ATSI Communications, Inc. ("ATSI") operates through its two wholly owned subsidiaries, Digerati Networks, Inc. and Telefamilia Communications, Inc. ATSI also owns a minority interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de C.V., which operates under a 30-year government issued telecommunications license similar to the license owned by AT&T's subsidiary in Mexico.
Digerati Networks, Inc. provides international communications services that consist primarily of transporting voice traffic across the world via the Internet. Digerati owns and operates its own Voice over Internet protocol ("VoIP") network in San Antonio, Texas for processing voice communication traffic between the United States and rapidly expanding markets in Asia, Europe, the Middle East, and Latin America. Digerati has established numerous partnerships with foreign carriers and network operators to provide its international services.
Telefamilia is a licensed Competitive Local Exchange Carrier (CLEC) in Texas. Its CLEC status allows the Company to purchase local phone service from the incumbent, AT&T, at a discount. Telefamilia resells the local phone service to Latino consumers and subscribes the local phone number to its VoIP platform. The consumer simply dials a local or toll-free number to access Telefamilia's VoIP network, then proceeds to make an international call at savings ranging from 20% - 50%. Telefamilia can also subscribe the customer's mobile phone service to its VoIP platform.