UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549



FORM N-CSR



Investment Company Act file number
        811-03883




DWS Communications Fund, Inc.

(Exact Name of Registrant as Specified in Charter)



One South Street

Baltimore, MD  21202

(Address of principal executive offices)             (Zip code)



Registrants Telephone Number, including Area Code:(212) 454-7190



Paul Schubert

345 Park Avenue

New York, NY 10154

(Name and Address of Agent for Service)



Date of fiscal year end:
        12/31




Date of reporting period:
        12/31/07






ITEM 1.REPORT TO STOCKHOLDERS





DECEMBER 31, 2007

# Annual Report
to Shareholders

DWS Communications Fund

|cf_C\cover260
|-------------

Contents

click herePerformance Summary

click hereInformation About Your Fund's Expenses

click herePortfolio Management Review

click herePortfolio Summary

click hereInvestment Portfolio

click hereFinancial Statements

click hereFinancial Highlights

click hereNotes to Financial Statements

click hereReport of Independent Registered Public Accounting Firm

click hereTax Information

click hereInvestment Management Agreement Approval

click hereSummary of Management Fee Evaluation by Independent
Fee Consultant

click hereDirectors and Officers

click hereAccount Management Resources

This report must be preceded or accompanied by a prospectus. To obtain a
prospectus for any of our funds, refer to the Account Management Resources
information provided in the back of this booklet. We advise you to consider the
fund's objectives, risks, charges and expenses carefully before investing. The
prospectus contains this and other important information about the fund. Please
read the prospectus carefully before you invest.

Investments in mutual funds involve risk. Some funds have more risk than others.
The fund focuses its investments on certain industrial sectors, thereby increasing its
vulnerability to any single industry or regulatory development. This fund is
nondiversified and can take larger positions in fewer companies, increasing its overall
potential risk. Investments in foreign securities markets are subject to additional
risks including currency fluctuations, greater price volatility and less liquidity than
US markets. All of these factors may result in greater share price volatility. Please see
the fund's prospectus for specific details regarding its investments and risk profile.

DWS Scudder is part of Deutsche Asset Management, which is the marketing name in
the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance SummaryDecember 31, 2007

All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, and does not guarantee future results. Investment
return and principal value fluctuate with changing market conditions so that,
when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the performance quoted.
Please visit www.dws-scudder.com for the Fund's most recent month-end
performance.

The maximum sales charge for Class A shares is 5.75%. For Class B shares, the
maximum contingent deferred sales charge (CDSC) is 4% within the first year
after purchase, declining to 0% after six years. Class C shares have no front-end
sales charge but redemptions within one year of purchase may be subject to a
CDSC of 1%. Unadjusted returns do not reflect sales charges and would have
been lower if they had. Institutional Class shares are not subject to sales charges.

The total annual fund operating expense ratios, gross of any fee waivers or
expense reimbursements, as stated in the fee table of the prospectus dated
May 1, 2007 are 1.53%, 2.69%, 2.43% and 1.14% for Class A, Class B, Class C and
Institutional Class shares, respectively. Please see the Information About Your
Fund's Expenses, the Financial Highlights and Notes to the Financial Statements
(Note C, Related Parties) sections of this report for gross and net expense related
disclosure for the period ended December 31, 2007.

To discourage short-term trading, the Fund imposes a 2% redemption fee on
shareholders redeeming shares held less than 15 days, which has the effect of
lowering total return.

Returns and rankings during all periods shown for Class A, B and C shares and the
3-year and 5-year periods for Institutional Class shares reflect a fee waiver and/or
expense reimbursement. Without this waiver/reimbursement, returns and rankings
would have been lower.

Performance figures do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. Returns and rankings may differ
by share class.

Returns shown for Class C prior to its inception on October 28, 1998 are derived from
the historical performance of Class A shares of the DWS Communications Fund during
such periods and have been adjusted to reflect the higher gross total annual operating
expenses of each specific class. Any difference in expenses will affect performance.

|Average Annual Total Returns(Unadjusted for Sales Charge) as of 12/31/07
|------------------------------------------------------------------------
|DWS Communications Fund                                                 
|Class A                                                                 
|Class B                                                                 
|Class C                                                                 
|S&P 500® Index+                                                         
|DWS Communications Fund                                                 
|Institutional Class                                                     
|S&P 500 Index+                                                          

Sources: Lipper Inc. and Deutsche Investment Management Americas Inc.

|Net Asset Value Information
|---------------------------
|                           
|Net Asset Value:
12/31/07  
|12/31/06                   

|Class A Lipper Rankings  Telecommunication Funds Categoryas of 12/31/07
|------------------------------------------------------------------------
|Period                                                                  
|1-Year                                                                  
|3-Year                                                                  
|5-Year                                                                  
|10-Year                                                                 

Source: Lipper Inc. Rankings are historical and do not guarantee future results.Rankings are based on total returns unadjusted for sales charges with distributions
reinvested. If sales charges had been included, rankings might have been less
favorable. Rankings are for Class A shares; other share classes may vary.

|Growth of an Assumed $10,000 Investment(Adjusted for Maximum Sales Charge)
|--------------------------------------------------------------------------
|[]DWS Communications Fund  Class A
[]S&P 500 Index+                      
|cf_g10k210                                                                
|Yearly periods ended December 31                                          

The Fund's growth of an assumed $10,000 investment is adjusted for the maximum
sales charge of 5.75%. This results in a net initial investment of $9,425.

|Comparative Results(Adjusted for Maximum Sales Charge) as of 12/31/07
|---------------------------------------------------------------------
|DWS Communications Fund                                              
|Class A                                                              
|Average annual total return                                          
|Class B                                                              
|Average annual total return                                          
|Class C                                                              
|Average annual total return                                          
|S&P 500 Index+                                                       
|Average annual total return                                          

The growth of $10,000 is cumulative.

|Growth of an Assumed $1,000,000 Investment                      
|----------------------------------------------------------------
|[]DWS Communications Fund  Institutional Class
[]S&P 500 Index+
|cf_g10k200                                                      
|Yearly periods ended December 31                                

|Comparative Resultsas of 12/31/07
|---------------------------------
|DWS Communications Fund          
|Institutional
Class              
|Average annual total return      
|S&P 500
Index+                   
|Average annual total return      

The growth of $1,000,000 is cumulative.

The minimum initial investment for Institutional Class shares is $1,000,000.

Information About Your Fund's Expenses

As an investor of the Fund, you incur two types of costs: ongoing
expenses and transaction costs. Ongoing expenses include management
fees, distribution and service (12b-1) fees and other Fund expenses.
Examples of transaction costs include sales charges (loads), redemption
fees and account maintenance fees, which are not shown in this section.
The following tables are intended to help you understand your ongoing
expenses (in dollars) of investing in the Fund and to help you compare
these expenses with the ongoing expenses of investing in other mutual
funds. In the most recent six-month period, Class A, B and C shares
limited these expenses; had they not done so, expenses would have been
higher. The example in the table is based on an investment of $1,000
invested at the beginning of the period and held for the entire six-month
period(July 1, 2007 to December 31, 2007).

The tables illustrate your Fund's expenses in two ways:

Actual Fund Return. This helps you estimate the actual dollar amount
of ongoing expenses (but not transaction costs) paid on a $1,000
investment in the Fund using the Fund's actual return during the
period. To estimate the expenses you paid over the period, simply
divide your account value by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number
in the "Expenses Paid per $1,000" line under the share class you hold.

Hypothetical 5% Fund Return. This helps you to compare your Fund's
ongoing expenses (but not transaction costs) with those of other
mutual funds using the Fund's actual expense ratio and a hypothetical
rate of return of 5% per year before expenses. Examples using a 5%
hypothetical fund return may be found in the shareholder reports of
other mutual funds. The hypothetical account values and expenses
may not be used to estimate the actual ending account balance or
expenses you paid for the period.

Please note that the expenses shown in these tables are meant to
highlight your ongoing expenses only and do not reflect any transaction
costs. The "Expenses Paid per $1,000" line of the tables is useful in
comparing ongoing expenses only and will not help you determine the
relative total expense of owning different funds. If these transaction costs
had been included, your costs would have been higher.

|Expenses and Value of a $1,000 Investmentfor the six months ended December 31, 2007
|-----------------------------------------------------------------------------------
|Actual Fund Return                                                                 
|Beginning Account Value 7/1/07                                                     
|Ending Account Value 12/31/07                                                      
|Expenses Paid per $1,000*                                                          
|Hypothetical 5% Fund Return                                                        
|Beginning Account Value 7/1/07                                                     
|Ending Account Value 12/31/07                                                      
|Expenses Paid per $1,000*                                                          

|Annualized Expense Ratios | Class A | Class B | Class C | Institutional
Class
|------------------------- | ------- | ------- | ------- | -------------------
|DWS Communications Fund   | 1.44%   | 2.19%   | 2.19%   | 1.07%              

For more information, please refer to the Fund's prospectus.

Portfolio Management Review

DWS Communications Fund: A Team Approach to Investing

Deutsche Investment Management Americas Inc. ("DIMA" or the
"Advisor"), which is part of Deutsche Asset Management, is theDWSCommunications Fund's (the "fund") investment advisor and Alex. Brown
Investment Management, LLC ("ABIM" or the "Sub-Advisor") is the
fund's sub-advisor. DIMA is also the investment advisor to other mutual
funds in the DWS family of funds. DIMA and its predecessors have more
than 80 years of experience managing mutual funds, and DIMA provides a
full range of investment advisory services to institutional and retail clients.
ABIM, a registered investment advisor with approximately $8.53 billion
under management as of December 31, 2007, is a Maryland LLC owned
by J. Dorsey Brown and Buppert, Behrens & Owen, Inc. (a company
organized by three principals of ABIM) R. Hutchings Vernon, Richard W.
Palmer and Joseph J. Quingert.

Deutsche Asset Management is a global asset management organization
that offers a wide range of investing expertise and resources. This
well-resourced global investment platform brings together a wide variety
of experience and investment insight across industries, regions, asset
classes and investing styles.

DIMA is responsible for supervising and managing all of the fund's
operations, including overseeing the activities of ABIM. ABIM is
responsible for decisions to buy and sell securities for the fund, for
broker-dealer selection, and for negotiation of commission rates.

DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG.
Deutsche Bank is a major global banking institution that is engaged in a
wide range of financial services, including investment management,
mutual funds, retail, private and commercial banking, investment banking,
and insurance.

Portfolio Management Team

Bruce E. Behrens

VicePresident and Principal of ABIM and Co-Manager of the fund.

Co-managed the fund since its inception.

39 years of investment industry experience.

MBA, University of Michigan.

Patrick J. O'Brien

Vice President of ABIM and Co-Manager of the fund.

Co-managed the fund since 2002.

25 years of investment industry experience, including portfolio manager and analyst with
ABIM July 2001-present; analyst with Delaware Management Co., June 2000-July
2001; and portfolio manager with Prudential Insurance Co., February 1999-May 2000.

MBA, Columbia University.

In the following interview, Portfolio Managers Bruce E. Behrens and
Patrick J. O'Brien discuss the market environment, fund performance
and their strategy in managing DWS Communications Fund during
the 12-month period ended December 31, 2007.

The views expressed in the following discussion reflect those of the portfolio managers only
through the end of the period of the report as stated on the cover. The management team's
views are subject to change at any time based on market and other conditions and should
not be construed as a recommendation. Past performance is no guarantee of future results.

Q: How did the communications sector and the fund perform
during the past 12 months?

A:Communications-related shares delivered their second
consecutive year of outperformance in 2007. At a time of financial
sector turmoil and rising concerns about a potential recession,
investors viewed the communications sector as a relatively
"safe haven." Unfortunately, the fund was not fully able to
participate in the sector's strong performance due to its position
in financial stocks. Throughout our tenure as the fund's managers,
we have held a portion of the portfolio in reasonably valued
financial companies as an alternative to more richly valued
investments in the communications sector. While this has been
a positive for the fund over the long term, it weighed heavily on
performance in the second half of the year given the significant
underperformance of financials.

The result, for the Class A shares of the fund, was a loss of
-0.51% during the calendar year. This return lagged both the
5.49% gain of the Standard & Poor's 500® (S&P 500) Index and
the 10.97% average return of funds in Lipper's
Telecommunications Funds category.1,2 Despite the fund's
underperformance, it remains ahead of the S&P 500 for both the
three- and five-year periods. (Returns are unadjusted for sales
charges. If sales charges had been included, returns would have
been lower. Past performance is no guarantee of future results.
Please see pages 4 through 7 for the performance of other
share classes and more complete performance information.)

Q: What specific holdings in financials detracted from
performance?

A:Most notable was Countrywide Financial Corp., the mortgage
originator whose shares plunged amid the liquidity crunch that
unfolded in the second half of the year. We believed the company
had sound fundamentals and an attractive valuation, but we did
not anticipate that the entire market for mortgage securitizations
would dry up. The fund was therefore vulnerable to the
subsequent sharp decline in Countrywide shares. Also weighing
on performance was First Marblehead Corp., which services and
securitizes student loans. As such, it also was hurt by the freezing
up of the loan securitization market. We anticipate the company
coming out of this crisis with its business well intact, and
continue to hold it in the portfolio.

The fund now has a reduced weighting in financials following
the sale of two other stocks in the sector: Capital One Financial
Corp. and Freddie Mac. Both were sold at a profit over the
initial purchase.

Q: Which fund holdings contributed most to performance?

A:The leading individual contributor was a stock that was
discussed in the semiannual report to shareholders: America
Movil SAB de CV. The company has dominant market share of the
wireless business in Mexico, and it also holds a large share in
Brazil. We originally purchased the stock in February 2001, and
continued to hold it even when it was under pressure due to
concerns about its slowing growth rate. However, our analysis of
the company's up-front costs in signing up new subscribers
indicated that a slowing top-line growth rate could actually be a
positive for bottom-line earnings by reducing these costs. This in
fact has proven to be the case: While America Movil's revenues
are no longer growing at 30-40%, its profit margins have
expanded as its up-front costs have decreased. This was reflected
in a gain in the share price of the company's American Depositary
Receipts (ADRs) from $45.22 to $61.39 during 2007.

Another emerging-markets-based telecom, Millicom International
Cellular SA, also was among the fund's top performers for the
year. The company, which runs cellular systems in South America,
Africa, and Southeast Asia, has made a profitable enterprise of
bringing wireless services to the poorest people in the world.
Falling prices for handsets have created a new market among
people that previously had no access to phone service, and
Millicom has taken advantage of this by offering features such as
charging by the second rather than the minute, and by offering
prepaid service in increments as low as 20 cents. This
user-friendly approach has allowed Millicom to thrive even in a
highly competitive market.

The third-best contributor in the fund was Reliance
Communications Ltd., an India-based company that, like Millicom,
has profited by bringing low-cost wireless service to people in the
lowest income strata. Also performing well for the fund was
Cbeyond, Inc., which has virtually no competition in the market
for telecom services for smaller companies (those with five to
20 employees). Since larger companies cannot serve this niche
profitably, Cbeyond has benefited from its ability to sell multiple
services  thereby streamlining the purchasing process and
billing for small companies.

Q: What were some stocks in the communications sector that
did not perform as well?

A:The most significant non-financial detractor was the fund's
position in the yellow pages publisher R.H. Donnelly Corp. (RHD).
We have long been fans of the yellow pages company since it is
an easily managed and high cash flow business. While positions
in this sector have held the fund in good stead over time, RHD
performed poorly during the period largely due to investors'
concerns about the company's extremely high debt load. Still,
RHD continues to produce enormous cash flows  about $8.50
per share compared with a year-end share price of about $36 
and we continue to hold it in the portfolio.

NII Holdings, Inc., the wireless provider in Mexico and Brazil, also
stood out as a detractor. The company's shares declined sharply
after it reported lower-than-expected subscriber additions in the
third quarter. Although the company missed expectations by only
a small amount, the stock was hit hard in the tough market of the
second half. We believe this was an overreaction and we retain a
positive view of the company's long-term prospects and continue
to hold it in the fund.

Clearwire Corp., a new addition to the portfolio that was
purchased at its initial public offering (IPO) price of $25 in March,
initially surged to a high of $35 on news that it had signed an
agreement with Sprint to employ its wireless broadband
technology nationwide. This agreement was subsequently
cancelled following the ouster of Sprint's CEO, news that sent
Clearwire's stock down to approximately $14 by year-end.
Believing the company has a sound asset value due to its
ownership of valuable communications spectrum, we are
maintaining the fund's position.

Rounding out the list of detractors was Virgin Mobile USA, Inc.,
which offers both excellent service quality and a prepaid plan that
is popular with teenagers. The stock came to the market as an
IPO in mid-October, exposing it to the extremely negative market
environment that characterized the fourth quarter. We believed
the stock offered value at its IPO price of $15, and we think the
value is even more compelling following the stock's decline to
under $9 by year-end.

Q: What are some other notable elements of the fund's
positioning?

A:During the past half-year, we have reduced the fund's
weighting in its top positions to improve diversification. Whereas
in the past we held several positions that made up over 10% of
net assets, we have reconfigured the portfolio so it will not be
quite so concentrated. Another notable change was our reduction
in the fund's weighting in wireless tower companies via partial
sales of both Crown Castle International Corp. and American
Tower Corp. Although demand for "real estate" on cellular towers
continues to grow, we believe the valuations of these companies
had moved to levels that made them more vulnerable to a
potential disappointment.

We also added a handful of new positions to the fund. In addition
to participating in the IPOs of Clearwire Corp. and Virgin Mobile,
mentioned above, we purchased shares in the IPO of the Mexican
company Maxcom Telecomunicaciones SAB de CV. As was the
case with Virgin Mobile, the stock came to the market at a bad
time and has since underperformed, but we are confident in the
long-term value of its shares.

Another new addition of note was MasterCard, Inc. The company
manages the network used to transfer money in credit card
transactions  meaning that it profits through transaction volume
rather than consumer lending. MasterCard's business is
expanding rapidly, and  significantly  new business doesn't
lead to meaningful increases in its cost base. We also purchased
shares in Moody's Corp. and McGraw-Hill Companies, Inc., which
owns Standard & Poor's. Both companies issue credit ratings for
debt securities, meaning that the subprime crisis and related
credit crunch has weighed heavily on their shares in the short
term. From a longer-term standpoint, however, we believe both
offer outstanding value, and we have used weakness in the
broader market to build a position in both stocks.

Q: Do you have any final thoughts for investors?

A:The past year has been a difficult time for the fund. Not only
did its positions in financials decline, but many of its holdings in
communications stocks lagged the market despite what we
believe to be attractive valuations. Looking forward, we are
confident in the values offered by the stocks held in the portfolio.
Although 2007 was characterized by an environment in which
attractively valued stocks were generally out of favor with
investors, we believe a focus on valuations should be rewarded
over time.

Portfolio Summary

|Asset Allocation(As a % of Investment Portfolio Excluding
Securities Lending Collateral) | 12/31/07 | 12/31/06
|---------------------------------------------------------------------------------------- | -------- | --------
|                                                                                         |          |         
|Common Stocks                                                                            | 88%      | 99%     
|Warrants                                                                                 | 9%       | 1%      
|Cash Equivalents                                                                         | 3%       |        
|                                                                                         | 100%     | 100%    

|Sector Diversification(As a % of Common Stocks) | 12/31/07 | 12/31/06
|----------------------------------------------- | -------- | --------
|                                                |          |         
|Wireless Services                               | 58%      | 45%     
|Specialty Services                              | 17%      | 19%     
|Publishing                                      | 11%      | 12%     
|Financials                                      | 8%       | 10%     
|National Carriers                               | 5%       | 3%      
|Media                                           | 1%       | 6%      
|Communications Equipment                        |         | 3%      
|International Network Operations                |         | 2%      
|                                                | 100%     | 100%    

Asset allocation and sector diversification are subject to change.

|Ten Largest Equity Holdings at December 31, 2007(60.2% of Net Assets)                                
|-----------------------------------------------------------------------------------------------------
|1.      America Movil SAB de CV
Provider of wireless communications services                         
|2.      Millicom International Cellular SA
Develops and operates cellular telephone systems worldwide
|3.      Cbeyond, Inc.
Offers telecommunications services to small businesses                         
|4.      NII Holdings, Inc.
Provides mobile communications for business customers in Latin America    
|5.      Virgin Mobile USA, Inc.
Provides wireless communications services                            
|6.      Tim Participacoes SA
Provider of cellular telecommunications to the southern region of Brazil
|7.      Clearwire Corp.
Provides wireless broadband services                                         
|8.      R.H. Donnelley Corp.
Marketer of yellow pages                                                
|9.      Leucadia National Corp.
Provider of banking and lending services                             
|10.     SBA Communications Corp.
Owns and operates wireless communications infrastructure            

Portfolio holdings are subject to change.

For more complete details about the Fund's investment portfolio, see page 19. A quarterly
Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund
as of month end will be posted to www.dws-scudder.com on or after the last day of the
following month. In addition, the Fund's top ten holdings and other information about the
Fund is posted on www.dws-scudder.com as of the calendar quarter-end on or after the
15th day following quarter-end. Please see the Account Management Resources section for
contact information.

Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be
available on the SEC's Web site at www.sec.gov, and it also may be
reviewed and copied at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the SEC's Public Reference Room
may be obtained by calling (800) SEC-0330.

Investment Portfolioas of December 31, 2007

|                                                                  | Shares      | Value ($) 
|----------------------------------------------------------------- | ----------- | ----------
|                                                                  |            
|Common Stocks 88.4%                                              
|Financials 7.2%                                                  
|Countrywide Financial Corp. (a)                                   | 285,000     | 2,547,900 
|First Marblehead Corp.                                            | 300,000     | 4,590,000 
|Leucadia National Corp. (a)                                       | 289,300     | 13,626,030
|                                                                  | 20,763,930 
|Media 0.4%                                                       
|Liberty Global, Inc. "A"* (a)                                     | 16,949      | 664,231   
|Liberty Global, Inc. "C"*                                         | 17,444      | 638,276   
|                                                                  | 1,302,507  
|National Carriers 4.7%                                           
|Atlantic Tele-Network, Inc.                                       | 201,825     | 6,817,648 
|Chungwa Telecom Co; Ltd. (ADR)                                    | 87,514      | 1,847,421 
|Maxcom Telecomunicaciones SAB de CV (ADR)*                        | 400,000     | 5,084,000 
|                                                                  | 13,749,069 
|Publishing 9.6%                                                  
|Moody's Corp. (a)                                                 | 200,000     | 7,140,000 
|McGraw-Hill Companies, Inc.                                       | 100,000     | 4,381,000 
|PagesJaunes SA                                                    | 128,572     | 2,568,513 
|R.H. Donnelley Corp.* (a)                                         | 376,012     | 13,716,918
|                                                                  | 27,806,431 
|Specialty Services 14.7%                                         
|Cbeyond, Inc.* (a)                                                | 510,000     | 19,884,900
|IHS, Inc. "A"*                                                    | 50,000      | 3,028,000 
|Liquidity Services, Inc.* (a)                                     | 281,000     | 3,624,900 
|NeuStar, Inc. "A"*                                                | 150,000     | 4,302,000 
|MasterCard, Inc. "A" (a)                                          | 55,000      | 11,836,000
|Redecard SA (GDR) 144A                                            | 2,600       | 84,135    
|                                                                  | 42,759,935 
|Wireless Services 51.8%                                          
|America Movil SAB de CV "L" (ADR)                                 | 450,000     | 27,625,499
|American Tower Corp. "A"*                                         | 254,500     | 10,841,700
|Clearwire Corp. "A"* (a)                                          | 1,002,500   | 13,744,275
|Crown Castle International Corp.* (a)                             | 120,000     | 4,992,000 
|Leap Wireless International, Inc.* (a)                            | 150,000     | 6,996,000 
|Millicom International Cellular SA* (a)                           | 200,000     | 23,588,000
|NII Holdings, Inc.*                                               | 400,000     | 19,328,000
|SBA Communications Corp. "A"* (a)                                 | 398,145     | 13,473,227
|Tim Participacoes SA (ADR) (Preferred) (a)                        | 398,100     | 13,913,595
|Virgin Mobile USA, Inc. "A"* (a)                                  | 1,800,000   | 16,002,000
|                                                                  | 150,504,296
|Total Common Stocks (Cost $192,056,805)                           | 256,886,168
|                                                                 
|Warrants 9.4%                                                    
|Bharti Airtel Ltd., Expiration Date 10/31/2011*                   | 422,100     | 10,670,688
|Reliance Communications Ltd., Expiration Date 10/31/2011*         | 874,500     | 16,560,407
|Total Warrants (Cost $18,374,811)                                 | 27,231,095 
|                                                                 
|Securities Lending Collateral 21.1%                              
|Daily Assets Fund Institutional, 5.03% (b) (c)
(Cost $61,239,513) | 61,239,513  | 61,239,513
|                                                                 
|Cash Equivalents 2.7%                                            
|Cash Management QP Trust, 4.67% (b) (Cost $7,912,324)             | 7,912,324   | 7,912,324 

|                                               | % of Net
Assets | Value ($)   
|---------------------------------------------- | --------------- | ------------
|                                               |                
|Total Investment Portfolio(Cost $279,583,453)+ | 121.6           | 353,269,100 
|Other Assets and Liabilities, Net              | (21.6)          | (62,810,479)
|Net Assets                                     | 100.0           | 290,458,621 

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to
qualified institutional buyers.

ADR: American Depositary Receipt

GDR: Global Depositary Receipt

The accompanying notes are an integral part of the financial statements.

Financial Statements

|Statement of Assets and Liabilitiesas of December 31, 2007                                                      
|----------------------------------------------------------------------------------------------------------------
|Assets                                                                                                          
|Investments:Investments in securities, at value (cost $210,431,616)  including
$59,178,216 of securities loaned
|Investment in Daily Assets Fund Institutional (cost $61,239,513)*                                               
|Investment in Cash Management QP Trust (cost $7,912,324)                                                        
|Total investments, at value (cost $279,583,453)                                                                 
|Cash                                                                                                            
|Foreign currency, at value (cost $66)                                                                           
|Dividends receivable                                                                                            
|Interest receivable                                                                                             
|Receivable for Fund shares sold                                                                                 
|Foreign taxes recoverable                                                                                       
|Other assets                                                                                                    
|Total assets                                                                                                    
|Liabilities                                                                                                     
|Payable for Fund shares redeemed                                                                                
|Payable upon return of securities loaned                                                                        
|Accrued management fee                                                                                          
|Other accrued expenses and payables                                                                             
|Total liabilities                                                                                               
|Net assets, at value                                                                                            
|Net Assets Consist of                                                                                           
|Net unrealized appreciation (depreciation) on:                                                                  
|Investments                                                                                                     
|Foreign currency                                                                                                
|Accumulated net realized gain (loss)                                                                            
|Paid-in capital                                                                                                 
|Net assets, at value                                                                                            

The accompanying notes are an integral part of the financial statements.

|Statement of Assets and Liabilitiesas of December 31, 2007 (continued)                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Net Asset Value                                                                                                                                                                                                             
|Class A
Net Asset Value and redemption price(a) per share
($269,493,756 ÷ 11,588,520 shares of capital stock outstanding,
$.001 par value, 75,000,000 shares authorized)                                                    
|Maximum offering price per share (100 ÷ 94.25 of $23.26)                                                                                                                                                                    
|Class B
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($4,650,487 ÷ 217,987 shares of capital
stock outstanding, $.001 par value, 30,000,000 shares authorized) 
|Class C
Net Asset Value, offering and redemption price(a) (subject to contingent
deferred sales charge) per share ($11,310,767 ÷ 529,837 shares of capital
stock outstanding, $.001 par value, 15,000,000 shares authorized)
|Institutional Class
Net Asset Value, offering and redemption price(a) per share
($5,003,611 ÷ 210,007 shares of capital stock outstanding,
$.001 par value, 15,000,000 shares authorized)                                   

The accompanying notes are an integral part of the financial statements.

|Statement of Operationsfor the year ended December 31, 2007                                              
|---------------------------------------------------------------------------------------------------------
|Investment Income                                                                                        
|Income:Dividends (net of foreign taxes withheld of $47,261)                                              
|Interest  Cash Management QP Trust                                                                      
|Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates
|Interest                                                                                                 
|Total Income                                                                                             
|Expenses:Management fee                                                                                  
|Services to shareholders                                                                                 
|Administration fee                                                                                       
|Custodian fee                                                                                            
|Distribution and service fees                                                                            
|Professional fees                                                                                        
|Directors' fees and expenses                                                                             
|Reports to shareholders                                                                                  
|Registration fees                                                                                        
|Other                                                                                                    
|Total expenses before expense reductions                                                                 
|Expense reductions                                                                                       
|Total expenses after expense reductions                                                                  
|Net investment income (loss)                                                                             
|Realized and Unrealized Gain (Loss)                                                                      
|Net realized gain (loss) from:Investments                                                                
|Foreign currency                                                                                         
|                                                                                                         
|Change in net unrealized appreciation (depreciation) during the period on:
Investments                   
|Foreign currency                                                                                         
|                                                                                                         
|Net gain (loss)                                                                                          
|Net increase (decrease) in net assets resulting from operations                                          

The accompanying notes are an integral part of the financial statements.

|Statement of Changes in Net Assets                                                                    
|------------------------------------------------------------------------------------------------------
|Increase (Decrease) in Net Assets                                                                     
|2007                                                                                                  
|Operations:Net investment income (loss)                                                               
|Net realized gain (loss)                                                                              
|Change in net unrealized appreciation (depreciation)                                                  
|Net increase (decrease) in net assets resulting from
operations                                       
|Fund share transactions:Proceeds from shares sold                                                     
|Cost of shares redeemed                                                                               
|Redemption fees                                                                                       
|Net increase (decrease) in net assets from Fund share
transactions                                    
|Increase (decrease) in net assets                                                                     
|Net assets at beginning of period                                                                     
|Net assets at end of period (including accumulated net
investment loss of $0 and $7,386, respectively)

The accompanying notes are an integral part of the financial statements.

Financial Highlights

|Class A
Years Ended December 31,                                                                                                                                                                                            | 2007       | 2006       | 2005       | 2004       | 2003      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                    
|Net asset value, beginning of period                                                                                                                                                                                        | $    23.38 | $    19.30 | $    16.79 | $    13.85 | $    11.27
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                     | (.08)      | (.03)      | (.03)      | (.08)      | .01       
|Net realized and unrealized gain (loss)                                                                                                                                                                                     | (.04)      | 4.11       | 2.54       | 3.02       | 2.57      
|Total from investment operations                                                                                                                                                                                            | (.12)      | 4.08       | 2.51       | 2.94       | 2.58      
|Redemption fees                                                                                                                                                                                                             | .00*       | .00*       | .00*       | -          | -         
|Net asset value, end of period                                                                                                                                                                                              | $    23.26 | $    23.38 | $    19.30 | $    16.79 | $    13.85
|Total Return (%)b,c                                                                                                                                                                                                         | (.51)      | 21.14      | 14.95      | 21.23      | 22.89     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                         
|Net assets, end of period ($ millions)                                                                                                                                                                                      | 269        | 329        | 295        | 284        | 286       
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                             | 1.49       | 1.63       | 1.58       | 1.69       | 1.49      
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                              | 1.44       | 1.49       | 1.43       | 1.54       | 1.34      
|Ratio of net investment income (loss) (%)                                                                                                                                                                                   | (.32)      | (.13)      | (.18)      | (.55)      | .13       
|Portfolio turnover rate (%)                                                                                                                                                                                                 | 39         | 27         | 21         | 34         | 62        
|aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.*Amount is less than $.005.

|Class B
Years Ended December 31,                                                                                                                                                                                            | 2007       | 2006       | 2005       | 2004       | 2003      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                    
|Net asset value, beginning of period                                                                                                                                                                                        | $    21.61 | $    17.96 | $    15.75 | $    13.09 | $    10.80
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                     | (.23)      | (.15)      | (.13)      | (.17)      | (.07)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                     | (.05)      | 3.80       | 2.34       | 2.83       | 2.36      
|Total from investment operations                                                                                                                                                                                            | (.28)      | 3.65       | 2.21       | 2.66       | 2.29      
|Redemption fees                                                                                                                                                                                                             | .00*       | .00*       | .00*       | -          | -         
|Net asset value, end of period                                                                                                                                                                                              | $    21.33 | $    21.61 | $    17.96 | $    15.75 | $    13.09
|Total Return (%)b,c                                                                                                                                                                                                         | (1.30)     | 20.32      | 14.03      | 20.32      | 21.20     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                         
|Net assets, end of period ($ millions)                                                                                                                                                                                      | 5          | 10         | 27         | 66         | 83        
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                             | 2.66       | 2.47       | 2.33       | 2.44       | 2.24      
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                              | 2.19       | 2.24       | 2.18       | 2.29       | 2.09      
|Ratio of net investment income (loss) (%)                                                                                                                                                                                   | (1.07)     | (.88)      | (.93)      | (1.30)     | (.62)     
|Portfolio turnover rate (%)                                                                                                                                                                                                 | 39         | 27         | 21         | 34         | 62        
|aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.*Amount is less than $.005.

|Class C
Years Ended December 31,                                                                                                                                                                                            | 2007       | 2006       | 2005       | 2004       | 2003      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                                                                                    
|Net asset value, beginning of period                                                                                                                                                                                        | $    21.63 | $    17.98 | $    15.77 | $    13.10 | $    10.81
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                                                                                     | (.23)      | (.15)      | (.14)      | (.17)      | (.06)     
|Net realized and unrealized gain (loss)                                                                                                                                                                                     | (.05)      | 3.80       | 2.35       | 2.84       | 2.35      
|Total from investment operations                                                                                                                                                                                            | (.28)      | 3.65       | 2.21       | 2.67       | 2.29      
|Redemption fees                                                                                                                                                                                                             | .00*       | .00*       | .00*       | -          | -         
|Net asset value, end of period                                                                                                                                                                                              | $    21.35 | $    21.63 | $    17.98 | $    15.77 | $    13.10
|Total Return (%)b,c                                                                                                                                                                                                         | (1.29)     | 20.30      | 14.01      | 20.38      | 21.18     
|Ratios to Average Net Assets and Supplemental Data                                                                                                                                                                         
|Net assets, end of period ($ millions)                                                                                                                                                                                      | 11         | 13         | 13         | 15         | 15        
|Ratio of expenses before expense
reductions (%)                                                                                                                                                                             | 2.38       | 2.43       | 2.33       | 2.44       | 2.24      
|Ratio of expenses after expense
reductions (%)                                                                                                                                                                              | 2.19       | 2.24       | 2.18       | 2.29       | 2.09      
|Ratio of net investment income (loss) (%)                                                                                                                                                                                   | (1.07)     | (.88)      | (.93)      | (1.30)     | (.62)     
|Portfolio turnover rate (%)                                                                                                                                                                                                 | 39         | 27         | 21         | 34         | 62        
|aBased on average shares outstanding during the period.bTotal return does not reflect the effect of any sales charges.cTotal return would have been lower had certain expenses not been reduced.*Amount is less than $.005.

|Institutional Class
Years Ended December 31,                                                                                                                 | 2007       | 2006       | 2005       | 2004       | 2003      
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ---------- | ---------- | ---------- | ----------
|Selected Per Share Data                                                                                                                                     
|Net asset value, beginning of period                                                                                                                         | $    23.88 | $    19.66 | $    17.06 | $    14.03 | $    11.37
|Income (loss) from investment operations:
Net investment income (loss)a                                                                                      | .00        | .02        | .01        | (.05)      | .04       
|Net realized and unrealized gain (loss)                                                                                                                      | (.05)      | 4.20       | 2.59       | 3.08       | 2.62      
|Total from investment operations                                                                                                                             | (.05)      | 4.22       | 2.60       | 3.03       | 2.66      
|Redemption fees                                                                                                                                              | .00*       | .00*       | .00*       | -          | -         
|Net asset value, end of period                                                                                                                               | $    23.83 | $    23.88 | $    19.66 | $    17.06 | $    14.03
|Total Return (%)                                                                                                                                             | (.21)      | 21.46b     | 15.24b     | 21.60b     | 23.39b    
|Ratios to Average Net Assets and Supplemental Data                                                                                                          
|Net assets, end of period ($ millions)                                                                                                                       | 5          | 4          | 2          | 2          | 2         
|Ratio of expenses before expense
reductions (%)                                                                                                              | 1.10       | 1.33       | 1.33       | 1.44       | 1.30      
|Ratio of expenses after expense
reductions (%)                                                                                                               | 1.10       | 1.24       | 1.18       | 1.30       | 1.15      
|Ratio of net investment income (loss) (%)                                                                                                                    | .02        | .12        | .07        | (.31)      | .32       
|Portfolio turnover rate (%)                                                                                                                                  | 39         | 27         | 21         | 34         | 62        
|aBased on average shares outstanding during the period.bTotal return would have been lower had certain expenses not been reduced.*Amount is less than $.005.

Notes to Financial Statements

A. Significant Accounting Policies

DWS Communications Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end, non-diversified management investment company organized as
a Maryland Corporation.

The Fund offers multiple classes of shares which provide investors with
different purchase options. Class A shares are offered to investors subject
to an initial sales charge. Class B shares are offered to investors without
an initial sales charge but are subject to higher ongoing expenses than
Class A shares and a contingent deferred sales charge payable upon
certain redemptions. Class B shares automatically convert to Class A
shares six years after issuance. Class C shares are offered to investors
without an initial sales charge but are subject to higher ongoing expenses
than Class A shares and a contingent deferred sales charge payable upon
certain redemptions within one year of purchase. Class C shares do not
convert into another class. Institutional Class shares are offered to a
limited group of investors, are not subject to initial or contingent deferred
sales charges and have lower ongoing expenses than other classes.

Investment income, realized and unrealized gains and losses, and certain
fund-level expenses and expense reductions, if any, are borne pro rata on
the basis of relative net assets by the holders of all classes of shares,
except that each class bears certain expenses unique to that class such as
services to shareholders, distribution and service fees and certain other
class-specific expenses. Differences in class-level expenses may result in
payment of different per share dividends by class. All shares of the Fund
have equal rights with respect to voting subject to class-specific
arrangements.

The Fund's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America
which require the use of management estimates. Actual results could
differ from those estimates. The policies described below are followed
consistently by the Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the
close of regular trading on the New York Stock Exchange on each day the
exchange is open for trading. Equity securities are valued at the most
recent sale price or official closing price reported on the exchange (US or
foreign) or over-the-counter market on which the security is traded most
extensively. Securities for which no sales are reported are valued at the
calculated mean between the most recent bid and asked quotations on
the relevant market or, if a mean cannot be determined, at the most
recent bid quotation.

Debt securities are valued by independent pricing services approved by
the Directors of the Fund. If the pricing services are unable to provide
valuations, the securities are valued at the most recent bid quotation or
evaluated price, as applicable, obtained from a broker-dealer. Such
services may use various pricing techniques which take into account
appropriate factors such as yield, quality, coupon rate, maturity, type of
issue, trading characteristics and other data, as well as broker quotes.

Money market instruments purchased with an original or remaining
maturity of sixty days or less, maturing at par, are valued at amortized
cost. Investments in open-end investment companies and Cash
Management QP Trust are valued at their net asset value each business
day.

Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to
reflect fair value are valued in a manner that is intended to reflect their fair
value as determined in accordance with procedures approved by the
Directors. The Fund may use a fair valuation model to value international
equity securities in order to adjust for events which may occur between
the close of the foreign exchanges and the close of the New York Stock
Exchange.

In September 2006, the Financial Accounting Standards Board (FASB)
released Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair
value measurements. FAS 157 is effective for fiscal years beginning after
November 15, 2007. As of December 31, 2007, management does not
believe the adoption of FAS 157 will impact the amounts reported in the
financial statements, however, additional disclosures will be required
about the inputs used to develop the measurements of fair value and the
effect of certain of the measurements reported in the statement of
operations for a fiscal period.

Securities Lending. The Fund may lend securities to financial institutions.
The Fund retains beneficial ownership of the securities it has loaned and
continues to receive interest and dividends paid by the issuer of securities
and to participate in any changes in their market value. The Fund requires
the borrowers of the securities to maintain collateral with the Fund
consisting of liquid, unencumbered assets having a value at least equal to
the value of the securities loaned. The Fund may invest the cash collateral
into a joint trading account in an affiliated money market fund pursuant to
Exemptive Orders issued by the SEC. The Fund receives compensation
for lending its securities either in the form of fees or by earning interest
on invested cash collateral net of borrower rebates and fees paid to the
lending agent. Either the Fund or the borrower may terminate the loan.
The Fund is subject to all investment risks associated with the value of
any cash collateral received, including, but not limited to, interest rate,
credit and liquidity risk associated with such investments.

Foreign Currency Translations. The books and records of the Fund are
maintained in US dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into US dollars
at the prevailing exchange rates at period end. Purchases and sales of
investment securities, income and expenses are translated into US dollars
at the prevailing exchange rates on the respective dates of the
transactions.

Net realized and unrealized gains and losses on foreign currency
transactions represent net gains and losses between trade and
settlement dates on securities transactions, the disposition of forward
foreign currency exchange contracts and foreign currencies, and the
difference between the amount of net investment income accrued and
the US dollar amount actually received. That portion of both realized and
unrealized gains and losses on investments that results from fluctuations
in foreign currency exchange rates is not separately disclosed but is
included with net realized and unrealized gain/appreciation and
loss/depreciation on investments.

Federal Income Taxes. The Fund's policy is to comply with the
requirements of the Internal Revenue Code, as amended, which are
applicable to regulated investment companies, and to distribute all of its
taxable income to its shareholders. Accordingly, the Fund paid no federal
income taxes and no federal income tax provision was required.

At December 31, 2007, the Fund had a net tax basis capital loss
carryforward of approximately $407,991,000 which may be applied against
any realized net taxable capital gains of each succeeding year until fully
utilized or until December 31, 2009, ($45,405,000), December 31, 2010
($344,993,000), December 31, 2011 ($3,433,000), December 31, 2012
($9,289,000) and December 31, 2013 ($4,871,000), the respective
expiration dates, whichever occurs first, which may be subject to certain
limitations under sections 382-383 of the Internal Revenue Code.

During the year ended December 31, 2007, the Fund utilized
approximately $64,975,000 of its prior year capital loss carryforward.

The Fund has reviewed the tax positions for each of the three open tax
years as of December 31, 2007 and has determined that no provision for
income tax is required in the Fund's financial statements. Each of the
Fund's federal tax returns for the prior three fiscal years remains subject
to examination by the Internal Revenue Service.

Distribution of Income and Gains. Net investment income of the Fund,
if any, is declared and distributed to shareholders annually. Net realized
gains from investment transactions, in excess of available capital loss
carryforwards, would be taxable to the Fund if not distributed, and,
therefore, will be distributed to shareholders at least annually.

The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax
regulations which may differ from accounting principles generally
accepted in the United States of America. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for
a reporting period may differ significantly from distributions during such
period. Accordingly, the Fund may periodically make reclassifications
among certain of its capital accounts without impacting the net asset
value of the Fund.

At December 31, 2007, the Fund's components of distributable earnings
(accumulated losses) on a tax-basis are as follows:

|Capital loss carryforwards                            | $       (407,991,000)
|----------------------------------------------------- | ---------------------
|Unrealized appreciation (depreciation) on investments | $       73,685,647   

Redemption Fees. For the period from January 1, 2007 to March 11, 2007,
the redemption or exchange of shares held for less than 30 days were
assessed a fee of 2% of the total amount redeemed or exchanged.
Effective March 12, 2007, the Fund imposes a redemption fee of 2% of
the total redemption amount on all Fund shares redeemed or exchanged
within 15 days of buying them, either by purchase or exchange. This fee is
assessed and retained by the Fund for the benefit of the remaining
shareholders. The redemption fee is accounted for as an addition to
paid-in-capital.

Contingencies. In the normal course of business, the Fund may enter into
contracts with service providers that contain general indemnification
clauses. The Fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against
the Fund that have not yet been made. However, based on experience,
the Fund expects the risk of loss to be remote.

Other.Investment transactions are accounted for on a trade date plus one
basis for daily net asset value calculations. However, for financial reporting
purposes, investment security transactions are reported on trade date.
Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date net of foreign withholding taxes. Certain
dividends from foreign securities may be recorded subsequent to the
ex-dividend date as soon as the Fund is informed of such dividends.
Realized gains and losses from investment transactions are recorded
on an identified cost basis.

B. Purchases and Sales of Securities

During the year ended December 31, 2007, purchases and sales of
investment securities (excluding short-term investments) aggregated
$136,518,595 and $207,513,475, respectively.

C. Related Parties

DWS Scudder is part of Deutsche Asset Management, which is the
marketing name in the US for the asset management activities of
Deutsche Bank AG. Deutsche Investment Management Americas Inc.
("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of
Deutsche Bank AG, is the Advisor of the Fund. Prior to April 1, 2007,
Investment Company Capital Corporation ("ICCC" or the "Advisor"), an
indirect, wholly owned affiliate of Deutsche Bank AG, was the Advisor for
the Fund. Effective April 1, 2007, ICCC merged with DIMA. The Board of
the Fund approved a new Investment Management Agreement between
the Fund and DIMA. The new Investment Management Agreement is
identical in substance to the previous Investment Management
Agreement for the Fund, except for the named investment advisor.
Pursuant to a written contract with the Advisor, Alex. Brown Investment
Management, LLC ("ABIM") serves as subadvisor and is responsible for
the day to day management of the Fund. The Advisor compensates ABIM
out of the management fee it receives from the Fund.

Management Agreement. Under the Investment Management
Agreement with DIMA, the Advisor directs the investments of the Fund in
accordance with its investment objectives, policies and restrictions. The
Advisor determines the securities, instruments and other contracts
relating to investments to be purchased, sold, or entered into by the Fund
or delegates such responsibility to the Fund's subadvisor. Pursuant to the
Investment Management Agreement with the Advisor, the Fund pays an
annual fee based on its average daily net assets which is calculated daily
and payable monthly at the following annual rates:

|First $100 million of the Fund's average daily net assets | 1.00%
|--------------------------------------------------------- | -----
|Next $100 million of such net assets                      | .90% 
|Next $100 million of such net assets                      | .85% 
|Next $200 million of such net assets                      | .80% 
|Next $500 million of such net assets                      | .73% 
|Next $500 million of such net assets                      | .68% 
|Over $1.5 billion of such net assets                      | .65% 

Accordingly, for the year ended December 31, 2007, the fee pursuant to
the Investment Management Agreement was equivalent to an annual
effective rate of 0.90% of the Fund's average daily net assets.

For the period from January 1, 2007 through September 30, 2007, the
Advisor had contractually agreed to waive all or a portion of its
management fee and reimburse or pay certain operating expenses of the
Fund (excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest, proxy and organizational and offering expenses) to the
extent necessary to maintain the annual expenses of each class as
follows:

|Class A             | 1.72%
|------------------- | -----
|Class B             | 2.47%
|Class C             | 2.47%
|Institutional Class | 1.47%

For the period from October 1, 2007 through September 30, 2008, the
Advisor has contractually agreed to waive all or a portion of its
management fee and pay certain operating expenses of the Fund
(excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest, proxy, and organizational and offering expenses) to
the extent necessary to maintain the operating expenses of 2.50% for
Class B.

In addition, for the period from January 1, 2007 through September 30,
2008, the Advisor has voluntarily agreed to waive all or a portion of its
management fee and reimburse or pay certain operating expenses of the
Fund (excluding certain expenses such as extraordinary expenses, taxes,
brokerage, interest, proxy and organizational and offering expenses) to the
extent necessary to maintain the annual expenses of each class as
follows:

|Class A             | 1.43%
|------------------- | -----
|Class B             | 2.18%
|Class C             | 2.18%
|Institutional Class | 1.18%

Administration Fee. Pursuant to an Administrative Services Agreement,
DIMA provides most administrative services to the Fund. For all services
provided under the Administrative Services Agreement, the Fund pays the
Advisor an annual fee ("Administration Fee") of 0.10% of the Fund's
average daily net assets, computed and accrued daily and payable
monthly. For the year ended December 31, 2007, the Advisor received an
Administration Fee of $355,796, of which $25,444 is unpaid.

Service Provider Fees. DWS Scudder Investments Service Company
("DWS-SISC"), an affiliate of the Advisor, is the transfer agent,
dividend-paying agent and shareholder service agent of the Fund.
Pursuant to a sub-transfer agency agreement among DWS-SISC and DST
Systems, Inc. ("DST"), DWS-SISC has delegated certain transfer agent,
dividend-paying agent and shareholder service agent functions to DST.
DWS-SISC compensates DST out of the shareholder servicing fee they
receive from the Fund. For the year ended December 31, 2007, the
amounts charged to the Fund by DWS-SISC were as follows:

|Services to Shareholders | Total
Aggregated | Waived          | Unpaid at
December 31,
2007
|------------------------ | ---------------- | --------------- | ---------------------------
|Class A                  | $       471,943  | $       176,619 | $       101,219            
|Class B                  | 40,457           | 32,620          | 8,233                      
|Class C                  | 33,442           | 25,440          | 4,686                      
|Institutional Class      | 302              |                | 280                        
|                         | $    546,144     | $    234,679    | $    114,418               

Distribution and Service Fees. Under the Fund's Class B and Class C
12b-1 Plans, DWS Scudder Distributors, Inc. ("DWS-SDI"), an affiliate of
the Advisor, receives a fee ("Distribution Fee") of 0.75% of average daily
net assets of the Class B and C shares of the Fund. In accordance with
the Fund's Underwriting and Distribution Services Agreement, DWS-SDI
enters into related selling group agreements with various firms at various
rates for sales of Class B and C shares. For the year ended December 31,
2007, the Distribution Fee was as follows:

|Distribution Fee | Total
Aggregated | Unpaid at
December 31,
2007
|---------------- | ---------------- | ---------------------------
|Class B          | $       52,470   | $       3,747              
|Class C          | 101,686          | 7,374                      
|                 | $    154,156     | $    11,121                

In addition, DWS-SDI provides information and administrative services for
a fee ("Servicing Fee") to Class A, B and C shareholders at an annual rate
of up to 0.25% of average daily net assets for each such class. DWS-SDI
in turn has various agreements with financial services firms that provide
these services and pays these fees based upon the assets of shareholder
accounts the firms service. For the year ended December 31, 2007, the
Service Fee was as follows:

|Service Fee | Total
Aggregated | Unpaid at
December 31,
2007 | Annual
Effective Rate
|----------- | ---------------- | --------------------------- | ---------------------
|Class A     | $       777,509  | $       118,088             | .24%                 
|Class B     | 17,005           | 3,699                       | .24%                 
|Class C     | 32,635           | 4,703                       | .24%                 
|            | $    827,149     | $    126,490                |                      

Underwriting Agreement and Contingent Deferred Sales Charge.
DWS-SDI is the principal underwriter for the Fund. Underwriting
commissions paid in connection with the distribution of Class A shares for
the year ended December 31, 2007 aggregated $18,617.

In addition, DWS-SDI receives any contingent deferred sales charge
("CDSC") from Class B share redemptions occurring within six years of
purchase and Class C share redemptions occurring within one year of
purchase. There is no such charge upon redemption of any share
appreciation or reinvested dividends. The CDSC is based on declining
rates ranging from 4% to 1% for Class B and 1% for Class C, of the value
of the shares redeemed. For the year ended December 31, 2007, the
CDSC for Class B and C shares aggregated $12,287 and $1,123,
respectively. A deferred sales charge of up to 1.00% is assessed on
certain redemptions of Class A shares. For the year ended December 31,
2007, DWS-SDI received $114 for Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA,
DIMA is compensated for providing typesetting and certain regulatory
filing services to the Fund. For the year ended December 31, 2007, the
amount charged to the Fund by DIMA included in the Statement of
Operations under "reports to shareholders" aggregated $26,646, of
which $8,692 is unpaid.

Directors' Fees and Expenses. As compensation for his or her services,
each Independent Director receives an aggregated annual fee, plus a fee
for each meeting attended (plus reimbursement for reasonable
out-of-pocket expenses incurred in connection with his or her attendance
at board and committee meetings) from each fund in the Fund Complex
for which he or she serves. In addition, the Chairperson of the Board and
the Chairperson of each committee of the Board receive additional
compensation for their services. Payment of such fees and expenses is
allocated among all such Funds described above in direct proportion to
their relative net assets.

Cash Management QP Trust.Pursuant to an Exemptive Order issued by
the SEC, the Fund may invest in the Cash Management QP Trust (the
"QP Trust") and other affiliated funds managed by the Advisor. The QP
Trust seeks to provide as high a level of income as is consistent with the
preservation of capital and the maintenance of liquidity. The QP Trust does
not pay its Advisor a management fee for the affiliated funds' investments
in the QP Trust.

D. Fee Reductions

The Fund has entered into an arrangement with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances are
used to reduce a portion of the Fund's custodian expenses. During the
year ended December 31, 2007, the Fund's custodian fee was reduced by
$307 and $6,729, respectively, for custody and transfer agent credits
earned.

E. Line of Credit

The Fund and other affiliated funds (the "Participants") share in a $750 million
revolving credit facility administered by JPMorgan Chase Bank N.A. for
temporary or emergency purposes, including the meeting of redemption
requests that otherwise might require the untimely disposition of securities.
The Participants are charged an annual commitment fee which is allocated,
pro rata, based upon net assets, among each of the Participants. Interest is
calculated at the Federal Funds Rate plus 0.35 percent. The Fund may borrow
up to a maximum of 10 percent of its net assets under this agreement.

F. Share Transactions

The following table summarizes share and dollar activity in the Fund:

|                        | Year Ended December 31, 2007 | Year Ended December 31, 2006
|----------------------- | ---------------------------- | ----------------------------
|                        | Shares                       | Dollars                     
|Shares sold            
|Class A                 | 1,879,565                    | $       49,842,172          
|Class B                 | 59,701                       | 1,403,001                   
|Class C                 | 102,891                      | 2,454,353                   
|Institutional Class     | 46,821                       | 1,244,221                   
|                        |                              | $    54,943,747             
|Shares redeemed        
|Class A                 | (4,367,666)                  | $       (110,207,665)       
|Class B                 | (289,451)                    | (6,664,698)                 
|Class C                 | (194,264)                    | (4,493,745)                 
|Institutional Class     | (5,546)                      | (155,439)                   
|                        |                              | $    (121,521,547)          
|Redemption fees         | $    23,681                  |                             
|Net increase (decrease)
|Class A                 | (2,488,101)                  | $       (60,345,342)        
|Class B                 | (229,750)                    | (5,258,194)                 
|Class C                 | (91,373)                     | (2,039,365)                 
|Institutional Class     | 41,275                       | 1,088,782                   
|                        |                              | $    (66,554,119)           

Report of Independent Registered
Public Accounting Firm

To the Board of Directors and Shareholders ofDWSCommunications Fund, Inc.

In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of DWS
Communications Fund, Inc. (the "Fund") at December 31, 2007, and the
results of its operations, the changes in its net assets and the financial
highlights for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 2007by correspondence with the custodian and brokers,
provide a reasonable basis for our opinion.

|Boston, Massachusetts
February 25, 2008 | PricewaterhouseCoopers LLP
|--------------------------------------- | --------------------------

Tax Information(Unaudited)

Please consult a tax advisor if you have questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have
specific questions about your account, please call (800) 621-1048.

Investment Management Agreement
Approval

The Fund's Directors approved the continuation of the Fund's current
investment management agreement with DIMA and sub-advisory
agreement between DIMA and Alex. Brown Investment Management,
LLC ("ABIM") in September 2007.

In terms of the process that the Directors followed prior to approving the
agreements, shareholders should know that:

At the present time, all but one of your Fund's Directors are
independent of DIMA and its affiliates.

The Directors meet frequently to discuss fund matters. Each year, the
Directors dedicate part or all of several meetings to contract review
matters. In connection with reviewing the Fund's investment
management agreement, the Directors also review the terms of the
Fund's Rule 12b-1 plan, distribution agreement, administration
agreement, transfer agency agreement and other material service
agreements.

In connection with the Board's 2007 contract review, the Board
formed a special committee to facilitate careful review of the funds'
contractual arrangements. After reviewing the Fund's arrangements,
that committee recommended that the Board vote to approve the
continuation of the Fund's investment management agreement and
sub-advisory agreement.

The Directors regularly meet privately with their independent counsel
to discuss contract review and other matters. In addition, the
Directors were also advised by two consultants, including the Fund's
independent fee consultant, in the course of their 2007 review of
the Fund's contractual arrangements. In particular, the Directors
considered the report prepared by the independent fee consultant in
connection with their deliberations.

The sub-advisory fee paid to ABIM is paid by DIMA out of its fee and
not directly by the Fund.

The Directors believe that a long-term relationship with a capable,
conscientious advisor is in the best interest of shareholders. As you may
know, DIMA is part of Deutsche Bank, a major global banking institution
that is engaged in a wide range of financial services. The Directors believe
that there are significant advantages to being part of a global asset
management business that offers a wide range of investing expertise
and resources, including hundreds of portfolio managers and analysts
with research capabilities in many countries throughout the world.

Shareholders may focus primarily on fund performance and fees, but the
Fund's Directors consider these and many other factors, including the
quality and integrity of DIMA's and ABIM's personnel and such other
issues as back-office operations, fund valuations, and compliance policies
and procedures.

In determining to approve the continuation of the Fund's current
investment management agreement and sub-advisory agreement, the
Board considered all factors that it believes relevant to the interests of
Fund shareholders, including:

The investment management fee schedule for the Fund, including
(i) comparative information provided by Lipper regarding investment
management fee rates paid to other investment advisors by similar
funds and (ii) fee rates paid to DIMA by similar funds and
institutional accounts advised by DIMA (if any).With respect to
management fees paid to other investment advisors by similar funds,
the Directors noted that the contractual fee rates paid by the Fund
were higher than the median (3rd quartile) of the applicable Lipper
peer group (based on Lipper data provided as of December 31, 2006).
The Board gave a lesser weight to fees paid by similar institutional
accounts advised by DIMA, in light of the material differences in the
scope of services provided to mutual funds as compared to those
provided to institutional accounts. Taking into account the foregoing,
the Board concluded that the fee schedule in effect for the Fund
represents reasonable compensation in light of the nature, extent and
quality of the investment services being provided to the Fund.

The extent to which economies of scale would be realized as the
Fund grows.In this regard, the Board noted that the Fund's
investment management fee schedule includes fee breakpoints.
The Board concluded that the Fund's fee schedule represents an
appropriate sharing between Fund shareholders and DIMA of such
economies of scale as may exist in the management of the Fund at
current asset levels.

The total operating expenses of the Fund.In this regard, the Board
noted that the total (net) operating expenses of the Fund (Class A
shares) are expected to be higher than the median (3rd quartile) of the
applicable Lipper expense universe (based on Lipper data provided as
of December 31, 2006, and in each case analyzing Class A expenses
less any applicable distribution and/or service plan expenses). The
Board considered the expenses of this class to be representative for
purposes of evaluating other classes of shares. The Board also
considered how the Fund's total (net) operating expenses compared to
the total (net) operating expenses of a more customized peer group
selected by Lipper (based on such factors as asset size). The Board
also noted that the expense limitation agreed to by DIMA helped to
ensure that the Fund's total (net) operating expenses would be
competitive relative to the applicable Lipper universe.

The investment performance of the Fund and DIMA, both absolute
and relative to various benchmarks and industry peer groups.The
Board noted that for the one-, three- and five-year periods ended
December 31, 2006, the Fund's performance (Class A shares) was in
the 3rd quartile, 2nd quartile and 3rd quartile, respectively, of the
applicable Lipper universe. The Board also observed that the Fund has
outperformed its benchmark in the one- and three-year periods ended
December 31, 2006 and has underperformed its benchmark in the
five-year period ended December 31, 2006. The Board recognized that
DIMA has made significant changes in its investment personnel and
processes in recent years in an effort to improve long-term
performance.

The nature, extent and quality of the advisory services provided by
DIMA and ABIM.The Board considered extensive information
regarding DIMA, including DIMA's personnel (including particularly
those personnel with responsibilities for providing services to the
Fund), resources, policies and investment processes. The Board also
considered the terms of the current investment management
agreement and the sub-advisory agreements, including the scope of
services provided under the agreements. In this regard, the Board
concluded that the quality and range of services provided by DIMA and
ABIM have benefited and should continue to benefit the Fund and its
shareholders.

The costs of the services to, and profits realized by, DIMA and its
affiliates from their relationships with the Fund.The Board reviewed
information concerning the costs incurred and profits realized by DIMA
during 2006 from providing investment management services to the
Fund (and, separately, to the entire DWS Scudder fund complex), and
reviewed with DIMA the cost allocation methodology used to
determine DIMA's profitability. In analyzing DIMA's costs and profits,
the Board also reviewed the fees paid to and services provided by
DIMA and its affiliates with respect to administrative services, transfer
agent services, shareholder servicing and distribution (including fees
paid pursuant to 12b-1 plans), as well as information regarding other
possible benefits derived by DIMA and its affiliates as a result of
DIMA's relationship with the Fund. As part of this review, the Board
considered information provided by an independent accounting firm
engaged to review DIMA's cost allocation methodology and
calculations. The Board concluded that the Fund's investment
management fee schedule represented reasonable compensation in
light of the costs incurred by DIMA and its affiliates in providing
services to the Fund. The Board also reviewed information regarding
the profitability of certain similar investment management firms. The
Board noted that while information regarding the profitability of such
firms is limited (and in some cases is not necessarily prepared on a
comparable basis), DIMA and its affiliates' overall profitability with
respect to the DWS Scudder fund complex (after taking into account
distribution and other services provided to the funds by DIMA and its
affiliates) was lower than the overall profitability levels of many
comparable firms for which such data was available.

The practices of DIMA and ABIM regarding the selection and
compensation of brokers and dealers executing portfolio
transactions for the Fund.The Board considered that a portion of
the Fund's brokerage may be allocated to affiliates of DIMA or ABIM,
subject to compliance with applicable SEC rules. The Board also
considered that subject to ongoing review by the Board, a limited
portion of the Fund's brokerage may be allocated to brokers who
acquire (and provide to DIMA and its affiliates) research services from
third parties that are generally useful to DIMA and its affiliates in
managing client portfolios. The Board indicated that it would continue
to monitor the allocation of the Fund's brokerage to ensure that the
principle of "best price and execution" remains paramount in the
portfolio trading process.

DIMA's commitment to and record of compliance, including its
written compliance policies and procedures.In this regard, the Board
considered DIMA's commitment to indemnify the Fund against any
costs and liabilities related to lawsuits or regulatory actions arising
from allegations regarding market timing, revenue sharing, fund
valuation or other subjects arising from or relating to pending
regulatory inquiries. The Board also considered the significant attention
and resources dedicated by DIMA to documenting and enhancing its
compliance processes in recent years. The Board noted in particular
(i) the experience and seniority of DIMA's chief compliance officer;
(ii) the large number of compliance personnel who report to DIMA's
chief compliance officer; and (iii) the substantial commitment of
resources by DIMA and its affiliates to compliance matters.

Deutsche Bank's commitment to its US mutual fund business.The
Board considered recent and ongoing efforts by Deutsche Bank to
restructure its US mutual fund business to improve efficiency and
competitiveness and to reduce compliance and operational risk. The
Board considered assurances received from Deutsche Bank that it
would commit the resources necessary to maintain high-quality
services to the Fund and its shareholders. The Board also considered
Deutsche Bank's strategic plans for its US mutual fund business, the
potential benefits to Fund shareholders and Deutsche Bank's
management of one of Europe's most successful fund groups.

Based on all of the foregoing, the Board determined to continue the
Fund's current investment management agreement and the sub-advisory
agreements, and concluded that the continuation of such agreements
was in the best interests of the Fund's shareholders.

In reaching this conclusion the Board did not give particular weight to any
single factor identified above. The Board considered these factors over the
course of numerous meetings, many of which were in executive session
with only the Independent Directors and their counsel present. It is
possible that individual Directors may have weighed these factors
differently in reaching their individual decisions to approve the
continuation of the current agreements.

Summary of Management Fee Evaluation
by Independent Fee Consultant

October 26, 2007

Pursuant to an Order entered into by Deutsche Investment Management
Americas and affiliates (collectively, "DeAM") with the Attorney General
of New York, I, Thomas H. Mack, have been appointed the Independent
Fee Consultant for the DWS Scudder Funds. My duties include preparing
an annual written evaluation of the management fees DeAM charges the
Funds, considering among other factors the management fees charged by
other mutual fund companies for like services, management fees DeAM
charges other clients for like services, DeAM's costs of supplying services
under the management agreements and related profit margins, possible
economies of scale if a Fund grows larger, and the nature and quality of
DeAM's services, including fund performance. This report summarizes my
evaluation for 2007, including my qualifications, the evaluation process for
each of the DWS Scudder Funds, consideration of certain complex-level
factors, and my conclusions.

Qualifications

For more than 30 years I have served in various professional capacities
within the investment management business. I have held investment
analysis and advisory positions, including securities analyst, portfolio
strategist and director of investment policy with a large investment firm. I
have also performed business management functions, including business
development, financial management and marketing research and analysis.

Since 1991, I have been an independent consultant within the asset
management industry. I have provided services to over 125 client
organizations, including investment managers, mutual fund boards,
product distributors and related organizations. Over the past several years
I have completed a number of assignments for mutual fund boards,
specifically including assisting boards with management contract renewal.

I hold a Master of Business Administration degree, with highest honors,
from Harvard University; and Master of Science and Bachelor of Science
(highest honors) degrees from the University of California at Berkeley. I
am an independent director and audit committee financial expert for two
closed-end mutual funds, serve on the board of directors of a private
market research company, and have served in various leadership and
financial oversight capacities with non-profit organizations.

Evaluation of Fees for each DWS Scudder Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged
to each of the 136 Fund portfolios in the DWS Scudder Fund family. For
each Fund, I considered each of the key factors mentioned above, as well
as any other relevant information. In doing so I worked closely with the
Funds' Independent Directors in their annual contract renewal process, as
well as in their approval of contracts for several new funds (documented
separately).

In evaluating each Fund's fees, I reviewed comprehensive materials
provided by or on behalf of DeAM, including expense information
prepared by Lipper Analytical, comparative performance information,
profitability data, manager histories, and other materials. I also accessed
certain additional information from the Lipper, Strategic Insight, and
Morningstar databases and drew on my industry knowledge and
experience.

To facilitate evaluating this considerable body of information, I prepared
for each Fund a document summarizing the key data elements in each
area as well as additional analytics discussed below. This made it possible
to consider each key data element in the context of the others.

In the course of contract renewal, DeAM agreed to implement a number
of fee and expense adjustments requested by the Independent Directors
which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes.

Fees and Expenses Compared with Other Funds

The competitive fee and expense evaluation for each fund focused on two
primary comparisons:

The Fund's contractual management fee (the advisory fee plus the
administration fee where applicable) compared with those of a group of
typically 12-15 funds in the same Lipper investment category (e.g.
Large Capitalization Growth) having similar distribution arrangements
and being of similar size.

The Fund's total expenses compared with a broader universe of funds
from the same Lipper investment category and having similar
distribution arrangements.

These two comparisons provide a view of not only the level of the fee
compared with funds of similar scale but also the total expense the Fund
bears for all the services it receives, in comparison with the investment
choices available in the Fund's investment category and distribution
channel. The principal figure-of-merit used in these comparisons was the
subject Fund's percentile ranking against peers.

DeAM's Fees for Similar Services to Others

DeAM provided management fee schedules for all of its US domiciled
fund and non-fund investment management accounts in any of the
investment categories where there is a DWS Scudder Fund. These similar
products included the other DWS Scudder Funds, non-fund pooled
accounts, institutional accounts and sub-advisory accounts. Using this
information, I calculated for each Fund the fee that would be charged to
each similar product, at the subject Fund's asset level.

Evaluating information regarding non-fund products is difficult because
there are varying levels of services required for different types of
accounts, with mutual funds generally requiring considerably more
regulatory and administrative types of service as well as having more
frequent cash flows than other types of accounts. Also, while mutual fund
fees for similar fund products can be expected to be similar, there will be
some differences due to different pricing conditions in different
distribution channels (e.g. retail funds versus those used in variable
insurance products), differences in underlying investment processes and
other factors.

Costs and Profit Margins

DeAM provided a detailed profitability analysis for each Fund. After
making some adjustments so that the presentation would be more
comparable to the available industry figures, I reviewed profit margins
from investment management alone, from investment management plus
other fund services (excluding distribution) provided to the Funds by
DeAM (principally shareholder services), and DeAM profits from all
sources, including distribution. A later section comments on overall
profitability.

Economies of Scale

Economies of scale  an expected decline in management cost per dollar
of fund assets as fund assets grow  are very rarely quantified and
documented because of inherent difficulties in collecting and analyzing
relevant data. However, in virtually every investment category that I
reviewed, larger funds tend to have lower fees and lower total expenses
than smaller funds. To see how each DWS Scudder Fund compares with
this industry observation, I reviewed:

The trend in Fund assets over the last five years and the accompanying
trend in total expenses. This shows if the Fund has grown and, if so,
whether total expense (management fees as well as other expenses)
have declined as a percent of assets.

Whether the Fund has break-points in its management fee schedule,
the extent of the fee reduction built into the schedule and the asset
levels where the breaks take effect, and in the case of a sub-advised
Fund how the Fund's break-points compare with those of the
sub-advisory fee schedule.

How the Fund's contractual fee schedule compares with trends in the
industry data. To accomplish this, I constructed a chart showing how
actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund's contractual
fee schedule superimposed.

Quality of Service  Performance

The quality-of-service evaluation focused on investment performance,
which is the principal result of the investment management service. Each
Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as
applicable, and compared with that of other funds in the same investment
category and with a suitable market index.

In addition, I calculated and reviewed risk-adjusted returns relative to an
index of similar mutual funds' returns and a suitable market index. The
risk-adjusted returns analysis provides a way of determining the extent to
which the Fund's return comparisons are mainly the product of investment
value-added (or lack thereof) or alternatively taking considerably more or
less risk than is typical in its investment category.

I also received and considered the history of portfolio manager changes
for each Fund, as this provided an important context for evaluating the
performance results.

Complex-Level Considerations

While this evaluation was conducted mainly at the individual fund level,
there are some issues relating to the reasonableness of fees that can
alternatively be considered across the whole fund complex:

I reviewed DeAM's profitability analysis for all DWS Scudder funds,
with a view toward determining if the allocation procedures used were
reasonable and how profit levels compared with public data for other
investment managers.

I considered whether DeAM and affiliates receive any significant
ancillary or "fall-out" benefits that should be considered in interpreting
the direct profitability results. These would be situations where serving
as the investment manager of the Funds is beneficial to another part of
the Deutsche Bank organization.

I considered how aggregated DWS Scudder Fund expenses had varied
over the years, by asset class and in the context of trends in asset
levels.

I reviewed the structure of the DeAM organization, trends in staffing
levels, and information on compensation of investment management
and other professionals compared with industry data.

Findings

Based on the process and analysis discussed above, which included
reviewing a wide range of information from management and external
data sources and considering among other factors the fees DeAM
charges other clients, the fees charged by other fund managers, DeAM's
costs and profits associated with managing the Funds, economies of
scale, possible fall-out benefits, and the nature and quality of services
provided, in my opinion the management fees charged the DWS Scudder
Funds are reasonable.

cf_m0Thomas H. Mack

Directors and Officers

The following table presents certain information regarding the Board
Members and Officers of the Trust as of December 31, 2007. Each Board
Member's year of birth is set forth in parentheses after his or her name.
Unless otherwise noted, (i) each Board Member has engaged in the
principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity, and (ii) the address
of each Independent Board Member is c/o Dawn-Marie Driscoll, PO Box
100176, Cape Coral, FL 33904. Except as otherwise noted below, the term
of office for each Board Member is until the election and qualification of a
successor, or until such Board Member sooner dies, resigns, is removed
or as otherwise provided in the governing documents of the fund.
Because the fund does not hold an annual meeting of shareholders, each
Board Member will hold office for an indeterminate period. The Board
Members may also serve in similar capacities with other funds in the fund
complex.

|Independent Board Members                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|----------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served   | Business Experience and Directorships During the
Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Dawn-Marie
Driscoll (1946)Chairperson
since 2006Board Member
since 2006 | President, Driscoll Associates (consulting firm); Executive
Fellow, Center for Business Ethics, Bentley College;
formerly, Partner, Palmer & Dodge (1988-1990); Vice
President of Corporate Affairs and General Counsel, Filene's
(1978-1988). Directorships: Trustee of eight open-end
mutual funds managed by Sun Capital Advisers, Inc. (since
2007); Director of ICI Mutual Insurance Company (since
2007); Advisory Board, Center for Business Ethics, Bentley
College; Trustee, Southwest Florida Community Foundation
(charitable organization). Former Directorships: Investment
Company Institute (audit, executive, nominating committees)
and Independent Directors Council (governance, executive
committees)
|Henry P. Becton,
Jr. (1943)Board Member
since 2006                      | Vice Chair, WGBH Educational Foundation. Directorships:
Association of Public Television Stations; Becton Dickinson
and Company1 (medical technology company); Belo
Corporation1 (media company); Boston Museum of Science;
Public Radio International. Former Directorships: American
Public Television; Concord Academy; New England
Aquarium; Mass. Corporation for Educational
Telecommunications; Committee for Economic
Development; Public Broadcasting Service                                                                                                                                                                                                                                                   
|Keith R. Fox
(1954)Board Member
since 2006                              | Managing General Partner, Exeter Capital Partners (a series
of private equity funds). Directorships: Progressive Holding
Corporation (kitchen goods importer and distributor); Natural
History, Inc. (magazine publisher); Box Top Media Inc.
(advertising); The Kennel Shop (retailer)                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Kenneth C.
Froewiss (1945)Board Member
since 2006                       | Clinical Professor of Finance, NYU Stern School of Business
(1997-present); Member, Finance Committee, Association
for Asian Studies (2002-present); Director, Mitsui Sumitomo
Insurance Group (US) (2004-present); prior thereto,
Managing Director, J.P. Morgan (investment banking firm)
(until 1996)                                                                                                                                                                                                                                                                                                                                                                                                                 
|Martin J. Gruber7
(1937)Board Member
since 1999                         | Nomura Professor of Finance, Leonard N. Stern School of
Business, New York University (since September 1965);
Director, Japan Equity Fund, Inc. (since January 1992), Thai
Capital Fund, Inc. (since January 2000), Singapore Fund, Inc.
(since January 2000), National Bureau of Economic Research
(since January 2006). Formerly, Trustee, TIAA (pension
funds) (January 1996-January 2000); Trustee, CREF and
CREF Mutual Funds (January 2000-March 2005); Chairman,
CREF and CREF Mutual Funds (February 2004-March 2005);
and Director, S.G. Cowen Mutual Funds (January
1985-January 2001)                                                                                                                         
|Richard J.
Herring (1946)Board Member
since 1999                        | Jacob Safra Professor of International Banking and
Professor, Finance Department, The Wharton School,
University of Pennsylvania (since July 1972); Co-Director,
Wharton Financial Institutions Center (since July 2000);
Director, Japan Equity Fund, Inc. (since September 2007),
Thai Capital Fund, Inc. (since September 2007), Singapore
Fund, Inc. (since September 2007). Formerly, Vice Dean and
Director, Wharton Undergraduate Division (July 1995-June
2000); Director, Lauder Institute of International
Management Studies (July 2000-June 2006)                                                                                                                                                            
|Graham E.
Jones7 (1933)Board Member
since 2002                          | Senior Vice President, BGK Realty, Inc. (commercial real
estate) (since 1995). Formerly, Trustee of various investment
companies managed by Sun Capital Advisors, Inc.
(1998-2005), Morgan Stanley Asset Management
(1985-2001) and Weiss, Peck and Greer (1985-2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Rebecca W.
Rimel (1951)Board Member
since 2002                          | President and Chief Executive Officer, The Pew Charitable
Trusts (charitable organization) (1994 to present); Trustee,
Thomas Jefferson Foundation (charitable organization)
(1994 to present); Trustee, Executive Committee,
Philadelphia Chamber of Commerce (2001 to present).
Formerly, Executive Vice President, The Glenmede Trust
Company (investment trust and wealth management)
(1983-2004); Board Member, Investor Education (charitable
organization) (2004-2005); Director, Viasys Health Care1
(January 2007-June 2007)                                                                                                                                                                                    
|William N.
Searcy, Jr. (1946)Board Member
since 2002                    | Private investor since October 2003; Trustee of eight
open-end mutual funds managed by Sun Capital Advisers,
Inc. (since October 1998). Formerly, Pension & Savings Trust
Officer, Sprint Corporation1 (telecommunications) (November
1989-September 2003)                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Jean Gleason
Stromberg (1943)Board Member
since 2006                    | Retired. Formerly, Consultant (1997-2001); Director, US
Government Accountability Office (1996-1997); Partner,
Fulbright & Jaworski, L.L.P. (law firm) (1978-1996).
Directorships: The William and Flora Hewlett Foundation;
Service Source, Inc. Former Directorships: Mutual Fund
Directors Forum (2002-2004), American Bar Retirement
Association (funding vehicle for retirement plans)
(1987-1990 and 1994-1996)                                                                                                                                                                                                                                                                                                    
|Carl W. Vogt7
(1936)Board Member
since 2006                             | Retired Senior Partner, Fulbright & Jaworski, L.L.P. (law
firm); formerly, President (interim) of Williams College
(1999-2000); formerly, President of certain funds in the
Deutsche Asset Management family of funds (formerly, Flag
Investors family of funds) (registered investment companies)
(1999-2000). Directorships: Yellow Corporation (trucking);
American Science & Engineering (x-ray detection
equipment). Former Directorships: ISI Family of Funds
(registered investment companies, four funds overseen);
National Railroad Passenger Corporation (Amtrak); Waste
Management, Inc. (solid waste disposal). Formerly, Chairman
and Member, National Transportation Safety Board                         

|Interested Board Member                                              
|---------------------------------------------------------------------
|Name, Year of
Birth, Position
with the Fund
and Length of
Time Served
|Axel Schwarzer2(1958)Board Member
since 2006                         

|Officers3                                                                           
|------------------------------------------------------------------------------------
|Name, Year of Birth,
Position with the Fund and
Length of Time Served               
|Michael G. Clark5 (1965)President, 2006-present                                     
|John Millette6 (1962)Vice President and Secretary,
2003-present                     
|Paul H. Schubert5 (1963)Chief Financial Officer,
2004-presentTreasurer, 2005-present
|Patricia DeFilippis5(1963)Assistant Secretary,
2005-present                         
|Elisa D. Metzger5 (1962)Assistant Secretary
2005-present                            
|Caroline Pearson6 (1962)Assistant Secretary,
2002-present                           
|Paul Antosca6 (1957)Assistant Treasurer,
2007-present                               
|Jack Clark6 (1967)Assistant Treasurer,
2007-present                                 
|Kathleen Sullivan D'Eramo6
(1957)Assistant Treasurer,
2003-present                  
|Diane Kenneally6(1966)Assistant Treasurer,
2007-present                             
|Jason Vazquez4 (1972)Anti-Money Laundering
Compliance Officer,
2007-present         
|Robert Kloby5 (1962)Chief Compliance Officer,
2006-present                          
|J. Christopher Jackson5
(1951)Chief Legal Officer,
2006-present                     

|Name and
Year of Birth
Chicago Board
Members to be
Elected to New
York Board | Business Experience and Directorships
During the Past 5 Years                                                                                                                                                                                                                                                                                                                                                                                                                                       | Position with
the DWS
Funds and
Length of
Time Served  
|---------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------
|John W. Ballantine
(1946)                                                    | Retired; formerly, Executive Vice President and Chief
Risk Management Officer, First Chicago NBD
Corporation/The First National Bank of Chicago
(1996-1998); Executive Vice President and Head of
International Banking (1995-1996). Directorships:
Healthways, Inc. (provider of disease and care
management services); Portland General Electric (utility
company); Stockwell Capital Investments PLC (private
equity). Former Directorships: First Oak Brook
Bancshares, Inc. and Oak Brook Bank | Chicago Board
Member
since 1999                        
|Paul K. Freeman
(1950)                                                       | Consultant, World Bank/Inter-American Development
Bank; formerly, Project Leader, International Institute
for Applied Systems Analysis (1998-2001); Chief
Executive Officer, The Eric Group, Inc. (environmental
insurance) (1986-1998). Formerly, Trustee of funds
managed by DIMA or its affiliates (1993-2002).                                                                                                                                                                                  | Chicago Board
Member
since 2002,
Chairperson
since 2007
|William McClayton
(1944)                                                     | Chief Administrative Officer, Diamond Management &
Technology Consultants, Inc. (global management
consulting firm) (2001-present); formerly, Senior
Partner, Arthur Andersen LLP (accounting) (1966-2001).
Directorship: Board of Managers, YMCA of
Metropolitan Chicago. Formerly, Trustee, Ravinia
Festival.                                                                                                                                                                                     | Chicago Board
Member
since 2004                        
|Robert H.
Wadsworth(1940)                                                    | President, Robert H. Wadsworth & Associates, Inc.
(consulting firm) (1983 to present). Formerly, Trustee of
funds managed by DIMA or its affiliates (1999-2004).                                                                                                                                                                                                                                                                                                                                    | Chicago Board
Member
since 2004                        

The fund's Statement of Additional Information ("SAI") includes additional information about
the Board Members. The SAI is available, without charge, upon request. If you would like to
request a copy of the SAI, you may do so by calling the following toll-free number:
(800) 621-1048.

Account Management Resources

|                      
|----------------------
|For More
Information  
|Web Site              
|Written
Correspondence
|Proxy Voting          
|Principal
Underwriter 

|              | Class A    | Class B    | Class C    | Institutional
Class
|------------- | ---------- | ---------- | ---------- | -------------------
|Nasdaq Symbol | TISHX      | FTEBX      | FTICX      | FLICX              
|CUSIP Number  | 23339G 108 | 23339G 207 | 23339G 306 | 23339G 405         
|Fund Number   | 432        | 632        | 732        | 532                

Notes

Notes

Notes

Notes

cf_backcover0



ITEM 2.
        CODE OF ETHICSAs of the end of the period, December 31, 2007, DWS Communications Fund has a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Financial Officer.

There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.

A copy of the code of ethics is filed as an exhibit to this Form N-CSR.ITEM 3.
        AUDIT COMMITTEE FINANCIAL EXPERTThe Funds audit committee is comprised solely of trustees who are independent (as such term has been defined by the Securities and Exchange Commission (SEC) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the Regulations)). The Funds Board of Trustees has determined that there are several audit committee financial experts serving on the Funds audit committee. The Board has determined that Keith R Fox, the chair of the Funds audit committee, qualifies as an audit committee financial expert (as such term has been defined by the Regulations) based on its review of Mr. Foxs pertinent experience and education. The SEC has stated that the designation or identification of a person as an audit committee financial expert
pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.ITEM 4.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES


DWS COMMUNICATIONS FUND

FORM N-CSR DISCLOSURE RE: AUDIT FEES

The following table shows the amount of fees that PricewaterhouseCoopers, LLP (PWC), the Funds independent registered public accounting firm, billed to the Fund during the Funds last two fiscal years.  The Audit Committee approved in advance all audit services and non-audit services that PWC provided to the Fund.

The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).

Services that the Funds Independent Registered Public Accounting Firm Billed to the Fund

Fiscal YearEndedDecember 31,
        Audit Fees Billed to Fund
        Audit-RelatedFees Billed to Fund
        Tax Fees Billed to Fund
        AllOther Fees Billed to Fund2007
        $52,775
        $0
        $0
        $02006
        $54,500
        $128
        $0
        $0




The above Audit- Related Fees were billed for agreed upon procedures performed.





Services that the Funds Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers

The following table shows the amount of fees billed by PWC to Deutsche Investment Management Americas, Inc. (DeIM or the Adviser), and any entity controlling, controlled by or under common control with DeIM (Control Affiliate) that provides ongoing services to the Fund (Affiliated Fund Service Provider), for engagements directly related to the Funds operations and financial reporting, during the Funds last two fiscal years.

Fiscal YearDecember 31,
        Audit-RelatedFees Billedto Adviser and Affiliated Fund Service Providers
        Tax Fees Billed to Adviser and Affiliated Fund Service Providers
        AllOther Fees Billed to Adviser and Affiliated Fund Service Providers2007
        $58,500
        $25,000
        $02006
        $155,500
        $11,930
        $0




The Audit-Related Fees were billed for services in connection with the agreed-upon procedures related to fund mergers and additional costs related to annual audits and the above Tax Fees were billed in connection with tax consultation and agreed-upon procedures.

Non-Audit Services

The following table shows the amount of fees that PWC billed during the Funds last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PWC provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Funds operations and financial reporting. The Audit Committee requested and received information from PWC about any non-audit services that PWC rendered during the Funds last fiscal year to the Adviser and any Affiliated Fund Service Provider.  The Committee considered this information in evaluating PWCs independence.



Fiscal YearEndedDecember 31,
        TotalNon-Audit Fees Billed to Fund
(A)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B)
        Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C)
        Total of (A), (B)and (C)2007
        $0
        $25,000
        $600,000
        $625,0002006
        $0
        $11,930
        $0
        $11,930




All other engagement fees were billed for services provided by PWC for services related to consulting on an IT project.



ITEM 5.
        AUDIT COMMITTEE OF LISTED REGISTRANTS








Not ApplicableITEM 6.
        SCHEDULE OF INVESTMENTSNot ApplicableITEM 7.
        DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.ITEM 8.
        PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIESNot applicable.




ITEM 9.
        PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERSNot Applicable.




ITEM 10.
        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSThe Committee on Independent Trustees/Directors selects and nominates Independent Trustees/Directors. Fund shareholders may submit nominees that will be considered by the committee when a Board vacancy occurs. Submissions should be mailed to: c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33910.ITEM 11.
        CONTROLS AND PROCEDURES(a)          The Chief Executive and Financial Officers concluded that the Registrants Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.(b)          There have been no changes in the registrants internal control over financial reporting that occurred during the registrants last half-year (the registrants second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal controls over financial reporting.ITEM 12.
        EXHIBITS(a)(1)     Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.(a)(2)     Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.(b)         Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.










Form N-CSR Item F



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Registrant:
        DWS Communications Fund, Inc.




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        February 29, 2008






Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



Registrant:
        DWS Communications Fund, Inc.




By:
        /s/Michael G. Clark


Michael G. Clark


President



Date:
        February 29, 2008






By:
        /s/Paul Schubert


Paul Schubert


Chief Financial Officer and Treasurer



Date:
        February 29, 2008