Excel Communications was founded in 1988 by Dallas entrepreneur Kenny Troutt as a long distance reseller in the US telecom sector at the birth of telecom deregulation.

In the beginning, as the 432nd-largest long distance company in the United States, it began selling franchises through the business model of network marketing or multi-level marketing (MLM). In seven years, it became the fourth-largest long distance carrier in America and the youngest billion-dollar-annual company in history (8 years as compared to the second fastest growing, Microsoft, which took 15 years).

In 1996, Excel became the youngest company ever to join the New York Stock Exchange (NYSE). In 1998, Excel merged with Teleglobe.

Kenny Troutt retired as CEO in 1999, to be replaced by Christina Gold.

By 2002, Excel had entered the local phone service market more aggressively than smaller competitors such as MCI's Neighborhood. However, the gross margins associated with long-distance telephone service dropped precipitously during the period from 1998 through 2003 due to the entry of numerous competitors and additional line capacity into this sector. As such, the profitability of Excel and almost every other teleccommunications firm dependent upon long-distance calling customer dropped precipitously.

On November 1, 2004, VarTec Communications (the parent corporation of Excel) unexpectedly filed for Chapter 11 bankruptcy protection in the North Texas judicial sector. in thic connection, Excel had sought to be released from its contracts with its independent representatives. At this point, it looks like Excel, if it survives, will cease to be a multi-level marketing company.