SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

           PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934

        Date of Report (Date of earliest event reported) JANUARY 7, 1998
                               (OCTOBER 28, 1997)

                          TELSCAPE INTERNATIONAL, INC.
             (Exact name of registrant as specified in its Charter)


           TEXAS                  0-24622               75-2433637
(State or other jurisdiction   (Commission            (IRS Employer
      of incorporation)        File Number)         Identification No.)


    4636 SOUTHWEST FREEWAY, SUITE800, HOUSTON, TEXAS         77027
      (Address of principal executive offices)             (Zip code)

         Registrants telephone number, including area code (713)968-0968

               --------------------------------------------------
         (Former name of former address, if changed since last report.)

ITEM 5.   OTHER EVENTS

MARK VANCE V. TELSCAPE INTERNATIONAL, INC.

     As previously disclosed in the Company's 10-KSB for the period ended
 December 31, 1996, on or about January 17, 1997, Mark Vance ("Vance"), a former
 officer of Telscape International, Inc. (the "Company"), filed a lawsuit
 against the Company, styled Case No. 9-02268; Mark Vance v. Telscape
 International, Inc. in the 295th District Court of Harris County, Texas. Vance
 sought relief of $350,000 in damages plus pre-judgment and post-judgment
 interest. Vance alleged breach of contract, breach of fiduciary duty, breach of
 a duty of good faith and fair dealing and fraud in connection with the
 termination of his employment with the Company which occurred on January 10,
 1997.

     On December 23, 1997, the Company and Vance entered into a Mutual Release
("Release") releasing any and all claims that the Vance had brought or may bring
against the Company in connection with his employment as well as any
securities-related claims. Pursuant to the terms of the Release, the Company
paid Vance $40,000 in cash. The parties have filed a joint motion for dismissal
with the court.

CHARLES CLAPPSADDLE AND TELECOM CONSULTING SERVICE, INC. V.
TELSCAPE INTERNATIONAL, INC. AND E. SCOTT CRIST

     On or about November 25, 1997, a lawsuit was filed against the Company and
E. Scott Crist, Chief Executive Officer and a Director of the Company. The
lawsuit is styled case number CIV 97 1504 BB; Charles Clappsaddle and Telecom
Consulting Service, Inc. v. Telscape International, Inc. and E. Scott Crist and
has been brought in the United States District Court in the District of New
Mexico. The plaintiffs are seeking a declaratory judgment with respect to option
rights allegedly held by plaintiffs. In a ddition, the plaintiffs are seeking
claims of relief for unjust enrichment, breach of an agreement, federal
securities fraud, Texas blue sky securities fraud, fraud in a stock transaction
and common law fraud. Plaintiffs are seeking actual damages in excess of
$250,000 and consequential damages, exemplary and punitive damages and attorney
fees.

     The Company and E. Scott Crist deny these allegations and intend to
vigorously defend against these allegations, although there can be no assurance
as to the successful defense of this matter. In addition, whether or not the
Company were to prevail in this litigation, such litigation is time consuming
and costly.

ROBERT E. CHAMBERLAIN, JR. V. TELSCAPE INTERNATIONAL, INC.
AND E. SCOTT CRIST

     On or about October 28, 1997, a lawsuit was filed against the Company and
Mr. Crist. The lawsuit is styled case number 97-53582. Robert Chamberlain, Jr.
v. Telscape International, Inc. and E. Scott Crist and is pending in the 270th
Judicial District of Harris County, Texas.. As to the Company, plaintiffs allege
breach of contract, fraud, fraudulent concealment, violation of Texas blue sky
law and violation of Texas Business and Commercial Code. As to Mr. Crist,
plaintiffs allege tortious interference, fraud, fraudulent concealment,
violation of Texas blue sky law and violation of Texas Business and Commercial
Code. Plaintiffs are seeking actual damages in excess of $800,000, exemplary and
punitive damages and attorneys fees.

     The Company and Mr. Crist deny these allegations and intend to vigorously
defend against these allegations, although there can be no assurance as to the
successful defense of this matter. In addition, whether or not the Company were
to prevail in this litigation, such litigation is time consuming and costly.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                   TELSCAPE INTERNATIONAL, INC.
                                   (Registrant)

January 7, 1998                    /S/  TODD M. BINET
                                   Todd M. Binet
                                   Principal Financial and Accounting Officer