SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC 20549
                               FORM 10 - QSB

                QUARTERLY REPORT UNDER REGULATION SB OF THE
                       SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended                        Commission File Number:
   June 30, 1998                                    2-96976-D
-----------------------                         ------------------

                      DCI TELECOMMUNICATIONS, INC.
       (Exact Name of Registrant as specified in its charter)

             COLORADO                            84-1155041
          ---------------                  -----------------------
   (State or other jurisdiction          (IRS Employer Identification
  of incorporation or organization)               Number)


           611 Access Road, Stratford, Connecticut  06615
     -------------------------------------------------------------
           (Address and zip code of principal executive offices)

                              (203) 380-0910
                            -----------------
           (Registrant's telephone number, including area code)

Indicate  by check mark whether the Registrant (1) has filed all  reports
required  by Regulation SB of the Securities Exchange Act of 1934  during
the  preceding 12 months (or for such shorter period that the  Registrant
was  required  to  file such reports), and (2) has been  subject  to  the
filing requirements for at least the past 90 days.
                      YES __X__              NO_____

Indicate the number of shares outstanding of each of the issuer/s classes
of common stock, as of the last practicable date:

Number of Shares Outstanding        Class               Date
----------------------------       -------           ----------
       21,277,689              Common Stock,        August 14, 1998
                              $.0001 par value

<PAGE>

                        DCI TELECOMMUNICATIONS, INC.

                                  Index


     PART I  FINANCIAL INFORMATION

       Balance Sheet June 30, 1998                                    3

       Statements of Operations
        Three Months Ended June 30, 1998 and 1997                     4

       Statements of Cash Flow
        Three Months Ended June 30, 1998 and 1997                     5

       Notes to Unaudited Financial Statements
        June 30, 1998                                                 6

       Management's Discussion and Analysis of
        Financial Condition and Results of Operations                 9

PART II
       Other Information                                              13

       Signatures                                                     15






                                  2

<PAGE>

                      DCI Telecommunications, Inc.
                       Consolidated Balance Sheet
                               (unaudited)

                                                          June 30
          ASSETS                                            1998

Current Assets:
    Cash                                                 $3,611,830
    Restricted cash                                          34,475
    Investments                                              45,632
    Accounts receivable                                   5,013,704
    Receivable from SmarTalk                                650,000
    Prepaid expenses                                        128,818
    Inventory                                               501,645
                                                          ---------
Total Current Assets                                      9,986,104

Fixed Assets                                              1,974,356
Less: Accumulated depreciation                             (239,222)
                                                          ---------
Net Fixed Assets                                          1,735,134
                                                          ---------
Accounts receivable                                         682,253
Deferred costs                                              271,938
Deposits                                                    113,188
Other investments                                            89,905
Other Assets
   -    costs in excess of
      net assets acquired:
     CardCall International                              3,987,523
     Muller Media                                        1,989,931
     CyberFax                                            1,033,975
                                                         ----------
                                                          7,011,429
Less: Accumulated amortization                              456,500
                                                         ----------
Net other assets                                          6,554,929
                                                         ----------
Total Assets                                            $19,433,451
                                                        ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
    Accounts payable and accrued expenses                $3,509,313
    Participations payable                                1,514,780
    Preferred stock dividend                                278,642
    Deferred Revenue                                        212,650
    Due to shareholders                                     200,370
    Income Taxes Payable                                    138,400
                                                         ----------
Total Current Liabilities                                 5,854,155

Participations payable                                      506,000
Long Term Debt                                              135,000
Deferred Income Taxes                                       367,810
Due to joint venture partner                                660,157
Redeemable, convertible preferred stock $10,000 and
  $1,000 par and redemption value, 2,000,000
  shares authorized, 3,019 shares issued and
  outstanding (3,000 shares at $1,000 par and 19
  shares at $10,000 par)                                  3,197,550
                                                          ---------
Total Liabilities                                        10,720,672
                                                         ----------
Minority interests                                           31,213

Commitments and Contingencies

Shareholders' Equity:
    9.25% cumulative convertible, preferred stock
      $100 par value, 5,000,000 shares authorized,
      3,972 shares issued and outstanding;                  305,000
    Common stock, $.0001 par value,
     500,000,000 shares authorized,
     20,598,678 shares issued and outstanding                 2,060
    Paid in capital                                      12,410,094
    Treasury Stock (1,155,000 shares at cost)            (4,104,379)
    Unrealized capital loss                                  (5,495)
    Currency translation adjustment                         (16,736)
    Retained earnings subsequent to 12/31/95, date of
       quasi-reorganization (total deficit
       eliminated $4,578,587)                                91,022
                                                          ---------
Total Shareholders' Equity                                8,681,566
                                                         ----------
Total Liabilities and Shareholders' Equity              $19,433,451
                                                        ===========

         See Accompanying Notes to Consolidated Financial Statements

                                    3
<PAGE>

                     DCI Telecommunications, Inc.
               Consolidated Statements of Operations
                               (unaudited)

                                                  Three Months Ended
                                                        June 30,
                                                    1998         1997
                                                    ----         ----
Sales - travel                                   $  331,062 $  298,413
Sales - products                                  5,974,240  3,897,372
                                                  --------- ----------
Net Sales                                         6,305,302  4,195,785

Cost of sales - travel                              284,894    281,033
Cost of sales - products                          5,093,677  3,211,291
                                                 ---------- ----------
Cost of sales                                     5,378,571  3,492,324

Gross profit                                        926,731    703,461

Selling, general and administration expenses        510,261    418,942
Salaries and compensation                           650,030    230,117
Professional and consulting fees                    357,253    106,115
Amortization and depreciation                       168,319     45,616
                                                  --------- ----------
                                                  1,685,863    800,790

Loss from operations                               (759,132)  (97,329)

Other income and (expense):
  Investment income                                  37,020    11,950
  Interest expense                                  (80,353)  (33,065)
                                                  --------- ---------
                                                    (43,333)  (21,115)

Loss from continuing operations before
  minority interest                                (802,465) (118,444)

Minority interest in earnings of subsidiary          (3,213)       --
                                                 ---------- ---------
Loss from continuing operations                    (805,678) (118,444)

Discontinued operations:
  Loss from operations, net of tax:
  Computer board - Alpha division                        --   (49,124)
  Privilege card operations - PEL                        --    16,145
  Prepaid phone card segment - UK                        --   359,684
                                                   --------   --------
Net income (loss) before dividends
  on preferred stock                               (805,678)   208,261

Dividends on preferred stock                         43,951      9,185

Income (loss) applicable to
  common shareholders                             ($849,629)  $199,076
                                                  =========  =========
Basic and diluted income (loss) per common share

Continuing operations                                $(0.04)    $(0.01)

Discontinued operations:
  Gain from operations                                   --      $0.03

Total                                                $(0.04)     $0.02
                                                  =========  =========

Weighted average common shares outstanding       19,181,184 12,508,282

     See Accompanying Notes to Consolidated Financial Statements



                                   4

<PAGE>

                       DCI Telecommunications, Inc.
                  Consolidated Statements of Cash Flows
                               (unaudited)

                                               Three Months Ended
                                                    June 30,
                                               1998          1997
Cash flows from (used in) operating activities:
Net loss from continuing operations        ($ 805,678)     ($118,444)
Adjustment to reconcile net loss from
 continuing operations to net cash from
 (used in) operating activities:
        Depreciation and amortization         168,319         45,916
        Stock issued for services                  --            800
        Minority interest                       3,213             --

   Changes in assets and liabilities:
     (Increase) Decrease in:
        Restricted cash                      (325,771)            --
        Accounts receivable                (1,720,328)      (305,121)
        Inventory                            (354,123)       (46,547)
        Deposits                              (45,871)       (71,743)
        Prepaid expenses                        9,485             --
        Other assets                          (77,523)      (139,767)

     Increase (Decrease) in:
        Accounts payable and
          accrued expenses                  1,075,871        550,995
        Participations payable               (372,338)      (228,188)
        Income taxes                           91,341         35,883
        Deferred revenue                      212,650             --
                                             --------       --------
           Total Adjustments               (1,335,075)      (157,772)
                                             --------       --------
Net cash used in operating activities      (2,140,753)      (276,216)
                                             --------       --------

Cash flows from (used in) investing activities:
        Additions to fixed assets            (265,076)       (19,453)
                                             --------       --------
Net cash used in investing activities        (265,076)       (19,453)
                                             --------       --------

Cash flows from (used in) financing activities:
        Proceeds from stock
          options exercised                   248,589         68,077
        Purchase of treasury stock         (2,355,318)            --
        Due to joint venture                  688,157             --
        Payment of notes payable           (4,938,942)      (272,800)
        Proceeds from sale of
          preferred stock                   2,750,000             --
        Common stock dividend                (203,962)            --
        Advances from shareholders           (209,786)       298,979
        Sale of equity securities           8,124,761             --
                                             --------       --------
Net cash from financing activities          4,103,499         94,256
                                             --------       --------

Net cash used in discontinued operations           --        (24,368)

Net increase (decrease) in cash             1,697,670       (225,781)

Cash, beginning of year                     1,914,160      1,295,300
                                           ----------      ---------
Cash, end of period                        $3,611,830     $1,069,519


                                              Three Months Ended
                                                    June 30,
                                             1998           1997

Supplemental disclosures of cash flow information:

Cash paid for interest                      $80,000       $  33,000

Non cash investing and financing transactions:
     Acquisitions by stock issuance:
        CardCall International                   --      $7,254,523
        CyberFax                                 --      $1,033,975
     Preferred stock dividends              $43,951      $    9,185
     Non cash settlements                        --       $  40,000


     See Accompanying Notes to Consolidated Financial Statements

                                    5

<PAGE>

DCI Telecommunications, Inc.
Notes to Unaudited Financial Statements June 30, 1998

NOTE 1.
-------

The  accompanying  unaudited financial statements have been  prepared  in
accordance  with  generally accepted accounting  principles  for  interim
financial   information  and  with  the  provisions  of  Regulation   SB.
Accordingly,  they  do not include all of the information  and  footnotes
required   by  generally  accepted  accounting  principles  for  complete
financial  statements.  In  the opinion of  management,  all  adjustments
(consisting of normal recurring adjustments) considered necessary  for  a
fair  presentation have been included. Certain reclassification of  prior
year   numbers   have  been  made  to  conform  to  the   current   years
presentations, to report the acquisition of Edge Communications, Inc.  as
a pooling of interest, and to account for discontinued operations.

The consolidated financial statements include the accounts of the Company
and  its  wholly  and majority owned subsidiaries. Material  intercompany
balances and transactions have been eliminated in consolidation.

The  results  of operations for the periods presented are not necessarily
indicative  of  the  results  to be expected  for  the  full  year.   The
accompanying financial statements should be read in conjunction with  the
Company's form 10-KSB filed for the year ended March 31, 1998.

Income (loss) per share was computed using the weighted average number of
common shares outstanding.

Note 2.  Acquisitions

CardCall International Holdings, Inc.
-------------------------------------

On  March  31,  1997,  DCI,  entered into  an  agreement  with   CardCall
International  Holdings,  Inc.  (CardCall), a  Delaware  corporation,  to
purchase  all  its  outstanding  common  stock  (8,238,125  shares)   and
warrants.  CardCall's board of directors  had approved the  agreement  on
March 29,1997, subject to shareholder approval.

CardCall  is  the parent company of CardCaller Canada, Inc.,  a  Canadian
corporation, and CardCall (UK) Limited, incorporated under  the  laws  of
the  United Kingdom. CardCall is in the business of designing, developing
and marketing, through distributors, prepaid phone cards that provide the
cardholder  access to long distance service through switching facilities.
DCI had previously invested $1,500,000 in CardCall, for which it received
$1,200,000 in notes payable 120 days from demand. The remaining  $300,000
did  not  have any stipulated repayment terms.  The Company  raised  this
money  through the issuance of DCI convertible preferred stock to certain
shareholders of CardCall.


                                    6

<PAGE>

By   May 29, 1997,  the  shareholders  of  CardCall  had  approved   the
transaction. For each 100 shares of common stock of CardCall  held  by  a
shareholder, DCI will issue a warrant to purchase nine shares  of  common
stock  for  $4.00 per share on or before February 28, 2001. In  addition,
each  shareholder of CardCall may acquire 85 shares of DCI  common  stock
under  a subscription agreement, for each 100 shares of CardCall held  by
such  shareholder,  at  a  purchase price of $.20  per  share.  7,002,406
options to purchase DCI stock at $.20 per share were granted as a  result
of this transaction.  As of June 30, 1998, 4,023,685 of these options for
shares of DCI stock had been exercised.

Such  options expire on April 30, 2002. In accordance with the agreement,
shares  of  DCI  stock  received  from  the  exercise  of  options   have
restrictions as to when they can be sold ranging from September  1,  1997
to November 1, 1998.

The  transaction  was recorded under the purchase method  of  accounting,
effective April 1, 1997. The total purchase price includes the $1,500,000
in  cash, $2,545,000 assigned value for the stock and stock options,  and
assumption  of  net liabilities of $3,210,000. Goodwill was  recorded  at
$7,255,000. The financial statements include the results of operations of
CardCall  since  April 1, 1997, the effective date  of  acquisition.  The
goodwill  is  being amortized over 20 years. Revenue  from  the  sale  of
prepaid  phone cards is recognized upon first usage of the  card  by  the
customers.

Edge Communications, Inc.
-------------------------

On  April 30,1998 the Company issued 4,385,715 shares of common stock for
all   of  the  outstanding  shares  of  Edge  Communications,  Inc.   The
acquisition  has  been  accounted for as  a  pooling  of  interests,  and
accordingly, the accompanying financial information has been restated  to
include the accounts of Edge for all periods presented. Net sales and net
(loss)  earnings of the separate companies prior to date  of  acquisition
are as follows:
                                April 1, 1998     Three Months Ended
                                   through              June 30,
                                April 30, 1998            1997
                                --------------    ---------------
     Net Sales:
     DCI                         $  737,836         $2,367,522
     Edge Communications, Inc.    1,092,500          1,828,263
                                 ----------         ----------
     Combined                    $1,830,336         $4,195,785
                                  =========         ==========

     Net(Loss) From Continuing Operations:
     DCI                          ($301,528)         ($166,246)
     Edge Communications, Inc.      (56,492)            47,802
                                 ----------         ----------
     Combined                     ($358,020)         ($118,444)
                                 ==========         ==========

                                    7

<PAGE>

NOTE 3.  Common and Preferred Stock
-----------------------------------

In  April, 1998 the Company issued $3,000,000 of Series F 8% non-voting
convertible preferred shares. The shares are convertible to common  stock
90  days  from the issue date at the lesser of 75% of the average closing
bid price of the common stock for the ten days prior to conversion or $4.
The  securities must be converted into common shares within two years  of
the  issue  date.  In  connection  with  this  offering  50,000  warrants
exercisable at  $1.56 for a period of five years from the issue date were
granted to these preferred shareholders and 50,000 warrants, at the  same
terms,  were  granted  to  certain individuals as  finder  fees  for  the
placement of the preferred shares with investors.

During  the three months ended June 30, 1998, the holders of $412,500  of
preferred  shares  of  Series E Convertible Preferred  Stock  and  deemed
dividends  of  $98,959  were  converted  to  368,304  common  shares.  In
addition, options to purchase 1,691,122 common shares were exercised from
which the Company received $248,589.


NOTE 4.  PhoneLine CardCall International
-----------------------------------------

On March 31, 1998 the Company and DataWave Systems Inc. (DataWave) formed
a  Canadian  company, PhoneLine CardCall International ("PhoneLine")  for
the  marketing,  sale  and  service of prepaid  long  distance  telephone
calling cards in Canada. DataWave and CardCaller Canada, Inc. contributed
fixed  assets,  Canadian business, and certain liabilities to  PhoneLine.
DCI owns 60% and DataWave 40% of the company.

The  Company's  consolidated financial statements  include  100%  of  the
assets,  liabilities and operations of PhoneLine. The ownership  interest
of  DataWave  is  recorded  as a minority interest  in  the  accompanying
financial statements.

                                    8
<PAGE>

               Management's Discussion and Analysis of
              Financial Condition and Results of Operations

Overview
--------

The   following   discussion  and  analysis  provides  information   that
management believes is relevant to an assessment and understanding of DCI
Telecommunications,   Inc.  and  its  subsidiaries   (collectively,   the
Company), consolidated results of operations and financial condition  for
the  three months ended June 30, 1998. The discussion should be  read  in
conjunction  with  the  Company's consolidated financial  statements  and
accompanying notes.

The Company, since its recent acquisitions, operates predominantly in the
telecommunications  industry  providing a broad  range  of  communication
service.  The  Company's  services include long distance,  prepaid  phone
cards, motion picture distribution, a travel agency, as well as real-time
fax  over  the  Internet. Through continued investments and  fiscal  1998
business acquisitions, the Company has expanded its business into rapidly
developing markets.

Recent Acquisitions and Dispositions
------------------------------------

In  the  quarter  ended  June  30, 1997, the  Company  acquired  CardCall
International   and   CyberFax.  CardCall  International,   through   its
subsidiaries CardCall UK and CardCaller Canada, sold prepaid phone cards.
In  the  third  quarter of fiscal 1998, the Company sold its  phone  card
distribution  contract in the U.K. for $9,000,000. Due to  a  non-compete
clause  in  the  sale agreement, CardCall UK discontinued its  operations
after  the  sale.  During  fiscal  1998  the  Company  also  discontinued
operations  of  Privilege  Enterprises Limited  and  its  Alpha  Products
division due to a lack of profitability.

On  March  31, 1998 the Company and DataWave Systems, Inc. formed  a  new
company,   PhoneLine   CardCall  International  ("PhoneLine")   for   the
marketing,  sale  and  service of prepaid long distance  phone  cards  in
Canada.  The  accompanying financial statements include  the  results  of
PhoneLine  for  the quarter ending June 30, 1998. This new company  joins
together two of the larger prepaid phone card distributors in Canada, and
the  Company  is  expecting  economies of scale  by  facility  and  staff
reductions, as well as better long distance rates with carriers. DCI owns
60% and DataWave 40% of PhoneLine.

During  the  quarter  ended  June  30, 1998  the  Company  acquired  Edge
Communications,  Inc.  This acquisition gave  the  Company  a  meaningful
entrance  into  the  U.S. prepaid phone card market. Edge  had  sales  of
$8,780,000  for  the  twelve months ended March 31,  1998  and  has  been
sustaining  rapid growth in the last several months. Edge  was  accounted
for as a pooling of interests.



                                   9
<PAGE>

Liquidity and Capital Resources
-------------------------------

At  March  31,  1998  the Company had unrestricted  cash  of  $1,837,000,
$43,000  of  marketable securities, and $8,125,000 of stock  of  SmarTalk
Teleservices,  Inc. During the quarter ended June 30, 1998,  the  Company
sold the SmarTalk stock realizing net proceeds of $8,125,000. The Company
repaid its loans of $4,939,000 which it had borrowed against its position
in SmarTalk stock.

Also during the quarter ending June 30, 1998, the former shareholders  of
Muller  Media exercised their put options to receive $2,000,000 in  cash,
and the Company repurchased 800,000 shares of its common stock.

Other  sources  of cash during the quarter included $2,750,000  from  the
sale of preferred stock, and $249,000 from the exercise of stock options.

At  June  30, 1998 the Company has a current ratio of 1.7 to 1,  and  has
unrestricted cash of $3,612,000.

The  Company has an agreement to acquire Locus Corporation, a  facilities
based  carrier  located in Fort Lee, New Jersey.  The  Company  has  also
entered  into  a Letter of Intent to enter a European joint venture  with
TIMEWorldCom,  an  international  provider  of  long  distance  services,
located  in  Gaithersburg, Maryland. Management  believes  it  will  need
additional   resources   to   complete  the  acquisitions,   specifically
$10,000,000  for  the Locus acquisition, and to fund the  future  capital
needs  of  these companies and its existing subsidiaries. The ability  of
the  Company to finance all new and existing operations will  be  heavily
dependent  on external sources. No assurance can be given that additional
financing  will  be  available,  or if available,  that  it  will  be  on
acceptable terms.

Consolidated Results of Operations
----------------------------------

Changes  reflected in the following analysis that refer to PhoneLine  are
gross  changes.  It  should be noted that the Company  owns  60%  of  the
PhoneLine.

                                           Three Months Ended
                                                June 30,
                                            1998         1997
                                            ----         ----
Net Sales                                $6,305,302   $4,195,785
---------

Net  sales  in  the quarter ended June 30, 1998 increased $2,109,517,  or
50%, over the 1997 first quarter. Phone card sales by Edge Communications
increased  approximately  $2,602,000 over 1997  levels.  Sales  of  newly
formed PhoneLine were $345,000 less than CardCaller Canada sales in 1997,
primarily due to the delay in the startup of PhoneLine.
     
                                   10
<PAGE>

                                           1998        1997
                                           ----        ----
Cost of Sales                           $5,378,571   $3,492,324
-------------

Cost  of  sales increased $1,886,247 in the 1998 first quarter.  Cost  of
sales  for Edge increased $2,455,000, principally due to increased sales.
PhoneLine  cost  of  sales dropped by $449,000, due  to  lower  sales  as
compared  to CardCaller Canada alone in 1997. Muller cost of  sales  also
declined slightly as a result of lower sales.

                                               1998        1997
                                             --------    --------
Selling, General & Administration Expense    $510,261    $418,942
-----------------------------------------

Selling,  general  and administrative costs increased  $91,000  in  1998.
Travel  and  entertainment costs increased $37,000 as the Company  became
more  globally  diverse.  In connection with its  growth,  Edge  incurred
$30,000 more in SG&A in 1998, and the balance of the increase is  due  to
general corporate growth.


                                          1998       1997
                                          ----       ----
Salaries and Compensation                $650,030   $230,117
-------------------------

Salaries were $420,000 higher in the 1998 first quarter. Of the increase,
$156,000  was  associated  with the European operations  which  were  not
operational  in  1997 and $133,000 was due to corporate staff  increases.
Increases  are  also  associated  with  PhoneLine  (2  companies)  versus
CardCaller Canada alone in 1997.

                                         1998        1997
                                         ----        ----
Professional and Consulting Fees      $357,253     $106,115
--------------------------------

Professional  and  consulting fees increased $251,000 over  1997  levels.
Acquisitions,  dispositions and general corporate growth all  contributed
to  an increase of $180,000 at the corporate level. Legal, accounting and
management  fees  associated with PhoneLine accounted for  an  additional
$51,000,  while  professional fees for the  Edge  acquisition  and  audit
accounted for $20,000.

                                          1998       1997
                                          ----       ----
Amortization and Depreciation          $168,319     $45,616
-----------------------------

Amortization  and depreciation rose $122,703 in 1998 as compared  to  the
1997 first quarter. Amortization of goodwill associated with CyberFax and

                                   11

<PAGE>

CardCall  International accounted for $62,500 of the increase.  Increased
depreciation on added equipment at all the subsidiaries accounted for the
balance.

                                        1998        1997
                                         ----       ----
Interest Income                       $ 37,020     $11,950
Interest Expense                      ($80,353)   ($33,065)
---------------

The $25,000 increase in investment income is a result of $8,000 earned by
DCI  on short-term investments plus $7,000 increased earnings from Muller
Investments.

Interest  expense increased $47,000 in 1998. Interest expense  on  short-
term  debt  borrowed  by DCI against the SmarTalk  stock  resulted  in  a
$72,000  increase.  This  was  partially offset  by  lower  interest  for
CardCaller  Canada  which had paid off debt it  had  in  the  1997  first
quarter.

                                           1998       1997
                                           ----       ----
Discontinued operations - Alpha              --    ($49,124)
                        - Privilege Card     --     $16,145
                        - CardCall U.K.      --    $359,684

These  balances  in  1997 represent the net operating gains  (losses)  of
operations that were discontinued in 1998.

                                    12
<PAGE>

                           PART II
                      OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.
          Not applicable.

ITEM 2.  CHANGES IN SECURITIES.
          Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.
          Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
          Not applicable.

ITEM 5.  OTHER INFORMATION.
          Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.
          Page 14

















                                    13

<PAGE>

ITEM 6 - Exhibits and Reports on Form 8K

On  May  14,  1998  the  Company  filed a Form  8K  which  described  the
acquisition of Edge Communications, Inc.

On  May  19,  1998  the  Company  filed a Form  8K  which  described  the
termination  of  acquisition  discussions with  WorldPass  Communications
Corporation, the declaring of a $.01 per common share cash dividend,  and
the signing of a Letter of Intent with Locus Corporation.

On  June  16,  1998  the  Company filed a Form  8K  which  described  the
exercising  of put options under the stock purchase agreement  among  the
Company, Muller Media, Inc., and Robert Muller and Daniel Mulholland.

On  July 7, 1998 the Company filed a Form 8K which included a copy of the
Escrow Agreement among the selling shareholders of Muller Media, Inc. and
the Company.

On  July 27, 1998 the Company filed a Form 8K which described the signing
of  a  definitive agreement to acquire privately owned Locus Corporation.
Also described was the activity of stock options issued through July  22,
1998.

On August 17, 1998 the Company filed a Form 8K which included the audited
financial statements for Edge Communications, Inc.

























                                   14

<PAGE>

                            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 thereunto duly authorized.

                                      DCI TELECOMMUNICATIONS, INC.
                                              (Registrant)


Dated: August 17, 1998             By: Joseph J. Murphy
                                        ----------------
                                        Joseph J. Murphy
                                        President

                                    By: Russell B. Hintz
                                        ----------------
                                        Russell B. Hintz
                                        Chief Financial Officer


















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