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 18, 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 18, 2006,  we issued a press release  announcing  the launch of our
DECT cordless  phone that includes an integrated  answering  machine  accessible
from each  handset.  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 18, 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 18, 2006


                                              AMERICAN TELECOM SERVICES, INC.



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

EX-99

                                                                    Exhibit 99.1


         American Telecom Launches DECT Cordless Phone with Integrated
                 Answering Machine Accessible from Each Handset
    Multi-handset Design Changes the Way that Households Check Their Messages

Contact:          Bruce Hahn, CEO
                  American Telecom Services, Inc.
                  (404) 261-7466
                  Bruce.Hahn@atsphone.com

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

Media Contact:    Danielle Ross
                  Comunicano
                  (858) 314-2958
                  dross@comunicano.com

City of Industry,  California -July 18,  2006--American  Telecom Services,  Inc.
(ATS) (AMEX:  TES), a provider of both Digital Clear  Internet  Phone (VoIP) and
Pay N' Talk pre-paid long distance  communication services that are bundled with
digital cordless multi-handset phones,  announced today the release of its first
DECT  6.0  Pay N'  Talk  phone  that  includes  an  integrated,  next-generation
answering machine with access from every handset.

This new ATS design allows users to check their messages from any handset in the
expandable  system,  instead of restricting them to checking  messages only from
the base as is common on other,  similar  devices.  The release of the new phone
represents a significant  advancement in maximizing  functionality  and consumer
ease-of-use  within a multi-handset  system,  providing them with a service that
emulates network-driven voice mail, without the monthly service cost.

Priced  at less  than $40 for the  master  base  (Model  RA21804B),  ATS also is
introducing a companion  expansion handset (Model RA21814B) that will retail for
under $20.  The phones will be sold in multiple  retail  package  configurations
ranging from stand-alone  masters and extensions to combination sets of a master
base with up to four additional handsets. Each handset includes the money saving
green button for  accessing the  company's  patent-pending,  Pay N' Talk prepaid
long distance platform.

Pay N' Talk service offers  consumers the opportunity to save on their regional,
domestic and  international  long distance service through seamless access using
the money saving green button.  Using the money saving green  button,  consumers
can activate their Pay N' Talk account, make calls and manage their account. All
domestic calls are 3.9 cents per minute with no additional charges and all taxes
included.     Competitive     international    rates    may    be    found    at
http://atsphone.com/payntalk/rates.html.

The RA218 highlighted features include:

General Features

     -    Message retrieval from handsets
     -    Money Saving Green Button to access prepaid long distance
     -    DECT 6.0
     -    Range Over 900 ft.
     -    Expandable up to 4 Handsets
     -    Handset Page/Locator
     -    Intercom Between Handsets
     -    Last 10-Number Redial
     -    40 Number Speed-Dial Phonebook
     -    20 Number Caller ID Log
     -    Caller ID Call Waiting Ready
     -    Handset Speakerphone
     -    12 Distinctive Ring Tones
     -    Multi-language support
     -    4 line display
     -    Message waiting indicator on base and handsets
     -    Records up to 24 incoming messages
     -    2 Different Outgoing Messages
     -    Selectable answer delay (2-9 rings)
     -    Remote-Control Access

Editors Note:  Product  specifications and images of these products may be found
at:

RA21804B: http://atsphone.com/payntalk/RA218/RA2180BB.html
RA21814B: http://atsphone.com/payntalk/RA218/RA2181BB.html


About American Telecom Services, Inc.

American      Telecom      Services,      Inc.     offers     Internet     phone
(Voice-over-Internet-Protocol) and prepaid long distance communications services
that are bundled with the  Company's  digital,  cordless  multi-handset  phones.
American Telecom sells its  phone/service  bundles through major retailers under
its "American  Telecom",  "ATS",  "Pay N' Talk" and "Digital Clear" brand names.
The Company's  strategic  partners include  SunRocket,  Inc., a provider of VoIP
services, for the Company's Internet phone service offering, and IDT Corporation
for the Company's prepaid long distance service offering.

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.