Wow...

Two things

1) Never use Cursors! Looping through a temp table takes less overhead than a Cursor; especially when you are working on a 24/7/365 server where you really need to watch your resources.

2) Don't write code like this:

IF @ListThisNumber = 0

SET @PhoneNumber = '***********'

SET @AllPhones = @AllPhones + @PhoneNumber + ' & '

Doing it this way uses one less variable that you have to Declare and Set:

SELECT @AllPhones = @AllPhones +

CASE

WHEN @ListThisNumber = 0 THEN '***********'

ELSE @PhoneNumber

END + ' & '