The Dallas Business Journal is reporting that Comm South Companies, one of the nations largest pre-paid dial tone providers, has filed for chapter 11 bankruptcy protection.

Comm South's attorneys are quoted as saying the company has "between $1 and $10 million in assets and between $50 and $100 million in liabilities."

According to Comm South, the company had provisioned more than 1 million telephone lines as of January, 2003. Service to existing customers is not expected to be interrupted.

Comm South was one of the first local service providers to offer pre-paid dial tone to the millions of consumers cut off by the big bells. The service is provided through a network of agents in 40 states including hundreds of Rent to Own locations. Agents work on a commission basis.

According to sources, business boomed for Comm South until poor customer service and a seemingly endless list of competitors chipped away at the companies market share. Other pre-paid dial tone providers that utilize Rent to Own companies as agents are Dpi Teleconnect, Cat Communications, and Delta Phones.