EMERGING MARKETS TELECOMMUNICATIONS FUND INC, N-30D, 1999-02-03

EMERGING MARKETS TELECOMMUNICATIONS FUND INC
N-30D, 1999-02-03

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<PAGE>

The Emerging Markets
Telecommunications
Fund, Inc.
--------------------
Semi-Annual Report
November 30, 1998

<PAGE>
CONTENTS

Letter to Shareholders............................... 1

Portfolio Summary.................................... 7

Schedule of Investments.............................. 9

Statement of Assets and Liabilities..................13

Statement of Operations..............................14

Statement of Changes in Net Assets...................15

Financial Highlights.................................16

Notes to Financial Statements........................17

Results of Annual Meeting of Shareholders............22

Description of InvestLink-SM- Program................23

- --------------------------------------------------------------------------------
<PAGE>
LETTER TO SHAREHOLDERS

January 8, 1999

DEAR SHAREHOLDER:

I am writing to report on the activities of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") for the six months ended November 30,
1998.

At November 30, 1998, the Fund's net asset value ("NAV") was $12.93 per share,
as compared to $16.36 on May 31, 1998. Total net assets were $109,041,631 at
November 30, 1998.

PERFORMANCE: HURT BY BRAZIL, ASIA, RUSSIA

For the six months ended November 30, 1998, the Fund's total return, based on
NAV, was -21.0%, versus -16.4% for the Morgan Stanley Capital International
Emerging Markets Free Index ("EMF").

The Fund's underperformance of the EMF during this period was primarily due to
my approach to three regions:

- - Brazil. Stock selection in Brazil was unfavorable due to the Brazilian
market's poor returns throughout 1998, particularly during the summer. Telecom
stocks, which are among the most prominent and liquid names in Brazil, were
hit especially hard. One of these was Telecomunicacoes de Sao Paulo S.A.
("Telesp"), the wireline service provider in the state of Sao Paulo and the
Fund's second-largest holding.

- - Asia. Since becoming Chief Investment Officer of the Fund in 1997, I have
chosen to have little exposure to Asian telecom stocks. This was negative for
performance in light of the recent major rally beginning in September, which,
I feel, had little fundamental basis. Telecom and other infrastructure-related
stocks, furthermore, were not among the main beneficiaries of the Asian rally.
By contrast, banks and real estate shares have done very well.

- - Russia. Given the severe problems in Russia (which turned out to be the
world's worst-performing equity market in 1998), my decision to hold positions
in what proved to be weak telecom stocks was subtractive to returns.

A conspicuously positive contributor to performance was the extraordinary rise
of Global TeleSystems Group, Inc. ("GTS"), which I profiled in the Fund's
previous report. GTS is a young company that provides a broad range of
telecommunications services throughout Western and Central Europe and does
business in the former Soviet Union as well. The Fund initially bought its
shares in a private equity placement in 1994 at $7.15 per share. Following GTS's
initial public offering at $20 per share in February 1998, the stock now trades
at nearly $60. Investors (myself included) continue to regard the company's
prospects with great enthusiasm, and it remains the Fund's largest single
position.

EMERGING MARKET EQUITIES: THE VOLATILITY IS NOT YET OVER

At some point in our lives, we have all seen signs of progress derailed:
highways that abruptly end, bridges laid bare and incomplete, passenger
terminals occupied only by pigeons and falling water. At some point in the
future, you know that the roads will be finished, the bridges will span their
gaps and the terminals will come alive with people en route to their
destinations. But not now.

- --------------------------------------------------------------------------------
1
<PAGE>
LETTER TO SHAREHOLDERS

Such is the case in many of the emerging world's equity markets. A period of
high investor optimism and virtually unrestrained growth in the early '90s began
to succumb in 1997 to a wave of political and macroeconomic problems in Asia. In
1998, the wave swept through Russia, Latin America and other emerging markets,
dealing them devastating--if not quite fatal--blows. Their economies contracted,
many of their stock markets collapsed and major building projects begun with
expectations of uninterrupted growth were curtailed or abandoned entirely.

While some have voiced the opinion that 1998's lows in emerging equities may
have cleared the way for a much-hoped-for recovery, there is ample evidence to
suggest that investors should be prepared for renewed volatility through at
least 1999:

- - One sign that the worst may not yet be over is the close correlation between
weak commodity prices and emerging equities' poor performance. This is not
surprising, in that many emerging economies are major producers of primary
products and derive significant foreign exchange inflows from their export.
With the benchmark CRB commodity-price index at a 21-year low and with few
signs of an upturn, investor enthusiasm for emerging market equities of any
flavor remains low and capital inflows into them are expected to fall sharply
in 1999.

- - Further undercutting emerging nations' economic prospects is significant
overcapacity in several key cyclical industries (e.g., cement, steel, oil,
petrochemicals). With corporate earnings weakening in the U.S., growth slowing
in Europe and domestic demand in emerging nations effectively halted, it is
unlikely that global growth will be strong enough to use up the excess
capacity. To date, in fact, exports from emerging markets have failed to grow
as anticipated. More likely, we will see commodity prices (and, thus, investor
confidence) continue to decline.

- - There also is the important question of how much further the U.S. is willing
or able to prop up the many ailing emerging nations that depend on its own
economic buoyancy. Although the U.S. stock market has proved resilient thus
far after expectations of earnings shortfalls were recently announced by a
growing number of major corporations, it cannot remain so much longer.
When--not if--the bubble bursts and U.S. stocks correct to some semblance of
normalcy, it likely will deal a telling blow to the emerging economies that
depend on it to keep their respective markets afloat.

I do not believe that all is gloom and doom, however. Current account surpluses
are growing in a number of developing countries. The recent multi-stage
reduction in U.S. interest rates by the Federal Reserve, along with new lending
programs by the International Monetary Fund, has helped to make much-needed
credit available to emerging nations (even if at a relatively high fiscal and
social cost).

These and other factors have resulted in powerful near-term rallies in several
emerging markets, including Asia, Latin America and, to some extent, Europe, the
Middle East and Africa. Longer-term, though, the sustainability of these rallies
is questionable.

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2
<PAGE>
LETTER TO SHAREHOLDERS

PORTFOLIO STRUCTURE: HIGHLY DEFENSIVE

TOP 10 HOLDINGS, BY ISSUER*

<TABLE>
<CAPTION>
% OF
HOLDING COUNTRY NET ASSETS
--------------------- -------------- ---------------
<C> <S> <C> <C>
1. GTS Europe 8.3
2. Telesp Brazil 6.9
3. OTE Greece 6.6
4. Telefonica Spain 5.9
5. Telefonos de Mexico Mexico 5.7
6. CTC Chile 3.8
7. Millicom Intl. Global
Cellular 3.7
8. CEI Citicorp Hldgs. Argentina 3.6
9. Portugal Telecom Portugal 2.9
10. Camuzzi Argentina Argentina 2.8
</TABLE>

* Company names are abbreviations of those found in
the chart on page 8.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
COUNTRY BREAKDOWN (AS A % OF NET ASSETS)
Europe 8.30%
<S> <C>
Global 5.51%
Greece 7.67%
India 4.19%
Israel 3.72%
Mexico 5.69%
South Korea 3.10%
Cash & Other Assets 14.27%
Other* 20.47%
Spain 5.87%
Argentina 8.40%
Brazil 6.88%
Chile 5.93%
* Other includes Central Europe, Czech Republic, Hong Kong, Hungary, Indonesia, Peru, Philippines, Poland,
Portugal, Russia,
Singapore and Venezuela.
</TABLE>

In short, there are dynamic and incredibly volatile forces in the global
macroeconomic environment that work both for and against any near-term recovery
by emerging equity markets. That the recovery will take place is certain. The
roads will be built. The bridges will span their gulfs. Passengers will reach
their destinations. The key question--as always--is, "When?" Its companion, of
course, is, "What to do about it in the meantime?"

My own plan is to continue to take a highly defensive stance in managing the
Fund. I maintain the Fund's cash position, for example, at a fairly high level
(I.E., about 9% of assets). In today's investment environment, marked by wild
and unpredictable swings during the course of a single day, I consider it most
prudent to err on the side of caution.

As for individual stocks, I am emphasizing well-managed companies with excellent
franchises, whose share prices have been undeservedly beaten down. Many of
these, accordingly, offer excellent potential for longer-term appreciation.

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3
<PAGE>
LETTER TO SHAREHOLDERS

HELLENIC TELECOMMUNICATION ORGANIZATION S.A.

One company that begs a close look is Hellenic Telecommunication Organization
S.A. ("OTE"), Greece's national telecommunications operator. While Western
European telecommunications stocks and the Greek market in particular enjoyed a
banner year in 1998, OTE's share price did not follow suit. I see considerable
reason for optimism going forward, however:

- - Greece's teledensity, or penetration of the population, stands at a relatively
low 52%. This suggests ample room for OTE to grow simply to meet existing
demand.

- - Historically inefficient, OTE stands to reap big gains in productivity (and,
hence, profitability) via corporate restructuring. The installation of new
management in 1998 was a major step in this direction, and has already
generated results.

- - OTE is committed to a substantial capital investment program that should bring
it up to European telecommunications standards in short order. It has embarked
on an ambitious program of network digitalization, which should rise from 50%
today to 90% by mid-1999.

- - Management is emphasizing expansion into high-growth areas such as mobile
telephony, as well as value-added services such as call waiting and call
forwarding.

- - Growth at home will be enhanced by international acquisitions as OTE builds
itself into a regional power. In addition to its existing equity stake in
Telecom Serbia, OTE is expected to enlarge its Balkan presence by buying into
major carriers in Romania and Bulgaria.

All in all, I see OTE as very well-positioned to achieve superior growth in
revenues and profitability over the next few years. The Fund should benefit
accordingly.

SPT TELECOM A.S.

Another emerging telecom company to watch is SPT Telecom a.s. ("SPT"), the
dominant telecom provider in the Czech Republic.

The key to SPT's future growth and competitive position is its cellular
operations. While the domestic fixed line business has slowed in response to the
country's recession, cellular penetration has increased and has considerable
room to grow. Currently, for example, cellular teledensity in the Czech Republic
is just 8% and is expected to grow to at least 24% by 2001. SPT should capture
much of this growth.

It's worth noting in this context that cellular has proven to be relatively
recession-proof. A review of Asian cellular markets following that region's
economic crisis, for example, suggests that cellular subscriber growth continues
at healthy levels even in periods of economic stagnation or decline. There is
every reason to expect the same scenario to play out in the Czech marketplace,
with SPT being a primary beneficiary.

I also like SPT for several other reasons. It benefits substantially from a
recent re-balancing of tariffs, whose net effect will be a 35% increase in
monthly rental fees and a 25% increase in local call charges; its efficiency
levels are among the highest in the European telecom universe; and its share
price remains attractively valued.

- --------------------------------------------------------------------------------
4
<PAGE>
LETTER TO SHAREHOLDERS

OUTLOOK: MORE INVESTOR CONFIDENCE NEEDED

As I see it, the immediate prospects for emerging equity markets in general (and
telecom equities in particular) largely depend on the restoration of investor
confidence in the asset class. This task is daunting and will take substantial
efforts by the private and public sectors to get their respective houses in
order. Doing so will require major concessions on each part and a continued
willingness by the world's financial powers to support the transition to a more
consistent and predictable global economic environment.

The following are a few steps that, I believe, will help to make emerging
equities more attractive to a wider universe of investors:

- - Publicly traded companies in developing nations urgently need to improve
disclosure of their financial condition and strategic plans. This should serve
to increase transparency between companies operating in emerging markets and
their more developed counterparts. When investors can arrive at consistent
valuations and risk profiles, based on apples-to-apples comparisons, they will
be more willing to return to the emerging markets and provide them with the
growth capital they require.

- - Emerging industries must also be willing to accept at least some measure of
transnational supervision and exposure to the more proven management techniques
that large, successful international companies can bring to their operations.

- - Finally, emerging enterprises must appreciate that investors need to be
adequately rewarded if they are to assume the risks associated with emerging
markets investing. Companies run as private fiefdoms and with managements
insufficiently motivated to enhance shareholder value will soon find
themselves out of the international capital loop, and, perhaps shortly
thereafter, even out of business.

As it likely will take years for these and other necessary changes to take
effect, the emerging markets should continue to exhibit higher-than-normal
volatility for some time. Nonetheless, I maintain my fundamental conviction that
selective investment in emerging equities will prove rewarding for the long-term
investor. Experience has shown that volatility often breeds opportunity for the
thoughtful and patient investor who is willing to look past, rather than merely
react to, day-to-day events. As always, I and my emerging markets colleagues at
BEA Associates remain focused on the former, with the singular goal of providing
our investors with the returns they should rightfully expect to receive.

- --------------------------------------------------------------------------------
5
<PAGE>
LETTER TO SHAREHOLDERS

I would like to close my remarks by noting an important development. This past
October, the Directors of the Fund proposed and approved a repurchase program to
buy back up to 15% of the Fund's outstanding common stock. The Directors
strongly believed in the appropriateness of such a move, given that the discount
of the Fund's share price to its net asset value had widened to compellingly
attractive levels. I will be able to discuss the progress made in this direction
in my next semi-annual report.

Respectfully,

[SIGNATURE]
Richard W. Watt
President and Chief Investment Officer *

FROM BEA ASSOCIATES:

I. We wish to remind shareholders whose shares are registered in their own name
that they automatically participate in the Fund's dividend reinvestment
program which is known as the InvestLink-SM- Program (the "Program"). The
Program can be of value to shareholders in maintaining their proportional
ownership interest in the Fund in an easy and convenient way. A shareholder
whose shares are held in the name of a broker/dealer or nominee should
contact the Fund's Transfer Agent for details about participating in the
Program. The Program also provides for additional share purchases. The
Program is described on pages 23 through 25 of this report.

II.Many services provided to the Fund and its shareholders by BEA Associates
("BEA") and the Fund's service providers rely on the functioning of their
respective computer systems. Many computer systems cannot distinguish the
year 2000 from the year 1900, with resulting potential difficulty in
performing various calculations (the "Year 2000 Issue"). The Year 2000 Issue
could potentially have an adverse impact on the handling of security trades,
the payment of interest and dividends, pricing, account services and other
Fund operations.

BEA recognizes the importance of the Year 2000 Issue and is taking appropriate
steps necessary in preparation for the year 2000. At this time, there can be
no assurance that these steps will be sufficient to avoid any adverse impact
on the Fund nor can there be any assurance that the Year 2000 Issue will not
have an adverse effect on the Fund's investments or on global markets or
economies, generally.

BEA anticipates that its systems will be adapted in time for the year 2000.
BEA is seeking assurances that comparable steps are being taken by the Fund's
other major service providers. BEA will be monitoring the Year 2000 Issue in
an effort to ensure appropriate preparation.

- --------------------------------------------------------------------------------
* Richard W. Watt, who is a Managing Director of BEA Associates, is primarily
responsible for management of the Fund's assets. Mr. Watt has served the Fund in
such capacity since January 1, 1997. He joined BEA Associates on August 2, 1995.
Mr. Watt formerly was associated with Gartmore Investment Limited in London,
where he was head of emerging markets investments and research. Before joining
Gartmore Investment Limited in 1992, Mr. Watt was a Director of Kleinwort Benson
International Investments in London, where he was responsible for research,
analysis and trading of equities in Latin America and other regions. Mr. Watt is
President, Chief Investment Officer and a Director of the Fund. He also is
President, Chief Investment Officer and a Director of The Brazilian Equity Fund,
Inc., The Chile Fund, Inc., The Emerging Markets Infrastructure Fund, Inc., The
First Israel Fund, Inc., The Latin America Equity Fund, Inc., The Latin America
Investment Fund, Inc. and The Portugal Fund, Inc.

- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

PORTFOLIO SUMMARY - AS OF NOVEMBER 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS

<S> <C> <C>
November 30, 1998 May 31, 1998
Cellular Communications 15.23% 17.89%
Electric-Integrated 1.87% 3.16%
Electronics 2.18% 0.05%
Investment & Holding Companies 5.35% 2.74%
Local and/or Long Distance Telephone
Service 30.81% 27.57%
Oil & Gas 4.76% 3.12%
Radio/Television 2.01% 3.38%
Telecommunications 19.05% 17.88%
Utilities 0.00% 2.50%
Other 3.76% 4.41%
Cash & Cash Equivalents 14.98% 17.30%
</TABLE>

GEOGRAPHIC ASSET BREAKDOWN

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS

<S> <C> <C>
NOVEMBER 30, 1998 May 31, 1998
Asia 14.63% 5.98%
Eastern Europe 6.91% 27.68%
Europe 25.84% 5.71%
Latin America 29.12% 33.28%
Middle East 3.72% 3.32%
North America 0.00% 2.52%
Global 5.51% 4.41%
Cash & Cash Equivalents 14.27% 17.10%
</TABLE>

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7
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

PORTFOLIO SUMMARY - AS OF NOVEMBER 30, 1998 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SUMMARY OF SECURITIES BY COUNTRY/REGION

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
AS A PERCENT OF NET ASSETS

<S> <C> <C>
November 30, 1998 May 31, 1998
Argentina 8.40% 5.29%
Brazil 6.88% 15.45%
Canada 0.00% 2.52%
Chile 5.93% 2.02%
Europe 8.30% 9.24%
Greece 7.67% 3.25%
Hong Kong 3.52% 2.13%
Hungary 2.77% 4.27%
India 4.19% 3.80%
Israel 3.72% 3.32%
Mexico 5.69% 4.17%
Portugal 2.91% 0.00%
Russia 1.08% 10.50%
South Korea 3.10% 0.00%
Spain 5.87% 0.00%
Venezuela 0.68% 5.53%
Global 5.51% 4.41%
Other 9.51% 7.00%
</TABLE>

TOP 10 HOLDINGS, BY ISSUER

<TABLE>
<CAPTION>
Percent of Net
Holding Sector Country/Region Assets
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
1. Global TeleSystems Group, Inc. Cellular Communications Europe 8.3
- --------------------------------------------------------------------------------------------------------------------------------
2. Telecomunicacoes de Sao Paulo S.A. Local and/or Long Distance
Telephone Service Brazil 6.9
- --------------------------------------------------------------------------------------------------------------------------------
3. Hellenic Telecommunication Organization S.A. Telecommunications Greece 6.6
- --------------------------------------------------------------------------------------------------------------------------------
4. Telefonica S.A. Local and/or Long Distance
Telephone Service Spain 5.9
- --------------------------------------------------------------------------------------------------------------------------------
5. Telefonos de Mexico, S.A. de C.V. Local and/or Long Distance
Telephone Service Mexico 5.7
- --------------------------------------------------------------------------------------------------------------------------------
6. Compania de Telecomunicaciones de Chile S.A. Local and/or Long Distance
Telephone Service Chile 3.8
- --------------------------------------------------------------------------------------------------------------------------------
7. Millicom International Cellular S.A. Cellular Communications Global 3.7
- --------------------------------------------------------------------------------------------------------------------------------
8. CEI Citicorp Holdings S.A. Investment & Holding
Companies Argentina 3.6
- --------------------------------------------------------------------------------------------------------------------------------
9. Portugal Telecom, S.A. Telecommunications Portugal 2.9
- --------------------------------------------------------------------------------------------------------------------------------
10. Camuzzi Argentina S.A. Oil & Gas Argentina 2.8
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
8
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

SCHEDULE OF INVESTMENTS - NOVEMBER 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
<S> <C> <C>
- --------------------------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-84.73%
EQUITY OR EQUITY-LINKED SECURITIES OF TELECOMMUNICATION COMPANIES
IN EMERGING COUNTRIES-60.58%
ARGENTINA-3.64%
CEI Citicorp Holdings S.A., Class B
(Cost $4,767,037)...................... 1,201,596 $ 3,965,822
-----------
BRAZIL-6.88%
Telecomunicacoes de Sao Paulo S.A. ON... 5,469,195 603,438
Telecomunicacoes de Sao Paulo S.A. PN... 40,623,690 6,900,852
-----------
TOTAL BRAZIL (Cost $6,942,435)......................... 7,504,290
-----------
CHILE-3.77%
Compania de Telecomunicaciones de Chile
S.A. ADR##............................. 163,418 3,789,255
Compania de Telecomunicaciones de Chile
S.A., Class A.......................... 23,234 135,050
Compania de Telecomunicaciones de Chile
S.A., Class B.......................... 48,195 185,385
-----------
TOTAL CHILE (Cost $2,884,104).......................... 4,109,690
-----------
CZECH REPUBLIC-1.59%
SPT Telecom a.s. (Cost $1,305,825)...... 117,885 1,735,706
-----------
EUROPE-8.30%
Global TeleSystems Group, Inc. (Cost
$3,030,674)............................ 208,518 9,050,963
-----------
GREECE-7.67%
Hellenic Telecommunication Organization
S.A. GDR+,++........................... 576,807 7,216,951
Panafon Hellenic Telecom S.A.+.......... 29,000 519,713
STET Hellas Telecommunications S.A.
ADR+................................... 18,200 632,450
-----------
TOTAL GREECE (Cost $7,276,269)......................... 8,369,114
-----------

<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>

HONG KONG-3.05%
Asia Satellite Telecommunications
Holdings Ltd........................... 690,070 $ 1,140,759
China Telecom (Hong Kong) Ltd. Class
H+..................................... 1,095,415 2,185,737
-----------
TOTAL HONG KONG (Cost $3,264,158)...................... 3,326,496
-----------
HUNGARY-2.77%
Magyar Tavkozlesi Rt. ADR## (Cost
$2,887,394)............................ 110,445 3,016,529
-----------
INDIA-4.19%
Mahanagar Telephone Nigam Ltd.++........ 233,500 2,469,262
Videsh Sanchar Nigam Ltd. GDR++......... 205,200 2,098,170
-----------
TOTAL INDIA (Cost $4,940,705).......................... 4,567,432
-----------
INDONESIA-0.42%
PT Indosat ADR (Cost $457,844).......... 32,900 460,600
-----------
ISRAEL-1.87%
Geotek Communications, Inc., Convertible
Preferred Series M, 8.50%*+............ 100 0
Nexus Telecommunication Systems Ltd.+... 170,784 533,700
Tadiran Telecommunications Ltd.......... 14,600 285,613
Tadiran Telecommunications Ltd. ADR..... 34,000 1,217,625
-----------
TOTAL ISRAEL (Cost $2,829,162)......................... 2,036,938
-----------
MEXICO-5.69%
Telefonos de Mexico, S.A. de C.V. ADR##
(Cost $6,192,895)...................... 133,270 6,205,384
-----------
PERU-0.68%
Telefonica del Peru S.A. ADR (Cost
$739,270).............................. 50,000 740,625
-----------
</TABLE>

- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES-2.05%
Philippine Long Distance Telephone Co.
ADR (Cost $2,165,257).................. 85,200 $ 2,231,175
-----------
RUSSIA-1.08%
Independent Network Television*......... 1,000,000 1,000,000
PLD Telekom, Inc.+##.................... 69,116 174,950
-----------
TOTAL RUSSIA (Cost $1,430,304)......................... 1,174,950
-----------
SOUTH KOREA-2.27%
SK Telecom Co. Ltd. (Cost $2,502,846)... 240,250 2,477,578
-----------
VENEZUELA-0.68%
Venworld Telecommunications+=/= (Cost
$2,531,383)............................ 125,947 739,073
-----------
GLOBAL-3.98%
International Wireless Communications,
Inc., Series D*+....................... 220,120 0
International Wireless Communications,
Inc., Series F*+....................... 15,440 0
International Wireless Communications,
Inc., Warrants (expiring 12/18/98)*+... 1,240 0
International Wireless Communications,
Inc., Warrants (expiring 08/17/07)*+... 1 0
Millicom International Cellular
S.A.+##................................ 119,735 3,996,156
Telesoft Partners Ltd.*=/=#............. 375,000 340,246
-----------
TOTAL GLOBAL (Cost $4,630,446)......................... 4,336,402
-----------
TOTAL EMERGING COUNTRIES
(Cost $60,778,008).................................... 66,048,767
-----------
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>

EQUITY SECURITIES OF TELECOMMUNICATION COMPANIES IN DEVELOPED
COUNTRIES-9.87%
CENTRAL EUROPE-1.09%
Central European Media Enterprises Ltd.
(Cost $4,578,326)...................... 183,000 $ 1,189,500
-----------
PORTUGAL-2.91%
Portugal Telecom, S.A. (Cost
$3,334,013)............................ 73,000 3,170,142
-----------
SPAIN-5.87%
Telefonica S.A.......................... 78,400 3,683,227
Telefonica S.A. ADR..................... 19,500 2,717,813
-----------
TOTAL SPAIN (Cost $6,098,422).......................... 6,401,040
-----------
TOTAL DEVELOPED COUNTRIES
(Cost $14,010,761).................................... 10,760,682
-----------
EQUITY SECURITES OF COMPANIES PROVIDING OTHER ESSENTIAL SERVICES IN
THE DEVELOPMENT OF AN EMERGING COUNTRY'S INFRASTRUCTURE-14.28%
ARGENTINA-4.76%
Camuzzi Argentina S.A.*+................ 1,383,478 3,054,742
Sodigas del Sur S.A.*................... 421,485 1,003,068
Sodigas Pampeana S.A.*.................. 583,264 1,136,810
-----------
TOTAL ARGENTINA (Cost $3,032,673)...................... 5,194,620
-----------
BRAZIL-0.00%
Companhia Vale do Rio Doce PNA (Cost
$146).................................. 10 146
-----------
CHILE-1.45%
Chilectra S.A.++........................ 44,615 249,794
Compania de Consumidores de Gas de
Santiago S.A........................... 57,580 172,266
Compania General de Electricidad S.A.... 89,822 293,680
</TABLE>

- --------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>
CHILE (CONTINUED)
Cristalerias de Chile S.A............... 61,242 $ 307,551
Empresa Electrica Pehuenche S.A......... 250,767 120,574
Empresa Nacional de Electricidad S.A.... 600,000 212,843
Enersis S.A............................. 490,000 229,319
-----------
TOTAL CHILE (Cost $1,799,201).......................... 1,586,027
-----------
HONG KONG-0.47%
Hutchison Whampoa Limited (Cost
$530,820).............................. 72,328 513,760
-----------
ISRAEL-1.85%
K.T. Concord Venture Fund L.P.+=/=#..... 250,000 222,539
PEC Israel Economic Corp.+.............. 74,620 1,795,544
-----------
TOTAL ISRAEL (Cost $2,111,400)......................... 2,018,083
-----------
PERU-0.86%
Ontario-Quinta A.V.V.* (Cost
$1,054,681)............................ 1,026,885 937,164
-----------
POLAND-1.47%
Elektrim Spolka Akcyjna S.A. (Cost
$1,793,760)............................ 189,947 1,598,004
-----------
SINGAPORE-1.35%
Natsteel Electronics Ltd................ 404,000 871,925
Venture Manufacturing (Singapore)
Ltd.................................... 156,000 595,817
-----------
TOTAL SINGAPORE (Cost $1,413,318)...................... 1,467,742
-----------
SOUTH KOREA-0.83%
Samsung Electronics Co. Ltd. (Cost
$817,302).............................. 17,000 908,668
-----------
<CAPTION>
No. of Value
Description Shares (Note A)
- --------------------------------------------------------------------
<S> <C> <C>

GLOBAL-1.24%
Emerging Markets Ventures, L.P.+#=/=
(Cost $1,450,131)...................... 1,450,088 $ 1,350,034
-----------
TOTAL OTHER ESSENTIAL SERVICES (Cost $14,003,432)......
15,574,248
-----------
TOTAL EQUITY OR EQUITY-LINKED SECURITIES (Cost
$88,792,201).......................................... 92,383,697
-----------
FIXED RATE INVESTMENT-0.29%
GLOBAL-0.29%
<CAPTION>
Par (000)
-------------
<S> <C> <C>
International Wireless Communications,
Inc., Senior Secured Notes,
14.00%-25.00%, 08/17/02*
(Cost $499,022) (a).................... USD 385 318,659
-----------
SHORT-TERM INVESTMENTS-0.71%
CHILEAN INFLATION-ADJUSTED TIME DEPOSITS-0.57%
<CAPTION>
Units (000)
-------------
<S> <C> <C>
Banco Bice, 9.00%**, 01/25/99........... CLP 1 34,192
Banco Bice, 9.00%**, 01/26/99........... 3 79,533
Banco Citibank, 15.25%**, 12/29/98...... 4 133,494
Banco Citibank, 10.50%**, 01/12/99...... 1 29,918
Banco Citibank, 9.40%**, 01/18/99....... 2 71,104
Banco Security, 9.50%**, 01/18/99....... 9 271,396
-----------
TOTAL CHILEAN INFLATION-ADJUSTED TIME DEPOSITS (Cost
$625,308)............................................. 619,637
-----------
CHILEAN MUTUAL FUNDS-0.14%
<CAPTION>
No. of
Shares
-------------
<S> <C> <C>
Bice Manager Investment Fund............ 2,769 7,495
</TABLE>

- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

TOTAL INVESTMENTS-85.73%
(Cost $90,071,476) (Notes A,D)........................ 93,479,904
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES-14.27%.................................... 15,561,727
-----------
NET ASSETS-100.00%..................................... $109,041,631
-----------
-----------
- ---------------------------------------------------------
* Not readily marketable security.
** Effective yield on the date of purchase.
+ Security is non-income producing.
++ SEC Rule 144A security. Such securities are traded
only among "qualified institutional buyers."
=/= Restricted security, not readily marketable (See Note
F).
# As of November 30, 1998, the Fund committed to
investing an additional $2,599,912, $750,000 and
$875,000 in Emerging Markets Ventures, L.P., K.T.
Concord Venture Fund L.P. and Telesoft Partners Ltd.,
respectively.
## Security or a portion thereof is out on loan.
(a) As of March 31, 1998, this investment ceased accruing
interest.
ADR American Depositary Receipts.
CLP Chilean Pesos.
GDR Global Depositary Receipts.
ON Ordinary Shares.
PN Preferred Shares.
PNA Preferred Shares, Class A.
USD United States Dollars.
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES - NOVEMBER 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost $90,071,476)
(Note A)............................... $ 93,479,904
Cash (including $339,209 of foreign
currencies with a cost of $340,052)
(Note A)............................... 10,299,924
Collateral received for securities
loaned (Note A)........................ 7,286,644
Receivables:
Investments sold...................... 7,543,764
Dividends............................. 133,590
Interest.............................. 8,700
Prepaid expenses and other assets....... 3,782
------------
Total Assets............................ 118,756,308
------------

LIABILITIES
Payables:
Payable upon return of securities
loaned (Note A)...................... 7,286,644
Investments purchased................. 2,064,066
Investment advisory fee (Note B)...... 214,137
Administration fees (Note B).......... 45,295
Other accrued expenses................ 104,535
------------
Total Liabilities....................... 9,714,677
------------
NET ASSETS (applicable to 8,434,919
shares of common stock outstanding)
(Note C)............................... $109,041,631
------------
------------

NET ASSET VALUE PER SHARE ($109,041,631
DIVIDED BY 8,434,919)................. $12.93
------------
------------

NET ASSETS CONSIST OF
Capital stock, $0.001 par value;
8,434,919 shares issued and outstanding
(100,000,000 shares authorized)........ $ 8,435
Paid-in capital......................... 116,183,960
Accumulated net investment loss......... (269,168)
Accumulated net realized loss on
investments and foreign currency
related transactions................... (10,288,986)
Net unrealized appreciation in value of
investments and translation of other
assets and liabilities denominated in
foreign currencies..................... 3,407,390
------------
Net assets applicable to shares
outstanding............................ $109,041,631
------------
------------
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
13
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED NOVEMBER 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME
Income (Note A):
Dividends............................. $ 534,465
Interest.............................. 517,371
Less: Foreign taxes withheld.......... (98,154)
------------
Total Investment Income............... 953,682
------------
Expenses:
Investment advisory fees (Note B)..... 717,529
Administration fees (Note B).......... 106,953
Custodian fees........................ 102,740
Audit and legal fees.................. 77,615
Accounting fees....................... 46,186
Printing.............................. 40,611
Transfer agent fees................... 16,470
Directors' fees....................... 15,542
Insurance............................. 9,399
NYSE listing fees..................... 8,266
Other................................. 9,967
Brazilian taxes (Note A).............. 71,572
------------
Total Expenses........................ 1,222,850
------------
Net Investment Loss................... (269,168)
------------

NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY
RELATED TRANSACTIONS
Net realized loss from:
Investments........................... (24,776,758)
Foreign currency related
transactions......................... (200,662)
Net change in unrealized appreciation in
value of investments and translation of
other assets and liabilities
denominated in foreign currencies...... (3,734,306)
------------
Net realized and unrealized loss on
investments and foreign currency
related transactions................... (28,711,726)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................ $(28,980,894)
------------
------------
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
For the Six
Months
Ended For the
November 30, Fiscal Year
1998 Ended
(unaudited) May 31, 1998
<S> <C> <C>
-----------------------------

DECREASE IN NET ASSETS
Operations:
Net investment loss................... $ (269,168 ) $ (482,714 )
Net realized gain/(loss) on
investments and foreign currency
related transactions................. (24,977,420 ) 37,528,837
Net change in unrealized appreciation
in value of investments and
translation of other assets and
liabilities denominated in foreign
currencies........................... (3,734,306 ) (49,357,447 )
------------ ------------
Net decrease in net assets resulting
from operations.................... (28,980,894 ) (12,311,324 )
------------ ------------
Dividends and distributions to
shareholders:
Net investment income................. -- (789,507 )
Net realized gain on investments and
foreign currency related
transactions......................... -- (30,504,043 )
------------ ------------
Total dividends and distributions to
shareholders....................... -- (31,293,550 )
------------ ------------
Total decrease in net assets........ (28,980,894 ) (43,604,874 )
------------ ------------

NET ASSETS
Beginning of period..................... 138,022,525 181,627,399
------------ ------------
End of period........................... $109,041,631 $138,022,525
------------ ------------
------------ ------------
</TABLE>

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE>
- --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months For the Fiscal Years Ended
Ended May 31,
November 30, 1998 -------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period... $16.36 $21.53 $20.94 $19.20 $20.90 $14.95
----------------- -------- -------- -------- -------- --------
Net investment income/(loss)........... (0.03) (0.06) 0.10 0.27 0.11 0.13
Net realized and unrealized gain/(loss)
on investments and foreign currency
related transactions.................. (3.40) (1.40) 2.86 1.91 0.01 7.03+
----------------- -------- -------- -------- -------- --------
Net increase/(decrease) in net assets
resulting from operations............. (3.43) (1.46) 2.96 2.18 0.12 7.16
----------------- -------- -------- -------- -------- --------
Dividends and distributions to
shareholders:
Net investment income................ -- (0.09) (0.27) (0.04) (0.04) (0.15)
Net realized gain on investments and
foreign currency related
transactions........................ -- (3.62) (2.10) (0.40) (1.78) (1.06)
----------------- -------- -------- -------- -------- --------
Total dividends and distributions to
shareholders.......................... -- (3.71) (2.37) (0.44) (1.82) (1.21)
----------------- -------- -------- -------- -------- --------
Net asset value, end of period......... $12.93 $16.36 $21.53 $20.94 $19.20 $20.90
----------------- -------- -------- -------- -------- --------
----------------- -------- -------- -------- -------- --------
Market value, end of period............ $10.563 $13.000 $17.375 $17.375 $17.750 $22.750
----------------- -------- -------- -------- -------- --------
----------------- -------- -------- -------- -------- --------
Total investment return(a)............. (18.75)% (4.57)% 14.31% 0.21% (13.94)% 64.74%
----------------- -------- -------- -------- -------- --------
----------------- -------- -------- -------- -------- --------

RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000
omitted).............................. $109,042 $138,023 $181,627 $176,628 $161,925 $176,253
Ratio of expenses to average net
assets, including taxes............... 2.10%(b)(c) 2.32%(b) 1.90 (b) 1.77% 1.89% 1.81%
Ratio of net investment income/(loss)
to average net assets................. (0.46)%(c) (0.29)% 0.52% 1.40% 0.53% 0.63%
Portfolio turnover rate................ 111.78% 162.58% 42.14% 27.71% 14.29% 43.98%

For the Period
June 25, 1992*
through
May 31, 1993
<S> <C><C>

PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period... $13.84**
--------------
Net investment income/(loss)........... 0.16
Net realized and unrealized gain/(loss)
on investments and foreign currency
related transactions.................. 1.20
--------------
Net increase/(decrease) in net assets
resulting from operations............. 1.36
--------------
Dividends and distributions to
shareholders:
Net investment income................ (0.14)
Net realized gain on investments and
foreign currency related
transactions........................ (0.11)
--------------
Total dividends and distributions to
shareholders.......................... (0.25)
--------------
Net asset value, end of period......... $14.95
--------------
--------------
Market value, end of period............ $14.500
--------------
--------------
Total investment return(a)............. 5.85%
--------------
--------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000
omitted).............................. $125,338
Ratio of expenses to average net
assets, including taxes............... 1.99%(c)
Ratio of net investment income/(loss)
to average net assets................. 2.02%(c)
Portfolio turnover rate................ 22.55%
</TABLE>

- ---------------------------------------------------------------------------
* Commencement of investment operations.
** Initial public offering price of $15.00 per share less underwriting
discount of $1.05 per share and offering expenses of $0.11 per share.
+ Includes a $0.03 per share increase to the Fund's net asset value per
share resulting from the antidilutive impact of shares issued pursuant
to the Fund's automatic Dividend Reinvestment Plan in January 1994.
(a) Total investment return at market value is based on the changes in
market price of a share during the period and assumes reinvestment of
dividends and distributions, if any, at actual prices pursuant to the
Fund's dividend reinvestment program. Total investment return does not
reflect brokerage commissions or initial underwriting discounts and
has not been annualized.
(b) Ratios shown are inclusive of Brazilian transaction and Chilean
repatriation taxes, if any. If such taxes had not been imposed, the
ratio of expenses to average net assets would have been 1.98% for the
six months ended November 30, 1998 and 1.82% for both fiscal years
ended May 31, 1998 and May 31, 1997.
(c) Annualized.

- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------

THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE A. SIGNIFICANT ACCOUNTING POLICIES

The Emerging Markets Telecommunications Fund, Inc. (the "Fund") was incorporated
in Maryland on February 11, 1992 and commenced investment operations on June 25,
1992. The Fund is registered under the Investment Company Act of 1940, as
amended, as a closed-end, non-diversified management investment company.
Significant accounting policies are as follows:

MANAGEMENT ESTIMATES: The preparation of financial statements in accordance with
generally accepted accounting principles requires management to make certain
estimates and assumptions that may affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.

PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. All securities for which market quotations are readily
available are valued at the closing price quoted for the securities prior to the
time of determination (but if bid and asked quotations are available, at the
mean between the last current bid and asked prices). Securities that are traded
over-the-counter are valued at the mean between the current bid and the asked
prices, if available. All other securities and assets are valued at the fair
value as determined in good faith by the Board of Directors. Short-term
investments having a maturity of 60 days or less are valued on the basis of
amortized cost. The Board of Directors has established general guidelines for
calculating fair value of non-publicly traded securities. At November 30, 1998,
the Fund held 9.26% of its net assets in securities valued in good faith by the
Board of Directors with an aggregate cost of $12,654,700 and fair value of
$10,102,335. The net asset value per share of the Fund is calculated on each
business day with the exception of those days on which the New York Stock
Exchange is closed.

CASH: Deposits held at Brown Brothers Harriman & Co., the Fund's custodian, in a
variable rate account are classified as cash. At November 30, 1998, the
account's interest rate was 4.375%, which resets on a daily basis. Amounts on
deposit are generally available on the same business day.

INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date.

TAXES: No provision is made for U.S. federal income or excise taxes as it is the
Fund's intention to continue to qualify as a regulated investment company and to
make the requisite distributions to its shareholders which will be sufficient to
relieve it from all or substantially all U.S. federal income and excise taxes.

Income received by the Fund from sources within emerging countries and other
foreign countries may be subject to withholding and other taxes imposed by such
countries.

Under certain circumstances the Fund may be subject to a maximum of 36% Israeli
capital gains tax on gains derived from the sale of certain Israeli investments.

The Fund is subject to a 10% Chilean repatriation tax with respect to all
remittances from Chile in excess of original invested capital. For the six
months ended November 30, 1998, the Fund did not incur such expense.

Effective January 23, 1997, Brazil imposes a 0.20% CONTRIBUCAO SOBRE
MOVIMENTACAO FINANCIERA ("CPMF") tax that applies to most debit transactions
carried out by financial institutions. For the six months

- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
ended November 30, 1998, the Fund incurred $71,572 of such expense. Effective
January 23, 1999, the CPMF tax will expire and no longer be charged.

FOREIGN CURRENCY TRANSACTIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:

(I) market value of investment securities, assets and liabilities at the
current rate of exchange; and

(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.

The Fund does not isolate that portion of gains and losses in investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to change in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transactions balances. However, the Fund does isolate the
effect of fluctuations in foreign exchange rates when determining the gain or
loss upon the sale or maturity of foreign currency denominated debt obligations
pursuant to U.S. federal income tax regulations, with such amount categorized as
foreign exchange gain or loss for both financial reporting and income tax
reporting purposes.

Net currency gains or losses from valuing foreign currency denominated assets
and liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation/depreciation on investments, foreign currency holdings,
and other assets and liabilities denominated in foreign currencies.

Net realized foreign exchange losses represent foreign exchange gains and losses
from sales and maturities of debt securities, transactions in foreign currencies
and forward foreign currency contracts, exchange gains or losses realized
between the trade date and settlement dates on security transactions, and the
difference between the amounts of interest and dividends recorded on the Fund's
books and the U.S. dollar equivalent of the amounts actually received.

The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary income for
U.S. federal income tax purposes.

SECURITIES LENDING: The market value of securities out on loan to brokers at
November 30, 1998, was $6,828,194, for which the Fund has received cash as
collateral of $7,286,644. Such cash collateral was reinvested into an overnight
repurchase agreement with Bear, Stearns & Co. Inc., which is in turn
collateralized by U.S. Government agency securities with a value of $7,496,459.
Security loans are required at all times to have collateral at least equal to
102% of the market value of the securities on loan; however, in the event of
default or bankruptcy by the other party to the agreement, realization and/or
retention of the collateral may be subject to legal proceedings.

During the six months ended November 30, 1998, the Fund earned $1,143 in
securities lending income which is included under the caption INTEREST in the
Statement of Operations.

DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net

- --------------------------------------------------------------------------------
18
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
realized long-term capital gains in excess of net realized short-term capital
losses, including capital loss carryovers, if any. An additional distribution
may be made to the extent necessary to avoid the payment of a 4% U.S. federal
excise tax. Dividends and distributions to shareholders are recorded by the Fund
on the ex-dividend date.

On December 15, 1998, a distribution from net realized long-term capital gains
in the aggregate amount of $16,442,826, equal to $1.961 per share was declared.
The distribution is payable on January 15, 1999 to shareholders of record as of
December 31, 1998.

The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.
federal income tax purposes due to U.S. generally accepted accounting
principles/tax differences in the character of income and expense recognition.

OTHER: Some countries require governmental approval for the repatriation of
investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if there is a deterioration in a country's balance of
payments or for other reasons, a country may impose temporary restrictions on
foreign capital remittances abroad. Amounts repatriated prior to the end of
specified periods may be subject to taxes as imposed by a foreign country.

The emerging countries' securities markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United States.
A high proportion of the securities of many companies in emerging countries may
be held by a limited number of persons, which may limit the number of securities
available for investment by the Fund. The limited liquidity of emerging country
securities markets may also affect the Fund's ability to acquire or dispose of
securities at the price and time it wishes to do so.

The Fund, subject to local investment limitations, may invest up to 25% of its
assets in non-publicly traded equity securities which may involve a high degree
of business and financial risk and may result in substantial losses. Because of
the current absence of any liquid trading market for these investments, the Fund
may take longer to liquidate these positions than would be the case for publicly
traded securities. Although these securities may be resold in privately
negotiated transactions, the proceeds realized on such sales could be
significantly less than those originally paid by the Fund. Further, companies
whose securities are not publicly traded may not be subject to the disclosure
and other investor protection requirements applicable to companies whose
securities are publicly traded.

The Fund may enter into repurchase agreements ("repos") on U.S. Government
securities with primary government securities dealers recognized by the Federal
Reserve Bank of New York and member banks of the Federal Reserve System and on
securities issued by the governments of foreign countries, their
instrumentalities and with creditworthy parties in accordance with established
procedures. Repurchase agreements are contracts under which the buyer of a
security simultaneously buys and commits to resell the security to the seller at
an agreed upon price and date. Repurchase agreements are deposited with the
Fund's custodian and, pursuant to the terms of the repurchase agreement, the
collateral must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities fall below the value of the repurchase price plus accrued
interest, the Fund will require the seller to deposit additional collateral by
the next business day. If the request for additional collateral is not met, or
the seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller; collectibility of

- --------------------------------------------------------------------------------
19
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
such claims may be limited. At November 30, 1998, the Fund had no such
agreements other than the cash collateral received that was reinvested into a
repo under the Fund's securities lending program.

NOTE B. AGREEMENTS

BEA Associates ("BEA") serves as the Fund's investment adviser with respect to
all investments. As compensation for its advisory services, BEA receives from
the Fund an annual fee, calculated weekly and paid quarterly, equal to 1.25% of
the first $100 million of the Fund's average weekly net assets, 1.125% of the
next $100 million and 1.00% of amounts in excess of $200 million. For the six
months ended November 30, 1998, BEA earned $717,529 for advisory services. BEA
also provides certain administrative services to the Fund and is reimbursed by
the Fund for costs incurred on behalf of the Fund (up to $20,000 per annum). For
the six months ended November 30, 1998, BEA was reimbursed $7,020 for
administrative services rendered to the Fund.

Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is computed weekly at an
annual rate of 0.12% of the Fund's average weekly net assets. For the six months
ended November 30, 1998, BSFM earned $69,851 for administrative services.

BankBoston, N.A., Sao Paulo ("BB") and CELFIN Administradora de Fondos de
Inversion de Capital Extranjero S.A. ("Chilean administrator") serve as the
Fund's administrators with respect to Brazilian and Chilean investments,
respectively. BB is paid for its services, out of the custody fee payable to
Brown Brothers Harriman & Co., the Fund's accounting agent and custodian, a
quarterly fee based on an annual rate of 0.10% of average month end Brazilian
net assets of the Fund. In return for services rendered, the Chilean
administrator receives a fee computed monthly and paid quarterly at an annual
rate of 0.10% of the Fund's average weekly net assets in Chile, subject to
certain minimum annual fees and reimbursements for a predefined limit of their
expenses.

NOTE C. CAPITAL STOCK
The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001 par value. Of the 8,434,919 shares outstanding at November 30, 1998, BEA
owned 7,169 shares.

NOTE D. INVESTMENT IN SECURITIES

For U.S. federal income tax purposes, the cost of securities owned at November
30, 1998 was $91,729,215. Accordingly, the net unrealized appreciation of
investments (including investments denominated in foreign currencies) of
$1,750,689, was composed of gross appreciation of $14,301,176 for those
investments having an excess of value over cost and gross depreciation of
$12,550,487 for those investments having an excess of cost over value.

For the six months ended November 30, 1998, total purchases and sales of
securities, other than short-term investments, were $109,677,093 and
$102,627,524, respectively.

NOTE E. CREDIT AGREEMENT

The Fund, along with 10 other U.S. regulated investment companies for which BEA
serves as investment adviser, has a credit agreement with BankBoston, N.A. The
agreement provides that each fund is permitted to borrow an amount equal to the
lesser of $25,000,000 or 25% of the net assets of the fund. However, at no time
shall the aggregate outstanding principal amount of all loans to any of the 11
funds exceed $25,000,000. The line of credit will bear interest at (i) the
greater of the bank's prime rate or the Federal Funds Effective Rate plus 0.50%
or (ii) the Adjusted Eurodollar Rate plus 1.50%. For the six months ended
November 30, 1998, the Fund had no amounts outstanding under the credit
agreement.

- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
THE EMERGING MARKETS TELECOMMUNICATIONS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

NOTE F. RESTRICTED SECURITIES

Certain of the Fund's investments are restricted as to resale and are valued at
the direction of the Fund's Board of Directors in good faith, at fair value,
after taking into consideration available indications of value. The table below
shows the number of shares held, the acquisition dates, aggregate cost, fair
value as of November 30, 1998, share value of such securities and percent of net
assets which the securities comprise.

<TABLE>
<CAPTION>
PERCENT
NUMBER VALUE OF
OF ACQUISITION FAIR VALUE PER NET
SECURITY SHARES DATES COST AT NOVEMBER 30, 1998 SHARE ASSETS
- --------------------------------------- -------- ---------- ---- --------------------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Ventures, L.P......... 159,653 01/22/98 $ 159,6 148,$637 $ 0.93 0.14
Emerging Markets Ventures, L.P......... 3,525 03/05/98 3,658 3,282 0.93 0.00
Emerging Markets Ventures, L.P......... 586,127 05/05/98 586,127 545,685 0.93 0.50
Emerging Markets Ventures, L.P......... 361,637 07/07/98 361,637 336,685 0.93 0.31
Emerging Markets Ventures, L.P......... 42,334 08/17/98 42,334 39,413 0.93 0.14
Emerging Markets Ventures, L.P......... 296,812 10/27/98 296,812 276,332 0.93 0.25
K.T. Concord Venture Fund L.P.......... 250,000 12/08/97 252,288 222,539 0.89 0.20
Telesoft Partners Ltd.................. 125,000 07/22/97 117,078 113,416 0.91 0.11
Telesoft Partners Ltd.................. 125,000 02/05/98 117,077 113,415 0.91 0.10
Telesoft Partners Ltd.................. 125,000 06/02/98 125,000 113,415 0.91 0.10
Venworld Telecommunications............ 125,947 05/18/95 2,531,383 739,073 5.87 0.68
</TABLE>

The Fund may incur certain costs in connection with the disposition of the above
securities.

NOTE G. SHARE REPURCHASE PROGRAM

On October 21, 1998, the Fund announced that its Board of Directors has
authorized the repurchase by the Fund of up to 15% of the Fund's outstanding
common stock, for the purposes of enhancing shareholder value. The Fund's Board
has authorized management of the Fund to repurchase such shares in open market
transactions at prevailing market prices from time to time and in a manner
consistent with the Fund continuing to seek to achieve its investment
objectives. The Board's actions were taken in light of the significant discounts
at which the Fund's shares recently have been trading. It is intended both to
provide additional liquidity to those shareholders that elect to sell their
shares and to enhance the net asset value of the shares held by those
shareholders that maintain their investment. The repurchase program will be
subject to review by the Directors of the Fund. From October 21, 1998 to
November 30, 1998, the Fund did not repurchase any of its shares.

- --------------------------------------------------------------------------------
21
<PAGE>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)

On October 15, 1998, the annual meeting of shareholders of The Emerging Markets
Telecommunications Fund, Inc. (the "Fund") was held and the following matters
were voted upon:

(1) To re-elect three directors to the Board of Directors of the Fund.

<TABLE>
<CAPTION>
NAME OF DIRECTOR FOR WITHHELD NON-VOTES
- --------------------------------------- -------- ------- --------
<S> <C> <C> <C>
Dr. Enrique R. Arzac................... 5,938,285 852,815 1,643,819
Peter A. Gordon........................ 5,906,272 884,828 1,643,819
Martin M. Torino....................... 5,910,734 880,366 1,643,819
</TABLE>

In addition to the directors re-elected at the meeting, James J. Cattano, George
W. Landau, William W. Priest, Jr. and Richard W. Watt continue to serve as
directors of the Fund.

(2) To ratify the selection of PricewaterhouseCoopers LLP as independent public
accountants for the fiscal year ending May 31, 1999.

<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN NON-VOTES
- -------- ------ ------ --------
<S> <C> <C> <C>
6,708,286 47,217 35,597 1,643,819
</TABLE>

(3) To consider a shareholder proposal to have the Board of Directors implement
measures designed to enable shareholders to purchase and sell shares of the
Fund at net asset value.

<TABLE>
<CAPTION>
BROKER
FOR AGAINST ABSTAIN NON-VOTES NON-VOTES
- -------- -------- ------ --------------- --------
<S> <C> <C> <C> <C>
2,151,157 1,374,782 132,311 3,132,850 1,643,819
</TABLE>

The above resolution was approved. Since the resolution was in the form of a
recommendation only, it did not require for its passage the vote generally
required under the Fund's charter (75% of outstanding shares) to open-end the
Fund.

On October 21, 1998, the Board authorized the repurchase by the Fund of up to
15% of the Fund's outstanding common stock, for the purpose of enhancing
shareholder value. This program is currently being implemented. The Board
considered the proposal at its subsequent meeting and unanimously voted not to
implement the recommendation at this time.

- --------------------------------------------------------------------------------
22
<PAGE>
DESCRIPTION OF INVESTLINK* PROGRAM

The InvestLink Program is sponsored and administered by BankBoston, N.A., not by
The Emerging Markets Telecommunications Fund, Inc. (the "Fund"). BankBoston,
N.A. will act as program administrator (the "Program Administrator") of the
InvestLink Program (the "Program"). The purpose of the Program is to provide
interested investors with a simple and convenient way to invest funds and
reinvest dividends in shares of the Fund's common stock ("Shares") at prevailing
prices, with reduced brokerage commissions and fees.

An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.

A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.

The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of Company Common Stock in the open market. Such purchases will be made
by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the the purchase date. In all cases, transaction processing will occur
within 30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws, or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.

The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.

BankBoston, N.A., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants

- --------------------------------------------------------------------------------
23
<PAGE>
DESCRIPTION OF INVESTLINK* PROGRAM (CONTINUED)
and performs other duties relating to the Program. Each participant in the
Program will receive a statement of his account following each purchase of
Shares. The statements will also show the amount of dividends credited to such
participant's account (if applicable), as well as the fees paid by the
participant. In addition, each participant will receive copies of the Fund's
Annual Report to shareholders, proxy statements and, if applicable, dividend
income information for tax reporting purposes.

If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.

Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.

A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.

Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.

All Shares of the Fund (including any fractional share) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.

A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.

The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the
Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or

- --------------------------------------------------------------------------------
24
<PAGE>
DESCRIPTION OF INVESTLINK* PROGRAM (CONTINUED)
willful misconduct. Shares held in custody by the Program Administrator are not
subject to protection under the Securities Investors Protection Act of 1970.

The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.

While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.

Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800) 969-3364; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: BankBoston, N.A.,
InvestLink Program, P.O. Box 8040, Boston, MA 02266-8040.
- --------------
*InvestLink-SM- is a service mark of Boston EquiServe Limited Partnership.

- --------------------------------------------------------------------------------
25
<PAGE>
SUMMARY OF GENERAL INFORMATION

The Fund--The Emerging Markets Telecommunications Fund, Inc.--is a closed-end,
non-diversified management investment company whose shares trade on the New York
Stock Exchange. Its investment objective is long-term capital appreciation
through investments primarily in equity securities of telecommunications
companies in emerging countries. The Fund is managed and advised by BEA
Associates ("BEA"). BEA is a diversified asset manager, handling equity,
balanced, fixed income, international and derivative based accounts. Portfolios
include international and emerging market investments, common stocks, taxable
and non-taxable bonds, options, futures and venture capital. BEA manages money
for corporate pension and profit-sharing funds, public pension funds, union
funds, endowments and other charitable institutions and private individuals. As
of December 31, 1998, BEA managed approximately $35.3 billion in assets.

SHAREHOLDER INFORMATION

The market price is published in: THE NEW YORK TIMES (daily) under the
designation "EMTel" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "EmergMktTele". The Fund's New York Stock Exchange
trading symbol is ETF. Weekly comparative net asset value (NAV) and market price
information about The Emerging Markets Telecommunications Fund, Inc.'s shares
are published each Sunday in THE NEW YORK TIMES and each Monday in THE WALL
STREET JOURNAL and BARRON's, as well as other newspapers, in a table called
"Closed-End Funds."

THE BEA GROUP OF FUNDS

LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.beafunds.com.

<TABLE>
<S> <C>
CLOSED-END FUNDS
SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)
The Portugal Fund, Inc. (PGF)

MULTIPLE COUNTRY
The Emerging Markets Infrastructure
Fund, Inc. (EMG)
The Latin America Equity Fund, Inc.
(LAQ)
The Latin America Investment Fund, Inc.
(LAM)
FIXED INCOME
BEA Income Fund, Inc. (FBF)
BEA Strategic Global Income Fund, Inc.
(FBI)
</TABLE>

Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Emerging Markets Telecommunications
Fund, Inc. may from time to time purchase shares of its capital stock in the
open market.

- --------------------------------------------------------------------------------
<PAGE>
DIRECTORS AND CORPORATE OFFICERS

Dr. Enrique R. Arzac Director

James J. Cattano Director

Peter A. Gordon Director

George W. Landau Director

Martin M. Torino Director

William W. Priest, Jr. Chairman of the Board of Directors

Richard W. Watt Director, President and Chief
Investment Officer

Robert B. Hrabchak Investment Officer

Hal Liebes Senior Vice President

Michael A. Pignataro Chief Financial Officer and
Secretary

Rocco A. Del Guercio Vice President

INVESTMENT ADVISER

BEA Associates
One Citicorp Center
153 East 53rd Street
New York, NY 10022

ADMINISTRATOR

Bear Stearns Funds Management Inc.
245 Park Avenue
New York, NY 10167

CUSTODIAN

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109

SHAREHOLDER SERVICING AGENT

BankBoston, N.A.
P.O. Box 1865
Mail Stop 45-02-62
Boston, MA 02105-1865

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103

LEGAL COUNSEL

Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019-6099

This report, including the financial statements herein, is sent
to the shareholders of the Fund for their information without
examination by independent accountants who do not express an
opinion thereon. It is not a prospectus, circular or
representation intended for use in the purchase or sale of
shares of the Fund or of any securities mentioned in this
report.

[LOGO]

- --------------------------------------------------------------------------------
3916-SAR-11/98