<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000731129
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 FLAG INVESTORS COMMUNICATIONS FUND, INC.
001 B000000 811-3883
001 C000000 4107271700
002 A000000 1 SOUTH STREET
002 B000000 BALTIMORE
002 C000000 MD
002 D010000 21202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 INVESTMENT COMPANY CAPITAL CORP.
008 B000001 A
008 C000001 801-29557
008 D010001 BALTIMORE
008 D020001 MD
008 D030001 21202
008 A000002 BT ALEX. BROWN INVESTMENT MANAGEMENT
008 B000002 S
008 C000002 801-21616
008 D010002 BALTIMORE
008 D020002 MD
008 D030002 21202
011 A000001 BT ALEX. BROWN, INCORPORATED
011 B000001 8-194
011 C010001 BALTIMORE
011 C020001 MD
011 C030001 21202
012 A000001 INVESTMENT COMPANY CAPITAL CORP.
012 B000001 84-5477
<PAGE> PAGE 2
012 C010001 BALTIMORE
012 C020001 MD
012 C030001 21202
013 A000001 PRICEWATERHOUSE COOPERS L.L.P.
013 B010001 BALTIMORE
013 B020001 MD
013 B030001 21202
014 A000001 BT ALEX. BROWN, INCORPORATED
014 B000001 8-31213
015 A000001 BANKERS TRUST COMPANY
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10006
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 10
019 C000000 FLAGINVEST
020 A000001 BEAR STAERNS & O.
020 B000001 13-3299429
020 C000001 46
020 A000002 JEFFERIES CO.& CO. INC.
020 B000002 95-2622900
020 C000002 35
020 A000003 DONALDSON, LUFKIN & JENRETTE INC.
020 B000003 13-2741729
020 C000003 31
020 A000004 INSTINET CORP.
020 B000004 13-3443395
020 C000004 31
020 A000005 BROWN BROTHERS HARRIMAN & CO.
020 B000005 13-4973745
020 C000005 23
020 A000006 MONTGOMERY SECURITIES
020 B000006 94-1701676
020 C000006 22
020 A000007 ROBERTSON STEPHENS & CO.
020 B000007 94-2524501
020 C000007 16
020 A000008 CS FIRST BOSTON
020 B000008 13-5659485
020 C000008 12
020 A000009 FURMAN SELZ
020 B000009 13-3856626
020 C000009 9
020 A000010 LEGG MASON
020 B000010 52-0902557
020 C000010 8
021 000000 276
022 A000001 GOLDMAN SACHS & CO.
<PAGE> PAGE 3
022 B000001 13-5108880
022 C000001 10624514
022 D000001 1389
022 A000002 FORD MOTOR CREDIT CORP
022 B000002 38-1612444
022 C000002 49965
022 D000002 0
022 A000003 AMERICAN EXPRESS CREDIT CORP
022 B000003 51-6041053
022 C000003 49949
022 D000003 0
022 A000004 MERRILL LYNCH, PEIRCE, FENNER & SMITH INC.
022 B000004 13-2629351
022 C000004 8852
022 D000004 2352
022 A000005 MORGAN (J.P.) SECURITIES INC.
022 B000005 13-2240160
022 C000005 3968
022 D000005 2678
022 A000006 JEFFERIES CO.
022 B000006 95-2622900
022 C000006 5178
022 D000006 0
022 A000007 MORGAN STANLEY & CO INC.
022 B000007 13-3224016
022 C000007 5034
022 D000007 0
022 A000008 CS FIRST BOSTON
022 B000008 13-3704587
022 C000008 3781
022 D000008 0
022 A000009 SMITH BARNEY SHEARSON
022 B000009 13-1912900
022 C000009 0
022 D000009 3621
022 A000010 DONALDSON, LUFKIN & JENRETTE INC
022 B000010 13-2474179
022 C000010 3583
022 D000010 0
023 C000000 10757514
023 D000000 17745
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
<PAGE> PAGE 4
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 22637
028 A020000 10164
028 A030000 0
028 A040000 6840
028 B010000 18348
028 B020000 -1
028 B030000 0
028 B040000 8342
028 C010000 15395
028 C020000 0
028 C030000 0
028 C040000 15351
028 D010000 15046
028 D020000 873
028 D030000 0
028 D040000 10638
028 E010000 75814
028 E020000 0
028 E030000 0
028 E040000 49892
028 F010000 74009
028 F020000 29537
028 F030000 0
028 F040000 12280
028 G010000 221249
028 G020000 40573
028 G030000 0
028 G040000 103343
028 H000000 144960
029 000000 Y
030 A000000 3743
030 B000000 4.50
030 C000000 0.00
031 A000000 212
031 B000000 0
032 000000 3202
033 000000 329
034 000000 Y
035 000000 102
036 A000000 N
036 B000000 0
037 000000 N
<PAGE> PAGE 5
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 2898
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.850
048 B010000 100000
048 B020000 0.750
048 C010000 100000
048 C020000 0.700
048 D010000 200000
048 D020000 0.650
048 E010000 500000
048 E020000 0.580
048 F010000 500000
048 F020000 0.530
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 1500000
048 K020000 0.500
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
<PAGE> PAGE 6
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 2000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 Y
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
<PAGE> PAGE 7
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 119104
071 B000000 172505
071 C000000 877120
071 D000000 14
072 A000000 12
072 B000000 2433
072 C000000 11263
072 D000000 0
072 E000000 0
072 F000000 5928
072 G000000 0
072 H000000 0
072 I000000 578
072 J000000 102
072 K000000 62
072 L000000 78
072 M000000 35
<PAGE> PAGE 8
072 N000000 98
072 O000000 0
072 P000000 0
072 Q000000 136
072 R000000 31
072 S000000 128
072 T000000 2898
072 U000000 0
072 V000000 0
072 W000000 17
072 X000000 10091
072 Y000000 0
072 Z000000 3605
072AA000000 109209
072BB000000 0
072CC010000 510944
072CC020000 0
072DD010000 4211
072DD020000 112
072EE000000 45711
073 A010000 0.1250
073 A020000 0.0000
073 B000000 1.1800
073 C000000 0.0000
074 A000000 1
074 B000000 60305
074 C000000 129855
074 D000000 0
074 E000000 0
074 F000000 1245444
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 12739
074 M000000 177
074 N000000 1448521
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3378
074 S000000 0
074 T000000 1445143
074 U010000 37273
074 U020000 5011
074 V010000 34.23
074 V020000 0.00
<PAGE> PAGE 9
074 W000000 0.0000
074 X000000 37197
074 Y000000 0
075 A000000 0
075 B000000 902516
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 100000
081 A000000 Y
081 B000000 12
082 A000000 Y
082 B000000 100
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000731129
<NAME> FLAG INVESTORS COMMUNICATIONS FUND CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 598361019
<INVESTMENTS-AT-VALUE> 1435604422
<RECEIVABLES> 12738411
<ASSETS-OTHER> 177982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1448520815
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3377640
<TOTAL-LIABILITIES> 3377640
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 423771671
<SHARES-COMMON-STOCK> 37273461
<SHARES-COMMON-PRIOR> 32149145
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 73095529
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 837243403
<NET-ASSETS> 1275775433
<DIVIDEND-INCOME> 11262497
<INTEREST-INCOME> 2433424
<OTHER-INCOME> 0
<EXPENSES-NET> 10090723
<NET-INVESTMENT-INCOME> 3605198
<REALIZED-GAINS-CURRENT> 109209276
<APPREC-INCREASE-CURRENT> 510943527
<NET-CHANGE-FROM-OPS> 623758001
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 134407466
<DISTRIBUTIONS-OF-GAINS> 31863510
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7997108
<NUMBER-OF-SHARES-REDEEMED> 4236213
<SHARES-REINVESTED> 1383390
<NET-CHANGE-IN-ASSETS> 758872736
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10314676
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5927518
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10090723
<AVERAGE-NET-ASSETS> 794760899
<PER-SHARE-NAV-BEGIN> 19.37
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> 16.05
<PER-SHARE-DIVIDEND> (.40)
<PER-SHARE-DISTRIBUTIONS> (.91)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.23
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000731129
<NAME> FLAG INVESTORS COMMUNICATIONS FUND CLASS B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 598361019
<INVESTMENTS-AT-VALUE> 1435604422
<RECEIVABLES> 12738411
<ASSETS-OTHER> 177982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1448520815
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3377640
<TOTAL-LIABILITIES> 3377640
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107580197
<SHARES-COMMON-STOCK> 4891128
<SHARES-COMMON-PRIOR> 1689565
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 73095529
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 837243403
<NET-ASSETS> 165307878
<DIVIDEND-INCOME> 11262497
<INTEREST-INCOME> 2433424
<OTHER-INCOME> 0
<EXPENSES-NET> 10090723
<NET-INVESTMENT-INCOME> 3605198
<REALIZED-GAINS-CURRENT> 109209276
<APPREC-INCREASE-CURRENT> 510943527
<NET-CHANGE-FROM-OPS> 623758001
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1158104
<DISTRIBUTIONS-OF-GAINS> 3523412
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3461232
<NUMBER-OF-SHARES-REDEEMED> 421723
<SHARES-REINVESTED> 162054
<NET-CHANGE-IN-ASSETS> 758872736
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10314676
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5927518
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10090723
<AVERAGE-NET-ASSETS> 72087267
<PER-SHARE-NAV-BEGIN> 19.22
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 15.83
<PER-SHARE-DIVIDEND> (.32)
<PER-SHARE-DISTRIBUTIONS> (.91)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 33.80
<EXPENSE-RATIO> 1.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000731129
<NAME> FLAG INVESTORS COMMUNICATIONS FUND CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 598361019
<INVESTMENTS-AT-VALUE> 1435604422
<RECEIVABLES> 12738411
<ASSETS-OTHER> 177982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1448520815
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3377640
<TOTAL-LIABILITIES> 3377640
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2814996
<SHARES-COMMON-STOCK> 95961
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 73095529
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 837243403
<NET-ASSETS> 3246874
<DIVIDEND-INCOME> 11262497
<INTEREST-INCOME> 2433424
<OTHER-INCOME> 0
<EXPENSES-NET> 10090723
<NET-INVESTMENT-INCOME> 3605198
<REALIZED-GAINS-CURRENT> 109209276
<APPREC-INCREASE-CURRENT> 510943527
<NET-CHANGE-FROM-OPS> 623758001
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8002
<DISTRIBUTIONS-OF-GAINS> 25235
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 96807
<NUMBER-OF-SHARES-REDEEMED> 1875
<SHARES-REINVESTED> 1030
<NET-CHANGE-IN-ASSETS> 758872736
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10314676
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5927518
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10090723
<AVERAGE-NET-ASSETS> 1130372
<PER-SHARE-NAV-BEGIN> 25.5
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> 9.21
<PER-SHARE-DIVIDEND> (.21)
<PER-SHARE-DISTRIBUTIONS> (.65)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 33.84
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000731129
<NAME> FLAG INVESTORS COMMUNICATIONS FUND INSTITUTIONAL CLASS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 598361019
<INVESTMENTS-AT-VALUE> 1435604422
<RECEIVABLES> 12738411
<ASSETS-OTHER> 177982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1448520815
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3377640
<TOTAL-LIABILITIES> 3377640
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 637379
<SHARES-COMMON-STOCK> 23722
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 73095529
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 837243403
<NET-ASSETS> 812990
<DIVIDEND-INCOME> 11262497
<INTEREST-INCOME> 2433424
<OTHER-INCOME> 0
<EXPENSES-NET> 10090723
<NET-INVESTMENT-INCOME> 3605198
<REALIZED-GAINS-CURRENT> 109209276
<APPREC-INCREASE-CURRENT> 510943527
<NET-CHANGE-FROM-OPS> 623758001
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3699
<DISTRIBUTIONS-OF-GAINS> 10896
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23201
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 521
<NET-CHANGE-IN-ASSETS> 758872736
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10314676
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5927518
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10090723
<AVERAGE-NET-ASSETS> 287362
<PER-SHARE-NAV-BEGIN> 23.26
<PER-SHARE-NII> .06
<PER-SHARE-GAIN-APPREC> 12.17
<PER-SHARE-DIVIDEND> (.31)
<PER-SHARE-DISTRIBUTIONS> (.91)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 34.27
<EXPENSE-RATIO> .83
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
February 26, 1999
PricewaterhouseCoopers LLP
250 West Pratt Street
Baltimore, MD 21201-2304
RE: Flag Investors Communications Fund, Inc.
Dear Sirs:
Under the date of February 5, 1999, we confirmed by letter certain information
and opinions expressed to you with respect to the financial statements of the
Flag Investors Communications Fund, Inc. (the "Fund") for the year December 31,
1998, to be included in the Post Effective Amendment No. 22 to the Fund's
Registration Statement on Form N-1A. We confirm that, to the best of our
knowledge and belief, the statements made in said letter are correct as of this
date and there have been no developments since the date of this letter which
would materially affect the financial statements for all periods presented.
In addition, we know of no event since the date of this letter which, although
not affecting such financial statements, has caused or is likely to cause any
material change, adverse or otherwise, in the financial position or results of
the operations of the Funds.
Very truly yours,
- ----------------------------------------
Brian W. Wixted
Principal
- ----------------------------------------
Joseph A. Finelli
Treasurer