        1
<PAGE>
                      AMERICAN NORTEL COMMUNICATIONS, INC.
                           INDEX TO FORM 10-QSB FILING
                      FOR THE QUARTER ENDED MARCH 31, 2001

                               TABLE  OF  CONTENTS

                                   PART  I
                             FINANCIAL  INFORMATION                         PAGE

Item  1.     Financial  Statements
                  Balance  Sheets
                         March 31, 2001 (unaudited) and June 30, 2000 . . . .  3
                  Statements  of  Operations
                         For the Three Months and Nine Months Ended
                         March 31, 2001 (unaudited) and 2000 (unaudited). . .  4
                  Statements  of  Cash  Flows
                         For the Three Months and Nine Months Ended
                         March 31, 2001 (unaudited) and 2000 (unaudited). . .  5
                  Notes  to  the  Financial  Statements . . . . . . . . . . .6-8

Item  2.     Management's  Discussion  and  Analysis  of Financial
                  Condition and Results  of  Operations. . . . . . . . . . .9-14

                                     PART II
                                OTHER INFORMATION

Item  1.     Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . 15
Item  6.     Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . 16


                                   SIGNATURES


                                        2
<PAGE>
<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS


                                     AMERICAN NORTEL COMMUNICATIONS, INC.
                                          COMPARATIVE BALANCE SHEET
                                    AS OF MARCH 31, 2001 AND JUNE 30, 2000
                                                  (UNAUDITED)

                                                    ASSETS

                                                                     MARCH 31, 2001                JUNE 30, 2000
<S>                                                          <C>            <C>             <C>            <C>
CURRENT ASSETS:
  Cash and Cash Equivalents                                  $    559,224                   $  1,405,002
  Trade Accounts Receivable                                     2,836,497                      5,734,828
  Investments in marketable securities                          2,886,987                      7,947,051
  Prepaid Expenses                                                162,819                        143,129
  Notes Receivable                                                300,909                         80,509
  Deferred Income Taxes                                           395,240                         59,232
                                                             -------------                  -------------
    TOTAL CURRENT ASSETS                                                         7,141,677                    15,369,751


PROPERTY AND EQUIPMENT:
  Furniture and Fixtures                                            4,660                          4,660
  Equipment & Computer Equipment                                   78,948                         77,449
  Telecommunications Property                                       1,650                          1,650
LESS: Accumulated Depreciation and Amortization                   (57,582)                       (46,782)
                                                             -------------                  -------------
    TOTAL PROPERTY AND EQUIPMENT                                                   27,676                         36,977

OTHER ASSETS:
  Other Assets                                                      6,667                              6,667
  Escrow Deposits                                                 125,000
    TOTAL OTHER ASSETS                                                            131,667                          6,667
                                                                            --------------                 --------------

    TOTAL ASSETS                                                                7,301,020                     15,413,395
                                                                             =============                  =============


                                                 LIABILITIES

CURRENT LIABILITIES:
  Trade Accounts Payable                                           17,688                            761,608
  Trade Accounts Payable - Other                                  301,689                            362,189
  Accrued Expenses                                                127,329                            149,658
  Notes Payable                                                   148,923                             50,000
  Accrued Interest                                                 61,048                             52,938
  Factoring Arrangement                                           926,735                          2,383,956
  Income Taxes Payable                                          1,158,002                          1,079,947
                                                             -------------                      -------------

    TOTAL CURRENT LIABILITIES                                                   2,741,414                      4,840,296

DEFERRED INCOME TAXES                                                   -              -                       1,852,997
                                                                            --------------                 --------------

    TOTAL LIABILITIES                                                           2,741,414                      6,693,293

                              STOCKHOLDERS' EQUITY

  Common Stock, no par value, 50,000,000 shares authorized.    21,980,202                         21,980,202
    15,273,785 shares issued and 15,273,785
    shares outstanding.
  Paid In Capital                                                  51,795                             51,795
  Treasury Stock, 236,858 shares at cost                         (759,773)                          (759,773)
  Unrealized gain on investments held for sale.                (1,269,614)                         3,003,535
  Accumulated deficit                                         (15,443,004)                       (15,555,657)
                                                             -------------                      -------------

    TOTAL STOCKHOLDERS' EQUITY                                                  4,559,606                      8,720,102
                                                                            --------------                 --------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                             $  7,301,020                   $ 15,413,395
                                                                            ==============                 ==============
</TABLE>


       See the accompanying notes to these unaudited financial statements
                                        3
<PAGE>
<TABLE>
<CAPTION>
                                     AMERICAN NORTEL COMMUNICATIONS, INC.
                                      COMPARATIVE STATEMENT OF OPERATIONS
                      FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2001 AND 2000
                                                  (UNAUDITED)

                                                      FISCAL QUARTER  2001          FISCAL QUARTER 2000
                                                   THREE MONTHS    NINE MONTHS    THREE MONTHS    NINE MONTHS
<S>                                               <C>             <C>            <C>             <C>
INCOME
  Revenue                                         $   1,859,173   $  6,967,147   $   5,293,884   $ 18,098,778
COST OF SALES                                         1,314,758      5,648,327       4,303,524     13,645,400
                                                  --------------  -------------  --------------  -------------
GROSS PROFIT                                            544,414      1,318,820         990,359      4,453,378
  SELLING EXPENSES                                       11,294        159,716         211,975        771,104
  GENERAL & ADMINISTRATIVE                              363,313      1,006,367         270,739        935,411
                                                  --------------  -------------  --------------  -------------
    TOTAL EXPENSES                                      374,607      1,166,083         482,713      1,706,515
    EARNINGS (LOSS) FROM OPERATIONS                     169,808        152,738         507,646      2,746,864
OTHER INCOME (EXPENSE)
  Other Income                                                -              -       1,659,474      1,670,979
  Interest Income                                        15,907         50,636           2,891          7,168
  Interest Expense                                       (8,141)       (15,534)        (33,701)       (47,785)
                                                  --------------  -------------  --------------  -------------
    TOTAL OTHER INCOME                                    7,766         35,102       1,628,664      1,630,362
  NET INCOME BEFORE INCOME TAXES                        177,574        187,839       2,136,310      4,377,226
  Provisions for  Income Taxes Benefit (Expense)        (51,810)       (75,186)        (85,000)      (230,000)

NET INCOME (LOSS)                                 $     125,764   $    112,653   $   2,051,310   $  4,147,226
                                                  ==============  =============  ==============  =============
EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE BEFORE INCOME TAXES      $        0.01   $       0.01   $        0.13   $       0.27
                                                  --------------  -------------  --------------  -------------
WEIGHTED AVERAGE NUMBER OF COMMON                    15,273,785     15,273,785      15,403,785     15,403,785
                                                  --------------  -------------  --------------  -------------
   SHARES OUTSTANDING
BASIC EARNINGS PER SHARE                          $        0.01   $       0.01   $        0.13   $       0.27
                                                  --------------  -------------  --------------  -------------
WEIGHTED AVERAGE NUMBER OF COMMON                    15,273,785     15,273,785      15,403,785     15,403,785
                                                  --------------  -------------  --------------  -------------
   SHARES OUTSTANDING
DILUTED EARNINGS PER SHARE BEFORE INCOME TAXES    $        0.01   $       0.01   $        0.13   $       0.27
                                                  --------------  -------------  --------------  -------------
WEIGHTED AVERAGE NUMBER OF COMMON                    15,273,785     15,273,785      15,403,785     15,403,785
                                                  --------------  -------------  --------------  -------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING
DILUTED EARNINGS PER SHARE                        $        0.01   $       0.01   $        0.13   $       0.27
                                                  --------------  -------------  --------------  -------------
WEIGHTED AVERAGE NUMBER OF COMMON                    15,273,785     15,273,785      15,403,785     15,403,785
                                                  --------------  -------------  --------------  -------------
AND COMMON SHARE EQUIVALENTS OUTSTANDING
</TABLE>

       See the accompanying notes to these unaudited financial statements


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                      AMERICAN NORTEL COMMUNICATIONS, INC.
                                      COMPARATIVE STATEMENTS OF CASH FLOWS
                       FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2001 AND 2000
                                                  (UNAUDITED)

                                                         2001            2001           2000           2000
                                                     THREE MONTHS    NINE MONTHS    THREE MONTHS   NINE MONTHS
<S>                                                  <C>            <C>             <C>            <C>
  CASH FLOWS FROM OPERATING ACTIVITIES
    Net Income                                       $    125,764   $     112,653   $  2,051,310   $ 4,147,227
    ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
      PROVIDED BY OPERATING ACTIVITIES.
      Depreciation and amortization                         3,600          10,800          3,600        10,800
      Consultants paid with common stock                        -               -              -        27,000

    (Increase) decrease in assets
      Trade accounts receivable                           332,292       2,898,331        184,787      (436,824)
      Prepaid and other current assets                     26,534         (19,690)       (68,556)       92,024
      Deferred tax asset                                   19,641          (2,869)             -             -

    Increase (decrease) in liabilities
      Trade accounts payable                             (415,120)     (1,387,169)        (1,583)     (704,051)
      Accrued liabilities                                   8,141         (26,297)         2,397        62,643
      Income Taxes Payable                                 32,169          78,053         85,000       230,000
      Accrued expenses                                     12,109          14,359        (29,766)        4,501
                                                     -------------  --------------  -------------  ------------
          NET CASH PROVIDED IN OPERATING ACTIVITIES       145,130       1,678,171      2,227,187     3,433,318

  CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of marketable equity securities             (125,000)     (1,524,222)       534,825      (821,316)
    Advances to shareholder                                     -        (235,000)      (203,500)     (233,500)
    Sale of Common stock                                        -               -              -       (11,506)
    Notes Receivables                                     (35,000)        (35,000)             -             -
    Purchases of property and equipment                         -          (1,499)          (434)       (4,644)
                                                     -------------  --------------  -------------  ------------
          NET CASH USED BY INVESTING ACTIVITIES          (160,000)     (1,795,721)       330,891    (1,070,966)

  CASH FLOWS FROM FINANCING ACTIVITIES
    Principal repayments on notes payable                 (73,235)       (728,230)      (553,000)     (664,819)
                                                     -------------  --------------  -------------  ------------
          NET CASH USED BY FINANCING ACTIVITIES           (73,235)       (728,230)      (553,000)     (664,819)

        NET DECREASE IN CASH                              (88,105)       (845,780)     2,005,078     1,697,533

        CASH AT BEGINNING OF PERIOD                       647,327       1,405,002        410,306       717,851
                                                     -------------  --------------  -------------  ------------
            CASH AT END OF PERIOD                    $    559,222   $     559,222   $  2,415,384   $ 2,415,384
                                                     =============  ==============  =============  ============
</TABLE>

       See the accompanying notes to these unaudited financial statements


                                        5
<PAGE>
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
FOR  THE  THREE  MONTHS  AND NINE MONTHS ENDED MARCH 31, 2001 AND MARCH 31, 2000

1.  Basis  of  Presentation

The accompanying unaudited financial statements represent the financial position
of  American  Nortel  Communications,  Inc.  as of March 31, 2001, and March 31,
2000,  and include our results of operations and cash flows for the three months
and nine months period ended March 31, 2001 and2000.  These statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and the instructions for Form 10-QSB.  Accordingly, they
do  not include all the information and footnotes required by generally accepted
accounting  principles  ("GAAP")  for  complete  financial  statements.  In  the
opinion  of  management, all adjustments to these unaudited financial statements
necessary  for  a  fair  presentation  of  the  results  for  the interim period
presented  have been made.  The results for the three and nine month ended March
31,  2001  and  2000  may  not  necessarily be indicative of the results for the
entire  fiscal  year.  These  financial statements should be read in conjunction
with  our  Form  10-KSB for the year ended June 30, 2000, including specifically
the  financial  statements  and  notes  to  such  financial statements contained
therein.

2.  Summary  of  Significant  Accounting  Policies

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

Advertising  and  Marketing  Costs
----------------------------------

Advertising  production  costs,  except for costs associated with marketing, are
charged  to  operations  when  incurred.  Marketing  costs  are  related  to
direct-response  marketing and costs are capitalized as required by SOP 93-7 and
amortized.  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 eight to
twelve  months.


Cash  and  Cash  Equivalents
----------------------------

Cash  and  cash  equivalents  include all short-term liquid investments that are
readily  convertible  to  known  amounts of cash and have original maturities of
three  months  or  less.  At  times  cash deposits may exceed government insured
limits.

Concentration  of  Credit  Risk
-------------------------------

We  maintain  cash  balances  in  two  banks  in Phoenix, Arizona, which have an
average  balance  of  $250,000.  The  Federal  Depository  Insurance Corporation
(FDIC)  insures  accounts  at  each  institution  up  to  $100,000.  We maintain
investment  balances  with two brokerage firms. The Security Investor Protection
Corporation  (SPIC)  insures  accounts  at  these  firms  up  to  $500,000.


                                        6
<PAGE>
Income  Taxes
-------------

Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes
("SFAS  109"),  which, among other things, requires that recognition of deferred
income  taxes be measured by the provisions of enacted tax laws in effect at the
date  of  the  financial  statements.

Revenue  Recognition
--------------------

Our  revenues  are  derived  principally  from  long distance telephone service.
Revenue  is  recorded  when service is rendered. Service is rendered when a long
distance  telephone  call  is completed. Revenue is recorded net of an allowance
for  certain  amounts,  which  we  estimate,  will  be  refunded,  rebated,
uncollectable,  or  not  billable.  Net  billings  result  from gross submittals
reduced  by billing records rejected by the LEC's and adjusted for resubmittals.
Revenue  is reported gross of fees charged by the billing company and the LEC's.

Fair  Value  of  Financial  Instruments
---------------------------------------

The amounts for investments in marketable securities, trade accounts receivable,
trade accounts payable, accrued liabilities and notes payable, approximate their
fair  value  due  to the short maturity of these instruments. We have determined
that  the  recorded  amounts  approximate  fair  value.

Net  Income  Per  Share
-----------------------

Net  loss per share is calculated using the weighted average number of shares of
common  stock  outstanding  during  the  year. We have adopted the provisions of
Statement  of  Financial  Accounting  Standards  No.  128,  Earnings  Per Share.

Use  of  Estimates
------------------

The  preparation  of  financial statements in conformity with generally accepted
accounting  principles  requires  management  to make estimates and assumptions.
This may affect the reported amounts of assets and liabilities and disclosure of
assets and liabilities at the date of the financial statements, and the reported
amounts  of  revenues  and  expenses during the reporting period. Actual results
could  differ  from  those  estimates.

Stock-Based  Compensation
-------------------------

Statements of Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation  ("SFAS  123"),  established accounting and disclosure requirements
using  a  fair-value  based  method  of  accounting  for  stock-based  employee
compensation.  In  accordance  with  SFAS  123,  we  have  elected  to  continue
accounting  for  stock  based  compensation  using  the  intrinsic  value method
prescribed  by  Accounting  Principles  Board Opinion No. 25.  1,000,000 options
were  not  considered  in  the diluted earnings per share because exercise price
greater  than  market  price.

Recently  Issued  Accounting  Standards
---------------------------------------

In  June  1998,  the  Financial  Accounting Standards Board issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities, which is effective
for  fiscal  years  beginning  after June 15, 2000 (as amended).  This statement
establishes  accounting  and  reporting  standards  requiring  that  derivative
instruments  be  recorded  on  the balance sheet as either an asset or liability
measured  at  its  fair  value.  The statement also requires that changes in the
derivative's  fair  value  be  recognized  in  earnings  unless  specific  hedge
accounting  criteria  are  met.  The  Company  has  not completed evaluating the
impact  of  implementing  SFAS  No.  133.  However, it is not expected to have a
significant  impact  on  the  Company.


                                        7
<PAGE>
In December 1999, the Securities and Exchange Commission issued Staff Accounting
Bulletin  (SAB)  No.  101, Revenue Recognition in Financial Statements.  SAB No.
101  summarizes  the  staff's  views  in  applying generally accepted accounting
principles to revenue recognition in financial statements.  The Company believes
it  had  previously applied the concepts of  SAB 101 and the adoption of SAB No.
101  did  not  have  a  material  effect  on  the  Company's revenues or revenue
recognition  policy.

3.     COMPREHENSIVE  INCOME

Comprehensive  income/(loss)  includes only unrealized gains and losses from the
holdings  of  investments  in  marketable  securities.

<TABLE>
<CAPTION>
                                                              Nine months   Nine months
                                                                 Ended         ended
                                                               March 31,     March 31,
                                                                 2001           2000
<S>                                                          <C>            <C>
NET (LOSS) INCOME                                            $    112,653   $ 4,147,226

OTHER COMPREHENSIVE INCOME:

Unrealized gain (loss) from available-for-sale investments     (1,269,613)            0
    (net of income tax benefit of $221,139 and $----------)
                                                             -------------  -----------
     Total other comprehensive income                          (1,269,613)            0
                                                             -------------  -----------

COMPREHENSIVE (LOSS) INCOME                                  $ (1,269,613)  $         0
                                                             =============  ===========
</TABLE>


                                        8
<PAGE>
ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
             RESULTS  OF  OPERATIONS

     Except  for  historical  information  contained  herein,  the  following
discussion  contains  forward-looking  statements  that  involve  risks  and
uncertainties.  Such forward-looking statements include, but are not limited to,
statements  regarding  future  events and our plans and expectations. Our actual
results  could differ materially from those discussed herein. Factors that could
cause  or  contribute to such differences include, but are not limited to, those
discussed  below  in  this  Form  10-QSB  under  the  heading  "Special  Note on
Forward-Looking  Statements.

THE  COMPANY

     American  Nortel  Communications, Inc. ("ANC", "we" or "our" refers to "the
Company")  is  a Wyoming corporation founded in 1979 and is a reseller of 1-Plus
and  1-800,  888  long-distance telecommunications services.  ANC resells to its
customers  long  distance  telephone time that it purchases or leases from other
long  distance  carriers.

     In  September  1994, the Company and its subsidiary, Nortel Communications,
Inc.,  filed  petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S.
Bankruptcy Court, District of Utah, Central Division (Case Numbers 948-24604 and
948-24605).  The  proceedings  were  later  converted  to  Chapter 7 liquidation
proceedings,  and  dismissed  on  February  7, 1996. The Company sold its Nortel
Communications subsidiary in June 1996 for nominal consideration to an affiliate
controlled  by  its  former  directors.  During  the  pendancy of the bankruptcy
proceedings,  in June 1995, a controlling stock interest in the company was sold
to Wilcom, Inc., which is currently our majority stockholder.  In February 1996,
the  bankruptcy proceedings were dismissed and the Company resumed business as a
seller  of  long  distance  communications  services.

OVERVIEW  OF  BUSINESS

     ANC  resells  long  distance  telephone  services  to  both  business  and
residential customers. As a reseller, ANC purchases or leases long distance time
from other long distance carriers and resells that time to its customers. ANC is
charged  for  the  time  it uses beyond certain minimum requirements and in turn
charges  its  customers  a  certain  amount per minute. To a large extent, ANC's
profits  are  dependent  upon the difference between its cost per minute and the
amount  it  charges  its  customers,  and its results of operations are directly
affected  by  competition,  which  in  recent  years has been intense. Increased
competition  has  lowered  the  amount  resellers  can  charge  customers.  ANC
out-sources  its  sales  and  marketing  to  telemarketers  and  it  pays  those
telemarketers compensation for each new customer obtained. We do not direct-bill
our  customers, but rather we utilize the Local Exchange Carriers (LEC's), which
provide  telephone  services to our long-distance customers, and perform billing
and  collections  for us. LEC's receive a fee based upon a certain percentage of
amounts  collected.  The  Company's  management  believes  that  the practice of
billing  through  LECs  has  a  substantial  advantage  because it increases the
likelihood  and  promptness  of  our  collections.

     We  have recently determined to change our strategy of reselling 1 plus 800
and  888  long  distance  telephone  services.  The  Company's  management  has
determined  that  the  profit  margins from long distance telephone service have
narrowed and are continuing to narrow to an unacceptable extent.  We believe the
long  ditance  service  market, as a whole, has experienced a decrease in profit
margins  due  to  the  aggressive pricing competition that has characterized the
industry  during the last several years.  LECs have also experienced competition
with  Competitive  Local  Exchange  Carriers  ("CLECs").  As  a  result  of this
increase  in competition, we have experienced a decrease in profits.  Because of
our  reduced  profitability,  we  have ceased marketing efforts in long distance
telephone  service  offerings  and  are  examining other business strategies and
opportunities,  which  could  add  to  our  profitability.


                                        9
<PAGE>
     Investment  in  Marketable  Securities.With excess cash from operations, We
     ---------------------------------------
have  made  investments  in other companies, particularly early stage companies.
These  issuers  may  have  limited  operating  histories  and  revenues.

     Investments  in  marketable  securities consisted of the following at March
31,  2001:

<TABLE>
<CAPTION>
                                Gross  Unrealized       Fair
                      Cost      Gains      Losses      Value
                   ----------  --------  ----------  ----------
<S>                <C>         <C>       <C>         <C>
Equity securities  $4,156,601  $150,055  $1,419,669  $2,886,987
</TABLE>

     We  have  also  invested  in  common  stock and related warrants of several
publicly  traded  companies.  At  March  31,  2001,  the  Company's  investment
portfolio  consisted of marketable securities of seven different companies.  The
investment  in one such company's securities represents approximately 41% of the
estimated aggregate fair value of the Company's investment portfolio as of March
31,  2001.

     At  March  31,  2001,  the  investment portfolio consisted of stocks of the
following  companies:

     Dauphin Technologies, Inc. ("DNTK").  DNTK designs manufactures and markets
mobile  hand-held,  pen based computers, as well as other electronic devises for
home  and  business  use.  DNTK's  primary  product  line is a handheld computer
developed  with the multi-sector mobile user in mind.  This product incorporates
an upgradeable processor, user upgradeable memory and hard disk, various modules
and  mobile  devices.

     Sonoma  Financial  Corporation/Victormaxx Technologies, Inc. ("VMAX"). VMAX
incorporates  financial service companies that operate a chain of stores devoted
to  providing  low documentation, short-term consumer loans.  VMAX is one of the
largest  payday  advance  operations  in  the  Chicago  area.

     American  Educational  Products,  Inc.  ("AMEP").  AMEP  manufactures  and
distributes  products  that  increase  teachers'  effectiveness in the classroom
facilitates  students'  learning  through  inquiry  and discovery, and encourage
parental  participation  in  their  child's  education.  AMEP  manufactures  and
distributes  educational  products  to  educational  institutions,  wholesalers,
individual  educators,  and  consumers.

     PTN  Media,  Inc.  ("PTNM").  PTNM is an interactive media content provider
focusing on providing branded content using a combination of new and traditional
media.  PTNM's  initial web site focuses on fashion, beauty, style, fitness, and
related  subjects.  PTNM  currently provides this content on its interactive web
site  www.fashionwindow.com.
      ---------------------

     Med Com USA, Inc. ("EMED"). EMED enables paperless electronic verifications
and  transactions, a web health care portal, and online purchase of home medical
equipment  through  its  operating  units.

     Cynet,  Inc.  ("CYNE"). CYNE is an Internet business applications solutions
provider  integrating  convergent  messaging  with  Internet  services.  CYNE's
products  and  services  include convergent messaging, which includes fax, data,
voice, email and wireless messaging, and Internet services, which include custom
application  development,  e-commerce  development,  web  content  creation, web
hosting  and  internet  access.


                                       10
<PAGE>
     Morgan  Cooper,  Inc.  ("MC").  MC  was  primarily  involved  in  designing
contemporary  style  clothing.  The  MC collections were designed to provide the
consumer  with  fresh  and  updated  looks by combining classic and contemporary
styling,  in both fabrics and leathers, with special attention to unique details
and  fit  to  appeal  to  their target market that desire high quality, designer
clothes  at  competitive prices.  ANC is in control the direction of MC and that
direction  is  being  analyzed.

     Although  the  Company  has  made  investments  in  several publicly traded
corporations,  the  Company  is actively seeking other business opportunities to
offset  the  reduced  profit  margins  in  its  long distance telephone reseller
business.

     At  the  quarter  ending  March31,  2001  the Company deposited $125,000 in
escrow  as the Company disputed the ownership, operation, and continued business
of  MC and it entered into a settlement agreement with MC, pursuant to which Mr.
And  Mrs.  Cooper would resign from the Board of Directors and as officers of MC
and  W.P.  Williams  will  be  appointed  as  MC's  Board  of Director and Chief
Executive  Officer.  The  Company  relied on the representations of Mr. and Mrs.
Cooper and disbursed $125,000 for the purchase of 6,400,000 shares of MC subject
to  its  due  diligence  and  completion  of the transaction.  Subsequently, the
agreements  closed  on  April  14,

RESULTS  OF  OPERATIONS

     Revenues  were  $1,859,173  and $6,967,147 for three and nine month periods
ended  March  31, 2001, respectively, compared to $5,293,884 and $18,098,778 for
three  and  nine month periods ended March 31, 2000, respectively.  The decrease
in revenue was principally the result of a decrease in revenues from our basic 1
Plus  and  800,  888  long  distance  telephone  service.  We have decreased our
marketing  efforts and have experienced attrition in our customer base.  We have
maintained our call volumes in the telecommunications industry. However, we have
experienced a continued increase in competition in the U.S. domestic market, and
continue  to  seek  business opportunities to alleviate the potential effects of
cost  competition  in  the  domestic telecommunication market.  Subsequently, we
have  acquired  MC  and  are  planning  to  place  an  operating company in MC's
operations.
 .
       Cost  of  sales  were  $1,314,758 and $5,648,327 for three and nine month
periods  ended  March 31, 2001, compared to $4,303,524 and $13,645,400 for three
and  nine month periods ended March 31, 2000. Our cost of sales has decreased in
relation  to  the  decrease  in  revenues, as our revenues have decreased due to
attrition  of  our  customer  base.  Our  cost  of  sales  has  decreased due to
decreased  costs from our long distance telephone service provider and all other
providers. Our cost of sales is comprised of long-distance fees to long distance
service  providers,  telemarketing  costs,  allowances  for  bad  debt,  cost of
factoring  arrangement,  and  billing  costs.  Billing  costs  include  fees for
services  provided  by  LECs and other outside parties, billing integrators that
transfer  and  organize  our customer acquisition, billing, and collection data.

     Selling expenses were $11,294 and $159,716 respectively, for three and nine
months  ended  March  31,  2001, compared to $211,975 and $771,104 for three and
nine  months  periods  ended March 31, 2000. Selling expenses were primarily the
costs  associated  with the cost of acquiring customers.  Our selling costs have
decrease  because  we have ceased all marketing for new long distance customers.
We  have  decreased  our  marketing  efforts as competition in the U.S. domestic
long-distance  markets  increased  in  order to redirect those revenues to other
business  opportunities.

     General  and  administrative  expenses were $363,313 and $1,006,367 for the
three  and  nine  months  periods  ended March 31, 2001 compared to $270,739 and
$935,411 for the three and nine months periods ended March 31, 2000. These costs
are  primarily  related  to customer service staffing and professional fees. The
increase  in  these costs is related to the increase in professional services in
researching  and  providing  financial  and  legal  due diligence to confirm the
soundness  of the new potential business activities that management has pursued.
The  costs  also  include  executive  compensation  and  employee benefit costs.


                                        11
<PAGE>
     Interest  income,  net  of  interest expense was $7,766 and $35,102 for the
three  and  nine  months  period ended March 31, 2001, respectively, compared to
interest  expenses, net of interest income, of $30,810 and $40,617 for the three
and nine months period ended March 31, 2000. Interest income and dividend income
have  increased  as  a  result  of  our  increase  in  investment  activities.

     Net  Income  was  $125,764 or $.01 per diluted share, and $112,653, or $.01
per diluted share, for the three and nine month periods ended March 31, 2001, as
compared  to  $2,051,310, or $.13 per diluted share, and $4,147,226, or $.27 per
diluted  share,  for  the  three  and  nine  month periods ended March 31, 2000.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Cash  provided  by  operating activities was $1,678,171 for the nine months
period  ended  March  31, 2001, compared to $3,433,318 for the nine month period
ended  March 31, 2000. We have funded our working capital requirements primarily
from  our  revenue generated from providing long distance telephone service as a
long  distance  reseller.  Cash  from  operating  activities  for the nine month
period  ended  March  31,  2001 was utilized to increase our prepaid expenses of
$19,690  and  accrued  expenses  of  $14,359  and  to  decrease  trade  accounts
receivables  of  $2,898,331,  trade accounts payables of $1,387,169, and accrued
liabilities  of  $26,297.  Cash  from  operating  activities  for the nine month
period  ended  March 31, 2000, increased trade accounts receivables of $436,824,
accrued  liabilities of $62,643, and accrued interest of $4,501 and by decreases
in  prepaid  expenses  of  $92,024  and  trade  accounts  payables  of $704,051.

     Cash used by investing activities was $1,795,721 for the nine months period
ended  March  31,  2001.  We  purchased  marketable  securities  of  $1,524,222,
purchased computer equipment of $1,499; advanced $235,000 to a controlled group,
and  lent to business affiliates $35,000.  Cash used by investing activities was
$1,070,996  for  the  nine months ended March 31, 2000.  We purchased marketable
securities  of  $821,316,  purchased  equipment of $4,644 and made advances to a
shareholder  of  $233,500.

     Cash  used  from  financing  activities  was  utilized  to repay our credit
facility with RFC Capital, Inc. in the form of notes payable of $728,230 for the
nine  months  period  ended March 31, 2001.  Cash used from financing activities
was  utilized to repay our credit facility with RFC Capital, Inc. in the form of
notes  payable  of  $664,819  for  the  nine months period ended March 31, 2000.

     Operating  Restrictions.  We  intend  to  conduct our business so as to not
     -----------------------
become  a  regulated investment company under the Investment Company Act of 1940
(the "1940 Act").  Accordingly, we do not expect to be subject to the provisions
of  the  1940  Act,  including  those  that  prohibit certain transactions among
affiliated parties.  The 1940 Act exempts issuers primarily engaged, directly or
indirectly,  through  a  wholly-owned  subsidiary or subsidiaries, in a business
other  than  that  of  investing,  reinvesting,  owning or holding or trading in
securities.  The  United  States  Securities and Exchange Commission ("SEC") may
also,  upon application by an issuer, find by order that the issuer is primarily
engaged  in the business or businesses other than investing, reinvesting, owning
or  holding  or  trading  in  securities.


                                        12
<PAGE>
     The  Company's  investments  in  securities  are currently 41% of its total
assets,  exclusive of government securities and cash items (on an unconsolidated
basis).  The  Company intends to seek and develop other lines of business, which
would  prevent  us from becoming subject to the 1940 Act and will, if necessary,
make  application  to  the SEC for an order of exemption.  If for any reason the
Company  was  to  become an investment company which is non-exempt from the 1940
Act  (for  example,  due  to  a change in our assets or a change in the value of
particular  assets), we would either have to restructure our assets so as not to
become  subject  to  the  1940  Act or would have to change the way in which the
Company  conducts  its  activities.  Either  of  these changes could require the
Company  to  sell  substantial  portions of its assets at a time when it may not
wish  to  do  so,  and  could incur significant losses as a result.  Further, to
avoid  becoming  subject to the requirements of the 1940 Act, the Company may be
required to forego investments, which we would like to make, or otherwise act in
a  manner  other  than  which  management  believes would maximize its earnings.
These  securities  are  held  for  investment  purposes  and we did not sell any
investments  for  the  quarter  ended  March  31,  2001.

OTHER  RISK  CONSIDERATIONS

     There  are  numerous  factors  that  affect  the Company's business and the
results of its operations. Sources of these factors include general economic and
business  conditions,  federal  and  state  regulation of the Company's business
activities,  the  level  of  demand for our services, the level and intensity of
competition  in  the  telecommunications industry and the pricing pressures that
may  result,  our  ability  to  develop  new  services  based on new or evolving
technology  and  the  market's  acceptance of those new services, our ability to
timely  and  effectively  manage  periodic  product  transitions,  the services,
customer  and  geographic  sales mix of any particular period, and the Company's
ability  to  continue  to  improve  our  infrastructure (including personnel and
systems)  to  keep  pace  with  the  growth  in its overall business activities.

     We  will  encounter  specific transitional risks as the Company attempts to
transition  from  being  a  long-distance  re-seller into other businesses.  The
businesses  the Company attempts to acquire may not be profitable or provide the
same  cash  flow as the long-distance re-seller business has provided.  Further,
the Company's management may not have the expertise to manage new businesses the
Company  acquires.

     Because  we  have  acquired  the  securities of various small publicly held
companies,  which have limited liquidity, we are subject to risks related to the
value  of  those  investments.  These  risks  include  the  volatility  of these
investments,  the  difficulty we may have in disposing of these investments, and
the risks that interest rates and other economic conditions may adversely affect
the  value  of  these investments.  At this time, we do not have an intention of
engaging  in  the business of investing, reinvesting, owning, holding or trading
in  securities  and  intend  to  be  engaged  primarily,  as  soon as reasonably
possible,  but  in any event in not less than one year, in a business other than
that  of  investing, reinvesting, owning, holding or trading in securities.  The
value  of  the  1940  Act  of  our  investment  securities presently exceeds the
limitation set forth in Section 3(a)(1)(C) of the 1940 Act required for us to be
classified  as  an  investment  company  under  the  1940  Act.

FORWARD-LOOKING  STATEMENTS

     Except  for  historical  information  contained  herein,  this  Form 10-QSB
contains  express  or  implied  forward-looking statements within the meaning of
Section  27A  of the Securities Act of 1933 and Section 21E of the Exchange Act.
We  intend  that  such forward-looking statements be subject to the safe harbors
created  thereby.  We  may  make written or oral forward-looking statements from
time  to  time  in filings with the SEC, in press releases, quarterly conference
calls  or  otherwise. The words "believes," "expects," "anticipates," "intends,"
"forecasts,"  "project,"  "plans,"  "estimates" and similar expressions identify
forward-looking  statements.  Such  statements  reflect  our  current views with
respect  to future events and financial performance or operations and speak only
as  of  the  date  the  statements  are  made.


                                        13
<PAGE>
     Forward-looking  statements involve risks and uncertainties and readers are
cautioned  not to place undue reliance on forward-looking statements. Our actual
results  may  differ  materially  from  such  statements.  Factors that cause or
contribute  to such differences include, but are not limited to, those discussed
elsewhere  in  this  Form  10-QSB, as well as those discussed in our Form 10-KSB
which  is  incorporated  by  reference  in  this  Form  10-QSB.

     Although  we  believe  that  the assumptions underlying the forward-looking
statements  are  reasonable,  any of the assumptions could prove inaccurate and,
therefore,  there  can  be  no  assurance  that the results contemplated in such
forward-looking  statements  will  be  realized.  The  inclusion  of  such
forward-looking information should not be regarded, as a representation that the
future  events,  plans,  or  expectations  contemplated  will  be  achieved.  We
undertake  no  obligation  to  publicly  update,  review,  or  revise  any
forward-looking  statements  to  reflect  any  change in our expectations or any
change  in  events,  conditions,  or  circumstances on which any such statements
based.  Our  filings with the SEC, including the Form 10-KSB, may be accessed at
the  SEC's  Web  site,  www.sec.gov.
                        ------------


                                       14
<PAGE>
                           PART II - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

     ANC  is  involved  in various legal proceedings and claims described in our
Form  10-KSB for the year ended June 30, 2000. No material developments occurred
in  any  of these proceedings during the quarter ended March 31, 2001. The costs
and  results  associated  with  these legal proceedings could be significant and
could  affect  the  results  of  our  future  operations.


                                       15
<PAGE>
ADDITIONAL  INFORMATION

     ANC  files  reports  and  other  materials with the Securities and Exchange
Commission.  These  documents  may  be  inspected and copied at the Commission's
Public  Reference  Room at 450 Fifth Street, N.W., Washington, D.C., 20549.  You
can  obtain information on the operation of the Public Reference Room by calling
the Commission at 1-800-SEC-0330.  You can also get copies of documents that the
Company  files  with  the  Commission  through the Commission's Internet site at
www.sec.gov.
------------

     ITEM  6:  EXHIBITS  AND  REPORTS  ON  FORM  8-K

EXHIBITS:
None

REPORTS  ON  FORM  8-K:

     No  reports  on  Form  8-K were filed in the fiscal quarter ended March 31,
2001.



                                   SIGNATURES

In  accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant  caused  this  report  to be signed on its behalf by the undersigned,
thereunto  duly  authorized.

                      AMERICAN NORTEL COMMUNICATIONS, INC.



                         By     /s/ William P. Williams
                           ----------------------------
    William P. Williams, Chairman of the Board, Chief Executive Officer, and
                                    President

                              Dated: May 11, 2001


                                       16
<PAGE>