American Telco Inc. was formed in 1983 as a long-distance provider servicing small and medium-sized businesses in Houston, Austin, Dallas and San Antonio. Following the 1996 Telecom Act, American moved into the local voice market through an interconnection agreement with southwestern Bell; the company was the first provider to resell SBC’s services in the Houston area. The same year, American Telco became the first facilities-based CLEC in Texas. By the end of 1998, American Telco had 23,000 customers, most of them in Texas.
In 1998, American Telco was acquired by Dobson Communications Corp., which was doing business as LOGIX Communications Enterprises, Inc. (which itself was formerly known as Dobson Wireline Company), for $131.5 million. LOGIX, in turn, was spun off from Dobson on January 24, 2000 to become its own independent company. With nearly $400 million in debt, in 2002 LOGIX Communications Enterprises, Inc. filed for bankruptcy protection. Ron Henriksen, the founder of American Telco, acquired select American Telco assets from LOGIX in 2002 for $24.2 million and then combined those assets with his 2000 creation American Lightwave Communications. The combination, which includes legacy American Telco assets, now operates under the name LOGIX Communications, LP.