Excel Communications
Corporate brand
UnclaimedExcel Communications was a United States telecommunications company that used a multilevel-marketing model to sell long-distance services.
Last updated August 25, 2026
AI crawler reads
No AI crawler has read this profile yet.
Overview
Excel Communications was a telecommunications company founded in the United States in 1988 by Dallas entrepreneur Kenny Troutt and Steve Smith. It began as a reseller of long-distance telephone service during the early period of telecommunications deregulation. Rather than initially owning a nationwide network, the company purchased or resold capacity from established carriers and marketed long-distance plans through a large network of independent representatives. Steve Smith had previously studied network marketing and believed that its compensation and distribution structure could be adapted to services as well as physical goods. Excel applied that model to telecommunications: independent representatives recruited customers and, in some cases, additional representatives, receiving commissions tied to service activity. This approach gave the company a broad sales organization without relying exclusively on conventional retail distribution or a traditional carrier sales force. Excel expanded rapidly during the 1990s and became one of the largest long-distance carriers in the United States. Its growth reflected several conditions in the market, including the breakup and deregulation of the traditional telephone monopoly, falling barriers to resale, and strong consumer demand for alternatives to incumbent long-distance providers. The company became publicly traded on the New York Stock Exchange in 1996 under the symbol ECI and was described as the youngest company to join the exchange at that time. In 1997, it acquired Telco Communications Group, strengthening its position in the long-distance sector and reducing its dependence on external network arrangements. In 1998, Excel merged with Teleglobe, creating a broader communications enterprise. Kenny Troutt retired as chief executive in September 1999 and was succeeded by Christina Gold. The combined business was subsequently taken over by Bell Canada, the principal shareholder of Teleglobe. Bell Canada reorganized Excel as a subsidiary and later separated it into the privately held VarTec Communications group, subject to approval by the Federal Trade Commission. VarTec continued operating Excel's network-marketing business for a period, but financial pressure eventually forced the parent company into Chapter 11 bankruptcy protection on November 1, 2004. During the bankruptcy process, Excel sought to terminate its contractual obligations to independent representatives while retaining revenue from its existing customer base. The change allowed the operating business to continue generating cash and altered Excel's original distribution model, but it was criticized by representatives and their association because commissions had been central to the sales system and to customer-retention incentives. The Federal Communications Commission approved the transfer of relevant licenses to Comtel Telecom Assets in September 2005. The business emerged from bankruptcy on June 12, 2006, under new ownership and with a slightly revised operating name, Excel Telecom. In March 2010, Matrix Business Technologies announced that it would acquire the customer base and substantially all assets of Comtel Telecom Assets. Excel therefore represents a largely historical telecommunications brand whose major phases included long-distance resale, multilevel marketing, public-market expansion, consolidation with Teleglobe, bankruptcy restructuring, and eventual asset transfer.
History
Excel Communications emerged in 1988 during the formative period of United States telecommunications deregulation. Kenny Troutt and Steve Smith established the company as a long-distance reseller, initially relying on other carriers' networks rather than operating an entirely self-owned infrastructure. The company therefore entered the market with a comparatively asset-light model while competing for customers in a sector being reshaped by regulatory change and the decline of incumbent monopoly conditions. Smith brought an interest in network marketing to the business. He believed that the recruitment, sales, and compensation practices associated with that model could be applied to a service business. Excel consequently developed a distribution system built around independent representatives who marketed long-distance plans and could earn commissions from service-related activity. This approach became one of the company's defining characteristics and helped it expand beyond a conventional direct-sales organization. During the 1990s, Excel grew into a significant United States long-distance carrier. Its expansion included a 1997 acquisition of Telco Communications Group. Before that transaction, Excel had depended on other companies, including Frontier Communications, to provide network access for the services it resold. The acquisition was part of its effort to strengthen its position in the communications market. In May 1996, Excel became publicly traded on the New York Stock Exchange under the symbol ECI. Contemporary descriptions characterized it as the youngest company to receive an NYSE listing at that point. Excel merged with Teleglobe in November 1998. The combination changed the company's corporate context and was followed by further ownership and governance changes. Troutt retired as chief executive on September 20, 1999, after which Christina Gold became chief executive. Bell Canada, Teleglobe's major shareholder, subsequently took over the combined enterprise. Bell Canada reorganized Excel as a subsidiary and later spun it into the privately held VarTec Communications group, with the transition requiring Federal Trade Commission approval. VarTec maintained Excel's network-marketing approach for a time. The parent company's Chapter 11 filing on November 1, 2004, however, placed the business under substantial restructuring pressure. Excel sought relief from its contracts with independent representatives. This allowed the company to continue collecting revenue from customers already using its services without maintaining the same ongoing commission commitments. The move changed the economics and identity of the business: it preserved an operating customer base but removed the principal mechanism through which representatives had generated sales and loyalty. The representative association viewed the decision as short-term in its orientation and damaging to the former distribution network. In September 2005, the FCC approved the transfer of relevant licenses to Comtel Telecom Assets, LLP. The business exited bankruptcy on June 12, 2006, under new ownership and adopted the name Excel Telecom, reflecting a revised continuation of the brand. The surviving operation did not fully restore the original multilevel-marketing structure. In March 2010, Matrix Business Technologies announced that it would acquire the customers and substantially all assets of Comtel Telecom Assets. This transaction marked the final major transition identified in the available account of Excel's corporate history. The original Excel Communications brand is consequently best understood as a historical telecommunications enterprise whose lifecycle ran from long-distance resale and network marketing through public listing, merger, ownership changes, bankruptcy, and asset disposition.
- 2010
Comtel customer and asset acquisition announced
[1]Matrix Business Technologies announced the planned acquisition of Comtel's customers and substantially all of its assets.
- 2006
Business emerges as Excel Telecom
[1]The company emerged from bankruptcy on June 12, 2006, under new ownership and a revised name.
- 2005
License transfer receives FCC approval
[1]The FCC approved the transfer of licenses to Comtel Telecom Assets, LLP.
- 2004
Parent company enters Chapter 11
[1]VarTec Communications filed for Chapter 11 bankruptcy protection on November 1, 2004.
- 1999
Chief executive transition
[1]Kenny Troutt retired as chief executive on September 20, 1999, and Christina Gold replaced him.
- 1998
Teleglobe merger
[1]Excel merged with Teleglobe in November 1998.
- 1997
Telco Communications Group acquisition
[1]Excel acquired Telco Communications Group as part of its expansion in long-distance services.
- 1996
New York Stock Exchange listing
[1]Excel began trading on the NYSE under the symbol ECI on May 10, 1996.
- 1988
Excel Communications is founded
[1]Kenny Troutt and Steve Smith founded Excel as a United States long-distance reseller during the early phase of telecommunications deregulation.
Products and positioning
A growth-oriented alternative long-distance carrier that combined telecommunications resale with a multilevel-marketing distribution system. Excel positioned its services as a scalable communications offering supported by independent representatives rather than solely by conventional carrier retail channels.
Telecommunications · 1988
Excel long-distance service
Excel's core offering was long-distance telephone service for residential and business customers in the United States. In its early years the company operated primarily as a reseller, obtaining access through other carriers' networks. The service was marketed through Excel's independent-representative organization, making the distribution model as important to the product's commercial identity as the underlying calling service.
Sales and distribution · 1988
Independent-representative distribution program
Excel used a multilevel-marketing structure to distribute telecommunications services. Independent representatives promoted service plans and were compensated through arrangements connected to customer activity and representative recruitment. The model supported rapid customer acquisition but also created continuing obligations and dependencies between the company, its representatives, and the installed customer base.
Brand decisions
2006
Continue operations under the Excel Telecom nameStrategyBackground
The operating business emerged from bankruptcy after licenses had been transferred to Comtel Telecom Assets.
Action taken
Under new ownership, the company adopted the slightly revised name Excel Telecom and continued with a modified version of its previous business.
Aftermath
The revised operation ultimately became part of the customer and asset transaction announced by Matrix Business Technologies in 2010.
2004
Terminate independent-representative contracts during restructuringStrategyBackground
After VarTec Communications filed for Chapter 11 protection, Excel faced pressure to preserve operating cash while restructuring its obligations.
Action taken
Excel sought to be released from contracts with independent representatives while continuing to receive revenue from its existing customer base.
Aftermath
The company continued operating but ceased to function as a multilevel-marketing company. Representative groups criticized the move because commissions had been central to sales and customer loyalty.
1998
Merge with TeleglobeM&ABackground
Excel pursued broader communications scale after growing as a long-distance reseller and carrier.
Action taken
Excel merged with Teleglobe in November 1998.
Aftermath
The combined business was later taken over by Bell Canada, Teleglobe's major shareholder.
1997
Acquire Telco Communications GroupM&ABackground
Excel had been reselling long-distance service through other companies' networks, including Frontier Communications. Acquiring Telco Communications Group supported its expansion in the long-distance market.
Action taken
Excel acquired Telco Communications Group.
Aftermath
The acquisition became part of Excel's broader expansion before its merger with Teleglobe the following year.
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/excel-communications · Editorial policy · How profiles are compiled