8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 8-K


                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported): July 11, 2006



                         American Telecom Services, Inc.
             (Exact name of Registrant as specified in its charter)


        Delaware                       1-32736                   77-0602480
(State of incorporation)        (Commission File No.)           (IRS Employer
                                                             Identification No.)

                                 2466 Peck Road
                       City of Industry, California 90601
                    (Address of principal executive offices)


                  Registrant's telephone number: (562) 908-1287


     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

     |_| Written  communications  pursuant to Rule 425 under the  Securities Act
(17 CFR 230.425)

     |_| Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_|  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
Exchange Act (17 CFR 240.14d-2(b))

     |_|  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
Exchange Act (17 CFR 240.13e-4(c))





Item 8.01. Other Events.

     On July 11, 2006, we issued a press release announcing our launch of Pay N'
Talk  phones at a major  national  retail  drugstore  chain with more than 6,000
store locations.  A copy of the press release is being furnished as Exhibit 99.1
to this report and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(a)  Financial Statements of Businesses Acquired - None

(b)  Pro Forma Financial Information - None

(c)  Shell Company Transactions - None

(d)  Exhibits:


Exhibit No.       Description
- -----------       -----------
   99.1           Press release issued by us on July 11, 2006















                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Dated: July 11, 2006


                                        AMERICAN TELECOM SERVICES, INC.



                                        By:  /s/Lawrence Burstein
                                             -----------------------------
                                             Name:  Lawrence Burstein
                                             Title:    Chairman

EX-99

                                                                    Exhibit 99.1


               American Telecom Services Launches Pay N' Talk(TM)
                    at Major National Retail Drugstore Chain

        -New Phones to be offered at more than 6,000 drugstore locations-

Contact:          Bruce Hahn, CEO
                  (310) 871-9904
                  (404) 261-7466
                  brucehahn@atsphone.com

Investor Contact: Matt Hayden, President
                  Hayden Communications
                  (858) 704-5065
                  matt@haydenir.com


                              FOR IMMEDIATE RELEASE


City of Industry,  California,  July 11, 2006 - American  Telecom  Services Inc.
(AMEX: TES), a provider of Digital Clear Internet phone ("VoIP") and Pay N' Talk
prepaid  long   distance   communications   service   bundled   with   cordless,
multi-handset  phones,  announced that a major national  retailer will carry the
ATS Pay N' Talk cordless  multi  handset  phone,  bundled with free  promotional
minutes from ATS' powered by IDT, in more than 6,000 drugstore locations and the
retailer's Internet store.

American Telecom Services' proprietary prepaid residential long distance service
offerings,  under its Pay N' Talk brand, are powered by IDT Corporation,  one of
the largest  prepaid  long  distance  providers  in the nation.  The Pay N' Talk
program offers potential annual savings of up to 60% to the average household on
residential long distance  service,  when compared to rates offered by incumbent
long distance telephone service providers.

About American Telecom Services

American Telecom Services, a leading provider of traditional and internet phones
bundled with service  offerings,  currently offers Digital Clear broadband phone
bundles powered by SunRocket (voice-over-Internet-Protocol or "VoIP") and Pay N'
Talk prepaid residential long distance  communications  services powered by IDT.
These  services are bundled with ATS' diverse line of custom  designed  digital,
cordless multi-handset phones. ATS sells its phone/service bundles through major
retailers under the "American Telecom",  "ATS" "Pay N' Talk" and "Digital Clear"
brand names.

Safe Harbor Statement

Any  statements  in this  press  release  that  are  not  historical  facts  are
forward-looking  statements  within the meaning of Section 21E of the Securities
Exchange  Act of  1934,  as  amended.  In some  cases,  you can  identify  those
forward-looking  statements by words such as "may," "will," "should," "expects,"
"plans," "anticipates,"  "believes,"  "estimates,"  "predicts,"  "potential," or





"continue" or the negative of those words and some other comparable words. These
forward-looking  statements  are subject to risks and  uncertainties  that could
cause actual results to differ  materially from historical  results or those the
Company  anticipates.  Factors  that could cause  actual  results to differ from
those contained in the  forward-looking  statement include,  but are not limited
to, those risks and  uncertainties  described in the Company's  prospectus dated
February 1, 2006 and the other reports and documents the Company files from time
to time with the Securities and Exchange Commission. Statements included in this
press release are based upon information  known to the Company as of the date of
this press  release,  and the Company  assumes no obligation  to (and  expressly
disclaims any such obligation to) publicly  update or alter its  forward-looking
statements made in this press release,  whether as a result of new  information,
future events or otherwise,  except as otherwise  required by applicable federal
securities laws.