Date of Report (Date of Earliest Event Reported) March 26, 2008 
ATSI Communications, Inc.
(Exact Name of Registrant as Specified in Its Charter)

(State or Other Jurisdiction of Incorporation
(Commission File Number)
(I.R.S. Employer Identification No.)
3201 Cherry Ridge,
Building C, Suite 300
San Antonio, Texas
(Address of Principal Executive Offices)
(Zip Code)
(210) 614-7240
(Registrant’s Telephone Number, Including Area Code) 
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:

o Written communications pursuant to Rule 425 under the Securities Act.

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act



ITEM 1.01.
Entry into a Material Definitive Agreement.
On March 26, 2008, ATSI Communications, Inc. (the "Registrant") amended its Account Transfer Agreement with Wells Fargo Business Credit (“WFBC”), a division of Wells Fargo Bank, N.A. to increase the maximum amount that may be outstanding at any time from $3,000,000 to $5,000,000. Under the terms of the amended Agreement, the Registrant may offer to sell with recourse not less than $350,000 nor more than $5,000,000 in its accounts receivable to WFBC each month until December 6, 2008, up to a maximum amount outstanding at any time of $5,000,000. The Registrant is not obligated to offer accounts in any month and WFBC has the option to decline to purchase any accounts.

WFBC will pay Registrant the face amount of each domestic account sold less a fee of 0.0349% of the face amount for each day after the sale until the account is collected in full. WFBC will pay Registrant the face amount of each foreign account sold less a fee 1.02% of the face amount for the 1st day outstanding and an additional 0.0349% of the face amount of such account for each additional day period that an account remains unpaid thereafter.

If any account is not collected within 90 days after sale or WFBC determines that the account debtor is not financially able to pay the account, the Registrant is required to repurchase such account from WFBC for the face amount thereof. Performance of the agreement is secured by a security interest in all of the Registrants accounts receivable and certain officers of the Registrant have provided a limited guaranty for the benefit of WFBC in the event of a breach of representations by the Registrant with respect to any account sold or the improper receipt and retention of payments under any account by any person.

The agreement may be terminated by the Registrant or WFBC upon 30 days written notice before December 6, 2008 and renews automatically for an additional one-year term if not terminated by either party. The Registrant is required to pay a fee in the amount of 0.3% of the Maximum Credit Facility ($5,000,000), or $15,000, if the agreement is terminated by WFBC for default or is terminated by the Registrant.

ITEM 2.03.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On March 26, 2008, the Registrant amended the Account Transfer Agreement with Wells Fargo described under Item 1.01 of this report. As of the date of this report, the Registrant has sold approximately $850,000 of accounts receivables to WFBC.

ITEM 9.01.
Financial Statements and Exhibits.

The following documents are filed as exhibits to this Report

Exhibit No.
Amendment to Account Transfer Agreement dated March 26, 2008 between ATSI Communications and Wells Fargo Business Credit Division of Well Fargo Bank, National Association.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ATSI Communications, Inc.
Dated: April 11, 2008
  By:   /s/ Antonio Estrada
Antonio Estrada
Sr. VP of Finance &
Corporate Controller