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

                     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 December 31, 2000

[ ]   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
January  31,  2001  was  15,273,785  shares  of  common  stock, par value $.001.

     Transitional  Small  Business  Disclosure  Format  (check  one):

Yes         No   X
    ---         ---

================================================================================
<PAGE>

                      AMERICAN NORTEL COMMUNICATIONS, INC.
                           INDEX TO FORM 10-QSB FILING
                     FOR THE QUARTER ENDED DECEMBER 31, 2000

                              TABLE  OF  CONTENTS

                                    PART  I
                            FINANCIAL  INFORMATION                          PAGE

Item 1.  Financial  Statements
            Balance  Sheets
               December 31, 2000 (unaudited) and June 30, 2000               ..2
            Statements  of  Operations
               For the Three Months and Six Months Ended December 31, 2000
               (unaudited) and 1999 (unaudited)                                3
            Statements  of  Cash  Flows
               For the Three Months and Six  Months Ended December 31, 2000
               (unaudited) and 1999 (unaudited)                                4
            Notes to the Consolidated Financial Statements                     5

Item 2.  Management's Discussion and Analysis of Financial Condition and
            Results of   Operations                                            7


                                     PART II
                                OTHER INFORMATION

Item  1.  Legal  Proceedings                                                  13
Item  6.  Exhibits  and  Reports  on  Form  8-K                               14


                                   SIGNATURES


                                        1
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

<TABLE>
<CAPTION>
                            AMERICAN NORTEL COMMUNICATIONS, INC.
                                  COMPARATIVE BALANCE SHEET
                          AS OF DECEMBER 31, 2000 AND JUNE 30, 2000
                                         (UNAUDITED)

                                            ASSETS

                                                         DECEMBER 31, 2000  JUNE 30, 2000

<S>                                                          <C>            <C>
CURRENT ASSETS:
  Cash and Cash Equivalents                                  $    647,327   $  1,405,002
  Trade Accounts Receivable                                     3,168,789      5,734,828
  Investments in marketable securities                          3,338,067      7,947,051
  Prepaid Expenses                                                189,353        143,129
  Notes Receivable                                                265,909         80,509
  Deferred Income Taxes                                            81,742         59,232
                                                             -------------  -------------

    TOTAL CURRENT ASSETS                                        7,691,187     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                   (53,982)       (46,782)
                                                             -------------  -------------
    TOTAL PROPERTY AND EQUIPMENT                                   31,276         36,977

OTHER ASSETS:
  Other Assets                                                      6,667          6,667
    TOTAL OTHER ASSETS                                              6,667          6,667
                                                             -------------  -------------

    TOTAL ASSETS                                                7,729,130     15,413,395
                                                             =============  =============


                                         LIABILITIES

CURRENT LIABILITIES:
  Trade Accounts Payable                                          395,308        761,608
  Trade Accounts Payable - Other                                  339,189        362,189
  Accrued Expenses                                                115,220        149,658
  Notes Payable                                                   146,642         50,000
  Accrued Interest                                                 55,188         52,938
  Factoring Arrangement                                           999,970      2,383,956
  Income Taxes Payable                                          1,125,833      1,079,947
                                                             -------------  -------------

    TOTAL CURRENT LIABILITIES                                   3,177,350      4,840,296

DEFERRED INCOME TAXES                                             438,045      1,852,997
                                                             -------------  -------------

    TOTAL LIABILITIES                                           3,615,395      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.                (1,589,720)     3,003,535
  Accumulated deficit                                         (15,568,768)   (15,555,657)
                                                             -------------  -------------

    TOTAL STOCKHOLDERS' EQUITY                                  4,113,735      8,720,102
                                                             -------------  -------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $  7,729,130   $ 15,413,395
                                                             =============  =============
</TABLE>


       See the accompanying notes to these unaudited financial statements


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                    AMERICAN NORTEL COMMUNICATIONS, INC.
                                     COMPARATIVE STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
                                                 (UNAUDITED)

                                                       FISCAL QUARTER  2000        FISCAL QUARTER 2000
                                                   THREE MONTHS    SIX MONTHS    THREE MONTHS    SIX MONTHS
<S>                                               <C>             <C>           <C>             <C>
INCOME
  Revenue                                         $   1,899,488   $ 5,098,524   $   6,021,529   $12,784,933


COST OF SALES                                         1,745,763     4,333,569       4,746,570     9,341,876

                                                  --------------  ------------  --------------  ------------
GROSS PROFIT                                            153,724       764,955       1,274,959     3,443,057

  SELLING EXPENSES                                       53,281       196,570         222,912       559,129

  GENERAL & ADMINISTRATIVE                              310,254       594,909         266,118       619,465
                                                  --------------  ------------  --------------  ------------
    TOTAL EXPENSES                                      363,535       791,479         489,029     1,178,595

    EARNINGS (LOSS) FROM OPERATIONS                    (209,811)      (26,523)        785,930     2,264,463

OTHER INCOME (EXPENSE)
  Other Income                                              972         9,451               -        19,962
  Interest Income                                        14,262        34,729           2,207         4,278
  Interest Expense                                       (3,645)       (7,393)        (23,870)      (47,785)
                                                  --------------  ------------  --------------  ------------
    TOTAL OTHER INCOME                                   11,589        36,786         (21,664)      (23,546)

  NET INCOME BEFORE INCOME TAXES                       (198,222)       10,263         764,266     2,240,917

  Provisions for  Income Taxes Benefit (Expense)         65,830       (23,374)        (65,000)     (145,000)


    NET INCOME (LOSS)                             $    (132,392)  $   (13,111)  $     699,266   $ 2,095,917
                                                  ==============  ============  ==============  ============

EARNINGS PER SHARE:
BASIC EARNINGS PER SHARE BEFORE INCOME TAXES      $       (0.01)  $     (0.00)  $        0.05   $      0.15
                                                  --------------  ------------  --------------  ------------

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)  $     (0.00)  $        0.05   $      0.14
                                                  --------------  ------------  --------------  ------------

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)  $     (0.00)  $        0.05   $      0.15
                                                  --------------  ------------  --------------  ------------

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)  $     (0.00)  $        0.05   $      0.14
                                                  --------------  ------------  --------------  ------------

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


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                             AMERICAN NORTEL COMMUNICATIONS, INC.
                                             COMPARATIVE STATEMENTS OF CASH FLOWS
                             FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
                                                         (UNAUDITED)


                                                                              2000           2000           1999          1999
                                                                         THREE MONTHS     SIX MONTHS   THREE MONTHS   SIX MONTHS
<S>                                                                      <C>           <C>             <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income                                                             $  (132,392)  $     (13,111)  $   699,266   $ 2,095,917
  ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING
    ACTIVITIES.
    Depreciation and amortization                                              3,600           7,200         3,600         7,200
    Consultants paid with common stock                                             -               -             -        27,000
    Sale of Common Stock                                                                                   (11,506)      (11,506)

  (Increase) decrease in assets
    Trade accounts receivable                                              1,255,333       2,566,039        94,271      (620,743)
    Prepaid and other current assets                                          23,181         (46,224)       20,851       160,580
    Deferred tax asset                                                        (8,541)        (22,510)                          -

  Increase (decrease) in liabilities
    Trade accounts payable                                                  (649,896)       (972,049)      (55,153)     (702,468)
    Accrued liabilities                                                        9,162         (34,438)        4,005        60,246
    Income Taxes Payable                                                     (57,289)         45,884        65,000       145,000
    Accrued interest                                                           1,125           2,249        34,267        34,267
                                                                         ------------  --------------  ------------  ------------
        NET CASH PROVIDED IN OPERATING ACTIVITIES                            444,283       1,533,040       854,602     1,195,493

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of marketable equity securities                                  (699,222)     (1,399,222)   (1,216,141)   (1,356,141)
  Advances to shareholder                                                   (235,000)       (235,000)                    (30,000)
  Purchases of property and equipment                                         (1,499)         (1,499)       (5,078)       (5,078)
                                                                         ------------  --------------  ------------  ------------
        NET CASH USED BY INVESTING ACTIVITIES                               (935,721)     (1,635,721)   (1,221,219)   (1,391,219)

CASH FLOWS FROM FINANCING ACTIVITIES
  Principal repayments on notes payable                                       49,600        (654,995)   (45,000.00)     (511,000)
  Draw down on short term loan                                                     -               -       399,181       399,181
                                                                         ------------  --------------  ------------  ------------
        NET CASH USED BY FINANCING ACTIVITIES                                 49,600        (654,995)      354,181      (111,819)

      NET DECREASE IN CASH                                                  (441,838)       (757,676)      (12,936)     (307,545)

      CASH AT BEGINNING OF PERIOD                                          1,089,163       1,405,002       423,242       717,851
                                                                         ------------  --------------  ------------  ------------
          CASH AT END OF PERIOD                                          $   647,325   $     647,326   $   410,306   $   410,306
                                                                         ============  ==============  ============  ============
</TABLE>


       See the accompanying notes to these unaudited financial statements


                                        4
<PAGE>
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
FOR  THE  THREE  MONTHS  AND SIX MONTHS ENDED DECEMBER 31, 2000 AND DECEMBER 31,
1999

1.  Basis  of  Presentation

The accompanying unaudited financial statements represent the financial position
of  American  Nortel  Communications, Inc. as of December 31, 2000, and December
31, 1999, includes our results of operations and cash flows for the three months
and  six  months  ended  December 31, 2000 and 1999.  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 six month ended
December  31, 2000 and 1999 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

Our  accounting  policies,  and  the  methods  of applying those policies, which
affect  the  determination  of  its financial position, results of operations or
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.  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.


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.


                                        5
<PAGE>
Income  Taxes
-------------

Statement  of  Financial  Accounting  Standards  No.  109, Accounting for Income
Taxes,  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 service. Revenue is
recorded  when  service  is  rendered,  which  is  when  a long distance call is
completed,  and  is  recorded  net  of an allowance for certain amounts which we
estimate  will  be  refunded,  rebated,  uncollectable,  or  not  billable.

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

The  carrying  amounts  for  cash,  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.


                                        6
<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"  or  incorporated  herein  by  reference.

THE  COMPANY

     American  Nortel  Communications,  Inc.  ("ANC")  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  it's  customers  long  distance
telephone  time  that  it purchases or leases from other long distance carriers.

     In  September  1994,  American  Nortel  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. American
Nortel  sold  its  Nortel  Communications  subsidiary  in  June 1996 for nominal
consideration  to  an  affiliate  of former directors. During the penance 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 ANC 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 it purchases or leases long distance time
from  other  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 spread 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 and 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  amount collected. 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  long  distance strategy of
reselling  1 plus 800 and 888 long distance services.  Management has determined
that  the profit margins from long distance service, which have been achieved in
the  past, have narrowed and are continuing to narrow to an unacceptable extent.
We  believe  the long distance market, as a whole, has experienced a decrease in
profit  margins  due  to  the  very  aggressive  pricing  competition  that  has
characterized  the  industry  during  the  last  several  years.  LECs have also
experienced  competition with the Competitive Local Exchange Carriers ("CLECs").
As  a  result  of  this  increase competition, we have experienced a dilution in
profits.  Because of our reduced profitability, we have ceased marketing efforts
in long distance service offerings and are examining the potential to enter into
other  business,  which  could  add to our profitability.  Potential businesses,
which  might  provide  profitability  to  us,  are  presently  being examined by
management.


                                        7
<PAGE>
     Investment in Marketable Securities.   With excess cash from operations, we
     --------------------------------------
have made  investments in other companies, particularly early stage companies in
need of working  capital.  These  issuers  may  have limited operating histories
and revenues.

     Investments in marketable securities consisted of the following at December
31, 2000:

                                 Gross Unrealized      Fair
                      Cost      Gains      Losses      Value
                   ----------  --------  ----------  ----------
Equity securities  $4,156,601  $575,817  $1,394,353  $3,338,065


     We  have  invested in common stock and related warrants of several publicly
traded companies.  At December 31, 2000, our investment in marketable securities
is  made  in  seven  different  companies.  The investment in one such company's
securities represents approximately 43% of the estimated aggregate fair value of
all  investments  in  marketable  securities  at  December  31,  2000.

     At  December  31,  2000,  we  held  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  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  initial  web-site  focus  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 includes
custom  application  development,  e-commerce development, web content creation,
web  hosting  and  internet  access.

     Morgan  Cooper,  Inc.  ("MCII").  MCII  is  primarily  involved  in  design
contemporary  style  clothing.  The  Morgan  Cooper  collections are 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 who desire high quality,
designer  clothes  at  competitive  prices.


                                        8
<PAGE>
     Although  we have made investments in several publicly traded corporations,
we  are  seeking  an active business to offset the reduced profit margins in its
long  distance  reseller  business.  We  have yet to identify that business, but
have  undertaken  efforts  to  do so in order to offset the effects of declining
profitability  in  the  long  distance  reseller  business.

     On  November  9, 2000 ANC purchased 400,000 common shares of Morgan Cooper,
Inc.  ("MCII") at $1.62 per share. The Morgan Cooper collections are 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 who desire high quality,
designer clothes at competitive prices.   The average of the bid and asked price
of  the  stock  as  of  December  31,  2000,  was  $1.06  per share according to
over-the-counter  market.

     On  December  26, 2000 ANC purchased 106,400 common stock at $.63 per share
of  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. The average of the bid and asked price of
the  stock  as  of  December  31,  2000,  was  $.59  per  share  according  to
over-the-counter  market.

     On  December  28, 2000 ANC purchased 175,000 common stock at $.15 per share
of  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 includes
custom  application  development,  e-commerce development, web content creation,
web  hosting and internet access.  The average of the bid and asked price of the
stock  as of December 31, 2000, was $.16 per share according to over-the-counter
market.

RESULTS  OF  OPERATIONS

     Revenues  were  $1,899,488  and  $5,098,524  for three and six months ended
December  31,  2000, respectively, as compared to $6,021,529 and $12,784,933 for
three  and  six  months  ended December 31, 1999, respectively.  The decrease in
revenue  is  principally the result of decrease of our basic 1 Plus and 800, 888
long  distance  service.  We  have  decreased  our  marketing  efforts  and have
experienced attrition in our customer base.  We have maintained our call volumes
in  the  telecommunication's  industry  and maintained our revenues. However, we
have experienced continued increases in competition in the U.S. domestic market,
and continue to seek business acquisition opportunities to potentially alleviate
the  effects  of  cost  competition  in  the  domestic telecommunication market.

     Cost of sales were $1,745,763 and $4,333,569 for three and six months ended
December  31,  2000  as  compared to $4,746,570 and $9,341,876 for three and six
months  December  31,  1999.  Our cost of sales has decreased in relation to the
decrease  in revenues, as our revenues have decrease based upon the attrition of
our  customer  base  so  have our cost of sales decreased due to decreased costs
from  our  long  distance  service provider and all other providers. Our Cost of
sales  is  comprised  of  long-distance  fees  we pay providers of long-distance
service  that  we  resell, telemarketing costs, allowances for bad debt, cost of
factoring  arrangement,  and  our  billing costs. Billing costs include fees for
services  provided  by  LECs  and other outside parties, billing integrators, to
transfer  and  organize  our customer acquisition, billing, and collection data.

     Selling  expenses  were  $53,281 and 196,570 for three and six months ended
December  31, 2000 as compared to $222,912 and $559,129 for three and six months
ended  December  31,  1999. Selling expenses were primarily the costs associated


                                        9
<PAGE>
with  the  cost of acquiring customers.  Our selling costs have decrease because
we  have  decreased  and  actually  ceased  all  marketing  of 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  and  investment  opportunities.

     General  and  administrative  expenses were $310,254 and $594,909 for three
and  six  months ended December 31, 2000 as compared to $266,118 and 619,465 for
three  and six months ended December 31, 1999. These costs are primarily related
to  customer service staffing and professional fees.  We believe that we provide
better  service to our customers. The increase in these costs are related to the
increase  in  professional  services  in researching and providing financial and
legal  due  diligences  to  confirm  the soundness of the new potential business
activities  investments  that  management  has  pursued.  The costs also include
executive  compensation  and  benefit  costs.

     Interest  income net of interest expense were $11,589 and $36,786 for three
and  six  months ended December 31, 2000 as compared to interest expenses net of
interest  income  of $21,664 and $23,546 for three and six months ended December
31,  1999. Interest income and dividend income have increased as a result of our
investment  activities.

     Net loss was ($132,392) or ($.01) per diluted share and ($13,111) or ($.00)
per diluted share  for  three and six months ended December 31, 2000 as compared
to $699,266  or  $.05 per diluted share and $2,095,917 or $.15 per diluted share
for three  and  six  months  ended  December  31,  1999.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Cash  provided  by  operating activities were $1,533,039 for the six months
ended  December  31,  2000  as  compared  to $1,195,493 for the six months ended
December  31,  1999.  We  have funded our working capital requirements primarily
from  our  principal  source  of  revenue generated from providing long distance
service as a long distance reseller.  Cash from operating activities for the six
months  ended  December  31,  2000  was  utilized  by an increase in our prepaid
expenses  of  $46,224  and  accrued expenses of $2,249 and by decreases in trade
accounts  receivables  of  $2,566,039,  trade accounts payables of $972,049, and
accrued  liabilities  of  $34,438.  Cash  from  operating activities for the six
months  ended  December  31, 1999, was utilized by an increase in trade accounts
receivables of $620,743, accrued liabilities of $60,246, and accrued interest of
$34,267  and  by  decreases  in  prepaid expenses of $160,580 and trade accounts
payables  of  $702,468.

     Cash used by investing activities was  $1,635,721  for the six months ended
December  31,  2000. We purchased marketable securities of $1,399,222, purchased
computer  equipment  $1,499  and  advanced to a controlled group $235,000.  Cash
used  by  investing  activities was $1,391,219 for the six months ended December
31, 1999.  We purchased marketable securities of $1,356,141, purchased equipment
of  $5,078  and  made  advances  to  a  shareholder  of  $30,000.

     Cash used from financing activities was utilized to repay notes payables of
$654,995  for  the six months ended December 31, 2000.  Cash used from financing
activities  was  utilized  to repay notes payables of $511,000 and draw down our
credit  facility  with  RFC  Capital  Inc.  of  $399,181 in the six months ended
December  31,  1999.

     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


                                       10
<PAGE>
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.

     Our  investments  in  securities  are  currently  43% of its  otal  assets,
exclusive  of government securities and cash items (on an unconsolidated basis).
We intend to seed and develop other lines  of  business,  which would prevent us
from becoming subject to the 1940 act and will,  if  necessary, make application
of the SEC for an order of exemption.  If for any  reason  we  were 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
wither  have  to  restructure our assets so as not to become subject to the 1940
Act  or  would  have  to  change  materially the way it conducts its activities.
Either  of  these  changes  could require us 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, we 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  our  earnings.

OTHER  CONSIDERATIONS

     There  are numerous factors that affect our business and the results of its
operations.  Sources  of  these  factors  include  general economic and business
conditions,  federal  and state regulation of our 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  our  ability  to continue to improve our
infrastructure (including personnel and systems) to keep pace with the growth in
its  overall  business  activities.

     Because we have acquired the securities  of  various  small  publicly  held
companies,  which have limited liquidity, and 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  intends  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  our  investments  in  securities presently exceeds the limitation set
forth  in  Section  3(a)(1)(C) required for us to be classified as an investment
company  under  the  1940  Act.

SPECIAL  NOTE  ON  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.

     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


                                       11
<PAGE>
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.
                        ------------


                                       12
<PAGE>
                           PART II - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

     ANC is involved in various legal proceedings and claims as 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 December 31, 2000. The
costs  and  results associated with these legal proceedings could be significant
and  could  affect  the  results  of  our  future  operations.


                                       13
<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 was filed in the fiscal quarter ended December 31,
2000,  as  follows:



                                   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:  ________________, 2000


                                       14
<PAGE>