Annual Notice of Securities Sold Pursuant to Rule 24F-2
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 24F-2
Annual Notice of Securities Sold
Pursuant to Rule 24f-2
Read instructions at end of Form before preparing Form.
Please print or type.
1. Name and address of issuer:
Flag Investors Telephone Income Fund, Inc.
135 East Baltimore Street
Baltimore, Maryland 21202
___________________________________________________________________
2. Name of each series or class of funds for which this notice is
filed:
Class A
Class B
Class D*
_______________
*Class D shares are no longer offered, though shares remain
outstanding.
___________________________________________________________________
3. Investment Company Act File Number: 811-3883
Securities Act File Number: 2-87336
___________________________________________________________________
4. Last day of fiscal year for which this notice is filed:
December 31, 1995
___________________________________________________________________
5. Check box if this notice is being filed more than 180 days
after the close of the issuer's fiscal year for purposes of
reporting securities sold after the close of the fiscal year
but before termination of the issuer's 24f-2 declaration:
N/A
6. Date of termination of issuer's declaration under rule 24f-
2(a)(1), if applicable (see Instruction A.6):
N/A
1 <PAGE>
<PAGE>
___________________________________________________________________
7. Number and amount of securities of the same class or series
which had been registered under the Securities Act of 1933
other than pursuant to rule 24f-2 in a prior fiscal year, but
which remained unsold at the beginning of the fiscal year:
None
___________________________________________________________________
8. Number and amount of securities registered during the fiscal
year other than pursuant to rule 24f-2:
None
___________________________________________________________________
9. Number and aggregate sale price of securities sold during the
fiscal year:
2,634,796 shares at $36,005,550
___________________________________________________________________
10. Number and aggregate sale price of securities sold during the
fiscal year in reliance upon registration pursuant to rule
24f-2:
2,634,796 shares at $36,005,550
___________________________________________________________________
11. Number and aggregate sale price of securities issued during
the fiscal year in connection with dividend reinvestment
plans, if applicable (see Instruction B.7):
2,891,282 shares at $40,313,196
<PAGE>
12. Calculation of registration fee:
(i) Aggregate sale price of securities sold during the fiscal
year in reliance on rule 24f-2 (from Item 10):
$36,005,550
________________________
(ii) Aggregate price of shares issued in connection with
dividend reinvestment plans (from Item 11, if
applicable):
+40,313,196
________________________
(iii) Aggregate price of shares redeemed or repurchased
during the fiscal year (if applicable):
-76,318,746*
_________________________
* Pursuant to the instructions for this form, item 12
(iii) represents only a portion of the Fund's total
redemptions during the fiscal year ended 12/31/95
which were $106,718,217. The difference will be
registered on the Fund's annual post-effective
amendment pursuant to Rule 24e-2.
(iv) Aggregate price of shares redeemed or repurchased and
previously applied as a reduction to filing fees pursuant
to rule 24e-2 (if applicable):
+0
________________________
(v) Net aggregate price of securities sold and issued during
the fiscal year in reliance on rule 24f-2 {line (i), plus
line (ii), less line (iii), plus line (iv)} (if
applicable):
0
________________________
(vi) Multiplier prescribed by Section 6(b) of the Securities
Act of 1933 or other applicable law or regulation (see
Instruction C.6):
x 1/2,900
________________________
(vii) Fee due {line (i) or line (v) multiplied by line
(vi)}:
0
=========================
Instruction: Issuers should complete lines (ii), (iii), (iv), and
(v) only if the form is being filed within 60 days
after the close of the issuer's fiscal year. See
Instruction C.3.
3 <PAGE>
<PAGE>
13. Check box if fees are being remitted to the Commission's
lockbox depository as described in section 3a of the
Commission's Rules of Informal and Other Procedures (17 CFR
202.3a).
Date of mailing or wire transfer of filing fees to the
Commission's lockbox depository:
N/A
SIGNATURES
This report has been signed by the following person on behalf of
the issuer and in the capacities and on the date indicated.
By (Signature and Title)* /s/ Joseph A. Finelli
Joseph A. Finelli, Treasurer
Date February 8, 1996
* Please print the name and title of the signing officer below the
signature.
4 <PAGE>
<PAGE>
<TABLE>
FLAG INVESTORS TELEPHONE INCOME FUND, INC.
SCHEDULE A
<CAPTION>
AGGREGATE AGGREGATE
SHARES SALES DRP DRP SHARES REDEMPTION
CLASS SOLD PRICE SHARES VALUE REDEEMED PRICE
<S> <C> <C> <C> <C> <C> <C>
Flag A 2,145,785 $29,305,314 2,674,624 $37,305,866 7,132,553 $ 97,427,131
Flag B 489,011 6,700,236 32,826 458,760 15,929 229,177
Flag D --- $ 0 183,832 2,548,570 655,092 9,061,909
2,634,796 $36,005,550 2,891,282 $40,313,196 7,803,574 $106,718,217
Computation of Fee: ($36,005,550 + 40,313,196 - $106,718,217) Divided 2,900 = $0
</TABLE>
5 <PAGE>
<PAGE>
{LETTERHEAD OF MORGAN, LEWIS & BOCKIUS LLP }
February 8, 1996
VIA EDGAR
Flag Investors Telephone Income Fund, Inc.
135 Baltimore Street
Baltimore, Maryland 21202
Re: Rule 24f-2 Notice for
Flag Investors Telephone Income Fund, Inc.
(File No. 2-87336)
Gentlemen:
Flag Investors Telephone Income Fund, Inc. (the "Fund") is a
corporation organized under the laws of the State of Maryland with
its principal place of business in Baltimore, Maryland. The Fund
is an open-end non-diversified management investment company
registered with the Securities and Exchange Commission (the
"Commission") under the Investment Company Act of 1940 (the "1940
Act"). This opinion relates to shares of common stock, par value
$.001 per share, sold by the Fund in reliance upon Rule 24f-2
during its fiscal year ended December 31, 1995, the registration of
which is made definite by the filing of the attached Notice.
We have reviewed all proceedings taken by the Fund in connection
with the offer and sale of the shares of common stock, par value
$.001 per share, which have been offered under Prospectuses
included as part of the Fund's Registration Statement on Form N-1A,
as amended to the date hereof, which has been filed with the
Commission under the Securities Act of 1933 and the 1940 Act
(collectively, the "Registration Statement").
We are of the opinion that such shares of common stock, when sold
and issued in return for the payment described in the Fund's
Registration Statement, were legally issued, fully paid and non-
assessable by the Fund.
Very truly yours,
/s/ Morgan, Lewis & Bockius LLP
cc: Mr. Joseph A. Finelli
6 <PAGE>
<PAGE>
