UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-03883

DWS Communications Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  12/31

Date of reporting period: 3/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of March 31, 2009  (Unaudited)** |
|----------------------|---------------------------------------|

 

 

**DWS Communications Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **Value ($)** |
|--------|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 98.1%** |  
**Media 1.3%**

 
Net Servicos de Comunicacao SA (ADR) (Preferred) (a) 

 

176,200 

 

**1,277,450**

**National Carriers 37.4%**

 
Atlantic Tele-Network, Inc.  

 

18,125 

 

347,638 

BCE, Inc.  

 

47,100 

 

938,414 

BT Group PLC  

 

1,464,387 

 

1,638,566 

Comstar United Telesystems OJSC (GDR)*  

 

923,591 

 

3,094,030 

Deutsche Telekom AG (Registered)  

 

207,400 

 

2,580,126 

Elisa Oyj  

 

139,700 

 

2,033,637 

Hellenic Telecommunications Organization SA  

 

136,600 

 

2,050,457 

Maxcom Telecomunicaciones SAB de CV (ADR)* (a) 

 

330,000 

 

742,500 

Qwest Communications International, Inc. (a) 

 

700,800 

 

2,396,736 

 

 

 

Telecom Italia SpA  

 

1,899,600 

 

2,438,309 

Telefonica SA  

 

385,556 

 

7,700,330 

Telekom Austria AG  

 

262,900 

 

3,972,970 

Telenor ASA  

 

653,400 

 

3,747,485 

Telstra Corp., Ltd.  

 

832,500 

 

1,858,628 

Turk Telekomunikasyon AS*  

 

571,300 

 

1,324,404 

 

**36,864,230**

**Semiconductors 2.2%**

 
Advanced Micro Devices, Inc.* (a) 

 

284,800 

 

868,640 

Broadcom Corp. "A"*  

 

44,000 

 

879,120 

Lam Research Corp.*  

 

19,900 

 

453,123 

 

**2,200,883**

**Specialty Services 15.7%**

 
Alcatel-Lucent (ADR)* (a) 

 

1,043,100 

 

1,940,166 

Arris Group, Inc.*  

 

115,700 

 

852,709 

Equinix, Inc.*  

 

17,600 

 

988,240****

Cbeyond, Inc.* (a) 

 

138,200 

 

2,602,306 

JDS Uniphase Corp.*  

 

224,400 

 

729,300 

Monster Worldwide, Inc.* (a) 

 

185,400 

 

1,511,010 

NeuStar, Inc. "A"*  

 

108,100 

 

1,810,675 

Tele2 AB "B"  

 

598,400 

 

5,049,740 

 

**15,484,146**

**Wireless Services 41.5%**

 
America Movil SAB de CV "L" (ADR)  

 

47,700 

 

1,291,716 

Clearwire Corp. "A"* (a) 

 

182,500 

 

939,875 

Leap Wireless International, Inc.* (a) 

 

119,500 

 

4,166,965 

Millicom International Cellular SA (a) 

 

81,600 

 

3,022,464 

NII Holdings, Inc.*  

 

107,400 

 

1,611,000 

Nokia Oyj (ADR)  

 

174,700 

 

2,038,749 

Orascom Telecom Holding SAE (GDR) REG S  

 

99,800 

 

2,229,316****

Sprint Nextel Corp.*  

 

2,278,200 

 

8,133,174 

Tim Participacoes SA (ADR) (Preferred)  

 

135,300 

 

1,680,426 

Turkcell Iletisim Hizmetleri AS (ADR) (a) 

 

252,100 

 

3,098,309 

Vimpel-Communications (ADR) (a) 

 

809,400 

 

5,293,476 

Virgin Mobile USA, Inc. "A"* (a) 

 

1,706,770 

 

2,201,733 

Vodafone Group PLC  

 

2,991,596 

 

5,226,327 

 

**40,933,530**

**Total Common Stocks** (Cost $147,633,067)

 

**96,760,239**

 

**Securities Lending Collateral 17.9%**

 
Daily Assets Fund Institutional, 0.78% (b) (c)(Cost $17,645,869)

 

 

17,645,869

 

**17,645,869**

 

**Cash Equivalents 1.5%**

 
Cash Management QP Trust, 0.53% (b) (Cost $1,431,433)

 

1,431,433 

 

**1,431,433**

 

**% of**

**Net Assets**

 

**Value ($)**

**Total Investment Portfolio** (Cost $166,710,369) †

117.5

 

**115,837,541**

**Other Assets and Liabilities, Net**

(17.5)

 

**(17,217,655)**

**Net Assets**

100.0

 

**98,619,886**

*For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.*

 

 

 

***

*Non-income producing security.*

*†*

*The cost for federal income tax purposes was $177,751,512.  At March 31, 2009, net unrealized depreciation for all securities based on tax cost was $61,913,971.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $4,804,625 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $66,718,596.*

*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at March 31, 2009 amounted to $17,123,991 which is 17.4% of net assets.*

*(b)*

*Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.*

*(c)*

*Represents collateral held in connection with securities lending.  Income earned by the Fund is net of borrower rebates.*

*ADR: American Depositary Receipt*

*GDR: Global Depositary Receipt*

*REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, US persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.*

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.*

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.*

*The following is a summary of the inputs used as of March 31, 2009 in valuing the Fund's investments.*

 

**Valuation Inputs**

**Investments in  Securities**

**Other**

**Receivable**

Level 1 

$                 69,461,783   

$                                 -   

Level 2 

46,375,758   

1,721,776   

Level 3 

-   

-   

**Total**

**$               115,837,541**

**$                  1,051,269**

 

**ITEM 2.**

**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 fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

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.

 

 

**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, a series of DWS Communications Fund, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

May 20, 2009

 

 

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, a series of DWS Communications Fund, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

May 20, 2009

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        May 20, 2009

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