EXHIBIT 99.1
JULIE PARSLEY                   [GRAPHIC OMITTED]
COMMISSIONER

PAUL HUDSON                                                   RECEIVED
CHAIRMAN                                                  04 OCT-4 PM 12:01
                                                       PUBLIC UTILITY COMMISSION
BARRY T. SMITHERMAN                                          FILING CLERK
COMMISSIONER

W. LANE LANFORD
EXECUTIVE DIRECTOR
                       PUBLIC UTILITY COMMISSION OF TEXAS
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     TO:  Alejandro Hinojosa, Jr.
          Hinotel
          2759 West Business 83
          Harlingen, TX. 78552

          Telecommunications Division
          Legal and Enforcement Division

     RE:  DOCKET NO. 30130 - APPLICATION OF HINOTEL FOR AN AMENDMENT TO ITS
          SERVICE PROVIDER CERTIFICATE OF OPERATING AUTHORITY

                               NOTICE OF APPROVAL
                               ------------------

          This  Notice approves the application of Hinotel (the Applicant) filed
     on August 27, 2004, for an amendment to its service provider certificate of
     operating  authority  (SPCOA)  No.  60359(1)  to  reflect  a  change  in
     ownership/control  as  well as a name change to Telefamilia Communications,
     Inc.  The  docket  was processed in accordance with applicable statutes and
     Commission  rules.  The  Commission  provided  notice of the application to
     interested  parties.  More than 15 days have passed since the completion of
     notice.  No  protests,  motions  to intervene, or requests for hearing were
     filed.  The Applicant and the Commission Staff (Staff) are the only parties
     to  the  proceeding.  Staff  recommended  approval  of the application. The
     application  is  approved.


---------------

     1  Granted  in  Application  of  Hinotel,  Inc.  for  a  Service  Provider
Certificate  of Operating Authority, Docket No 22330 (May 18, 2000); and amended
in  Application  of Hinotel for an Amendment to its Service Provider Certificate
of  Operating  Authority,  Docket  No.  23331  (Jan.  22,  2001).

O PRINTED ON RECYCLED PAPER                        AN EQUAL OPPORTUNITY EMPLOYER

    1701 N. CONGRESS AVENUE PO BOX 13326 AUSTIN, TX 78711 512/936-7000 FAX:
                   512/936-7003 WEB SITE: WWW.PUC.STATE.TX.US


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DOCKET NO. 30130                 NOTICE OF APPROVAL                  PAGE 2 OF 6


STATUTORY FINDINGS
------------------
     1.   Telefamilia  Communications,  Inc.  is  a  Texas corporation formed on
          April  22,  2004.


     2.   Telefamilia  Communications,  Inc.'s  parent  company  is  ATSI
          Communications, Inc., a Nevada corporation formed on May 24, 2004.


     3.   Telefamilia  Communications,  Inc.  has  no affiliates that are public
          utilities  or  that  are  providing  telecommunications  services.


     4.   The  Applicant  does  not currently have authority to provide local or
          long distance telecommunications services in any other state. However,
          a  now bankrupt subsidiary of the owner of Telefamilia Communications,
          Inc.,  known  as  American  Telesource  International  Inc.,  held
          authorization  to  provide  long  distance  services  in the following
          states:  California,  Colorado,  Delaware, Florida, Kansas, Louisiana,
          Maryland,  Massachusetts,  Missouri,  New  Hampshire,  New Jersey, New
          York,  North  Carolina,  Rhode Island, South Carolina, Texas, Vermont,
          and  West  Virginia.


     5.   All  operator services certifications as shown above were revoked with
          the  bankruptcy of American Telesource International Inc. in May 2003.


     6.   American  Telesource  International,  Inc. provided interexchange long
          distance  service  in Texas, and operator services in the states shown
          above.


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DOCKET NO. 30130                 NOTICE OF APPROVAL                  PAGE 3 OF 6

     7.   The  Applicant  requests  to  amend  its  SPCOA to reflect a change in
          ownership  control  and  a  name change to Telefamilia Communications,
          Inc.  (proposed  services).


     8.   The  application  complies  with  PURA (2)  Sec.  54.154(b).


     9.   The  Applicant is not precluded by PURA Sec.Sec. 54.201 or 54.152 from
          providing  service  under  an  SPCOA.


     10.  The  Applicant  is  entitled  to  approval of this application, having
          demonstrated the financial and technical qualifications to provide the
          proposed services, and the ability to provide the necessary quality of
          service  to  its customers, as required by PURA Sec.Sec. 54.154(b) and
          54.155(b).


COMPLAINT HISTORY
-----------------
     11.  The  Office  of  the  Texas  Attorney  General  reported no complaints
          registered  against  the  Applicant.


     12.  A  check  of  the  Commission's Customer Protection Division complaint
          database  revealed  no  complaints registered against the Applicant or
          Telefamilia  Communications.


     13.  A  check  of  the  Commission's  Enforcement & Investigations database
          revealed  no outstanding notices of violation against the Applicant or
          Telefamilia  Communications.


     14.  The  Applicant  committed in its responses to the Commission's Service
          Quality  Questionnaire  to  continue  to  meet  the quality of service
          standards.


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DOCKET NO. 30130                 NOTICE OF APPROVAL                  PAGE 4 OF 6


ORDERING PARAGRAPHS
-------------------
     1.   The  application  of  Hinotel to amend its facilities-based, data, and
          resale  telecommunications  service  provider certificate of operating
          authority (SPCOA) is approved.(3) Hinotel's SPCOA No. 60359 is amended
          to  reflect  a  change  in  ownership/control  and  a  name  change to
          Telefamilia  Communications,  Inc.


     2.   The  Applicant  shall  be  bound  by  requirements of P.U.C. SUBST. R.
          26.111.  Service  under this certificate shall be provided exclusively
          in the name under which the certificate was granted by the Commission.


     3.   The  Applicant  shall  file  any  future  changes  in address, contact
          representative,  and/or telephone numbers in an annual report with the
          Commission by June 30th of each year using the form Annual Information
          Reporting Requirements for a Service Provider Certificate of Operating
          Authority  and/or  a  Certificate  of  Operating Authority, Docket No.
          27357.  If  the  SPCOA  holder  has  any change during the year in the
          information  requested  in Section One of the annual report form, then
          the SPCOA holder shall file an updated form correcting the information
          in  Section  One  within  30  days  of  the  change.


     4.   The  Applicant  shall  provide  a  copy  of its application and/or the
          Commission's  Notice  of  Approval,  in accordance with the individual
          entity's  requirements,  to all affected Commission on State Emergency
          Communications  (9-1-1)  entities  prior to providing service to those
          entities.

--------------------------------------------------------------------------------

     2 The Public Utility Regulatory Act, TEX. UTIL. CODE ANN. Sec.Sec. 11.001 -
64.158  (Vernon  2000  &  Supp.  2005)  (PURA).

     3  Administrative  approval  of  this  uncontested  application  has  no
precedential  value  in  a  future  proceeding.


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DOCKET NO. 30130                 NOTICE OF APPROVAL                  PAGE 5 OF 6

     5.   The  Applicant's  provision  of  local telephone service to end-users,
          whether  by  its  own facilities, flat-rate resale, or usage sensitive
          loop, must also include "9-1-1" emergency telephone service at a level
          required  by  the applicable regional plan followed by local telephone
          service  providers  under Chapters 771 and 772 of the Texas Health and
          Safety  Code,  TEX. HEALTH & SAFETY CODE ANN. Sec.Sec. 771.001 et seq.
          (Vernon  2003)  (the Code) or other applicable law, and any applicable
          rules and regulations implementing those chapters. The Applicant shall
          diligently work with the Commission on State Emergency Communications,
          local  "9-1-1" entities, and any other agencies or entities authorized
          by  Chapters  771  and  772  of  the  Code  to ensure that all "9-1-1"
          emergency  services, whether provided through the certificate holder's
          own  facilities,  flat-rate  resale,  or  usage  sensitive  loop,  are
          provided  in  a  manner  consistent  with the applicable regional plan
          followed  by  local  telephone service providers under Chapters 771 or
          772  of  the Code or other applicable law and any applicable rules and
          regulations  implementing  those  chapters.  The  Applicant  shall
          diligently  work  with  the "9-1-1" entities to pursue, in good faith,
          the mutually agreed goal that the local "9-1-1" entities and emergency
          service  providers  experience  no  increase in their current level of
          rates  and,  to  the  extent  technically  feasible, no degradation in
          services  as  a  result  of  the  certification granted herein and the
          involvement  of  the  certificate  holder  in the provision of "9-1-1"
          emergency  service.


     6.   The  Applicant shall notify all affected 9-1-1 administrative entities
          at  least  30  days  prior  to activating or using a new NXX in a rate
          center  or  upon the commencement of providing local telephone service
          in  any  rate center in compliance with P.U.C. SUBST. R. 26.433(d)(3).


     7.   The  Applicant  shall  execute  a separate service agreement with each
          9-1-1 entity and remit the required 9-1-1 emergency service fee to the
          9-1-1  entity  pursuant  to  such  agreement in compliance with P.U.C.
          SUBST.  R.  26.435(e)(4).


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DOCKET NO. 30130                 NOTICE OF APPROVAL                  PAGE 6 OF 6

     8.   The  Applicant has committed to and is bound by the quality of service
          requirements  set  forth  in the Quality of Service Questionnaire. The
          underlying  incumbent  local exchange companies (ILECs) continue to be
          bound  by  the  quality  of  service  requirements contained in P.U.C.
          SUBST. R. 26.51. Approval of the SPCOA application does not expand the
          scope  of  the  underlying  ILEC's  obligation  to  its own customers.


     9.   All other motions, requests for entry of specific findings of fact and
          conclusions  of  law,  and  any other requests for general or specific
          relief, if not expressly granted herein, are hereby denied.


          SIGNED AT AUSTIN, TEXAS THE 4TH DAY OF OCTOBER 2004.
                                      ---

                                  PUBLIC UTILITY COMMISSION OF TEXAS


                                    /S/ IRENE MONTELONGO
                                  ----------------------------------------------
                                  IRENE MONTELONGO
                                  ADMINISTRATIVE LAW JUDGE
                                  POLICY DEVELOPMENT DIVISION


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