MORGAN STANLEY DEAN WITTER DISCOVER & CO
SC 13G/A, 1998-02-17
FINANCE SERVICES
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                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, DC  20549

                               SCHEDULE 13G
                              (Rule 13d-102)

          INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
          TO RULES 13d-1(b) AND (c) AND AMENDMENTS THERETO FILED
                           PURSUANT TO 13d-2(b)
                           (Amendment No. 1)(1)

                      CSG Systems International, Inc.
                    ----------------------------------
                             (Name of Issuer)

                       Common Stock, $.01 par value
                    ----------------------------------
                      (Title of Class of Securities)

                                 126349109
                              --------------
                              (CUSIP Number)


                               ------------






- ------------
      (1)  The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect to the subject
class of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.

      The information required in the remained of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).




CUSIP No. 126349109                   13G                   Page 2 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley Venture Capital Fund II, L.P.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             - 0 -
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           - 0 -

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    - 0 -

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    - 0 -

12  TYPE OF REPORTING PERSON*

    PN

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 3 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley Venture Partners II, L.P.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                        5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             - 0 -
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           - 0 -

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    - 0 -

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    - 0 -

12  TYPE OF REPORTING PERSON*

    PN

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 4 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley Venture Capital II, Inc.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             108,467
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           108,467

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    108,467

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    0.4

12  TYPE OF REPORTING PERSON*

    CO

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 5 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley Capital Partners III, L.P.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             - 0 -
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           - 0 -

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    - 0 -

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    - 0 -

12  TYPE OF REPORTING PERSON*

    PN

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 6 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            MSCP III, L.P.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             1,179,896
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           1,179,896

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    1,179,896

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    4.6

12  TYPE OF REPORTING PERSON*

    PN

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 7 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley Capital Partners III, Inc.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             1,179,896
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           1,179,896

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    1,179,896

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    4.6

12  TYPE OF REPORTING PERSON*

    CO

                   *SEE INSTRUCTION BEFORE FILLING OUT!


CUSIP No. 126349109                   13G                   Page 8 of 15 Pages
- -------------------                                         ------------------

1   NAMES OF REPORTING PERSONS
    I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)

            Morgan Stanley, Dean Witter, Discover & Co.

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                      (a)  [ ]
                                                                      (b)  [ ]

3   SEC USE ONLY

4   CITIZENSHIP OR PLACE OF ORGANIZATION

    Delaware

                                       5   SOLE VOTING POWER

                                           - 0 -

                                       6   SHARED VOTING POWER
 NUMBER OF SHARES BENEFICIALLY
OWNED BY EACH REPORTING PERSON             1,866,332
             WITH:
                                       7   SOLE DISPOSITIVE POWER

                                           - 0 -

                                       8   SHARED DISPOSITIVE POWER

                                           1,866,332

9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

    1,866,332

10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
    CERTAIN SHARES*                                                        [ ]

11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

    7.3

12  TYPE OF REPORTING PERSON*

    CO

                   *SEE INSTRUCTION BEFORE FILLING OUT!


Item 1(a). Name of Issuer:

           CSG Systems International, Inc. (the "Company")

Item 1(b). Address of Issuer's Principal Executive Offices:

           5251 DTC Parkway
           Suite 625
           Englewood, Colorado 80111

Item 2(a). Name of Person Filing:

           Morgan Stanley Venture Capital Fund II, L.P. ("Capital Fund")

           Morgan Stanley Venture Partners II, L.P. ("Ventures")

           Morgan Stanley Venture Capital II, Inc. ("MSVC")

           Morgan Stanley Capital Partners III, L.P. ("Partners")

           MSCP III, L.P. ("MSCP")

           Morgan Stanley Capital Partners III, Inc. ("Capital Partners")

           Morgan Stanley, Dean Witter, Discover & Co. ("Morgan Stanley")

Item 2(b). Address of Principal Business Office or, if None, Residence:

           The address of the principal business and principal office of each
           of Capital Fund, Ventures, MSVC, Partners, MSCP, Capital Partners
           and Morgan Stanley is 1221 Avenue of the Americas, New York, New
           York 10020.

Item 2(c). Citizenship:

           The citizenship of each of Capital Fund, Ventures, MSVC, Partners,
           MSCP, Capital Partners and Morgan Stanley is Delaware.

Item 2(d). Title of Class of Securities:

           This statement relates to the Company's Common Stock, $.01 par
           value per share.

Item 2(e). CUSIP Number:

           126349109

Item 3.    If this statement is filed pursuant to Rules 13d-1(b), or
           13d-2(b), check whether the person filing is a:

           (a)   [ ]   Broker or dealer registered under Section 15 of the
                       Act,

           (b)   [ ]   Bank as defined in Section 3(a)(6) of the Act,

           (c)   [ ]   Insurance Company as defined in Section 3(a)(19) of
                       the Act,

           (d)   [ ]   Investment Company registered under Section 8 of the
                       Investment Company Act,

           (e)   [ ]   Investment Adviser registered under Section 203 of the
                       Investment Advisers Act of 1940,

           (f)   [ ]   Employee Benefit Plan, Pension Plan, Pension Fund
                       which is subject to the provisions of the Employee
                       Retirement Income Security Act of 1974 or Endowment
                       Fund; see 13d-1(b)(1)(ii)(F),

           (g)   [ ]   Parent Holding Company, in accordance Rule
                       13d-1(b)(1)(ii)(G); see Item 7,

           (h)   [ ]   Group, in accordance with Rule 13d-1(b)(1)(ii)(H).

           Not Applicable

Item 4.    Ownership.  (a) Amount Beneficially Owned:

      As described below, Capital Partners may be deemed to own
      beneficially 1,179,896 shares of Common Stock as of December 31,
      1997.  Also as described below, Morgan Stanley may be deemed to own
      beneficially 1,866,332 shares of Common Stock as of December 31,
      1997.

      MSCP has the power to vote or direct the vote and to dispose or
      direct the disposition of 1,179,896 shares of Common Stock.  Capital
      Partners, as the general partner of MSCP, controls the actions of
      MSCP.  Morgan Stanley, as the sole shareholder of Capital Partners,
      controls the actions of Capital Partners.  MSVC has the power to vote
      or direct the vote and to dispose or direct the disposition of
      108,467 shares of Common Stock.  Morgan Stanley, as the sole
      shareholder of MSVC, controls the actions of MSVC.


      Capital Fund, Ventures and Partners have ceased to own any shares of
      Common Stock as of December 31, 1997

           (b)   Percent of Class:(2)

                 Morgan Stanley Venture
                   Capital Fund II, L.P.              0.0%

                 Morgan Stanley Venture
                   Partners II, L.P.                  0.0%

                 Morgan Stanley Venture
                   Capital II, Inc.                   0.4%

                 Morgan Stanley Capital
                   Partners III, L.P.                 0.0%

                 MSCP III, L.P.                       4.6%

                 Morgan Stanley Capital
                   Partners III, Inc.                 4.6%

                 Morgan Stanley, Dean Witter,
                   Discover & Co.                     7.3%


- ------------
(2)  Based on the 25,475,032 shares of Common Stock reported to be
     outstanding in the report on Form 10-Q filed for the quarter ended
     September 30, 1997.


           (c)   Number of shares as to which such person has:

<TABLE>
<CAPTION>
==========================================================================================================
                                  (i)                 (ii)                 (iii)                 (iv)
                             Sole power to        Shared power         Sole power to         Shared power
                              vote or to          to vote or to        dispose or to      to dispose or to
                            direct the vote      direct the vote         direct the           direct the
                                                                       disposition of      disposition of
- ----------------------------------------------------------------------------------------------------------
<S>                         <C>                  <C>                   <C>                <C>
Morgan Stanley                    - 0 -                - 0 -               - 0 -                - 0 -
Venture Capital
Fund II, L.P.
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley                    - 0 -                - 0 -               - 0 -                - 0 -
Venture Partners II,
L.P.
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley                    - 0 -               108,467              - 0 -               108,467
Venture Capital II,
Inc.
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley                    - 0 -                - 0 -               - 0 -                - 0 -
Capital Partners III,
L.P.
- ----------------------------------------------------------------------------------------------------------
MSCP III, L.P.                    - 0 -              1,179,896             - 0 -              1,179,896
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley                    - 0 -              1,179,896             - 0 -              1,179,896
Capital Partners III,
Inc.
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley,                   - 0 -              1,866,332             - 0 -              1,866,332
Dean Witter,
Discover & Co.
==========================================================================================================
</TABLE>

Item 5.    Ownership of Five Percent or Less of a Class

      If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [  ].

Item 6.    Ownership of More than Five Percent on Behalf of Another Person.

           N/A

Item 7.    Identification and Classification of the Subsidiary Which Acquired
           the Security Being Reported on by the Parent Holding Company.

           N/A

Item 8.    Identification and Classification of Members of the Group.

           N/A

Item 9.    Notice of Dissolution of the Group.

           N/A

Item 10.   Certification.

           N/A

                                 SIGNATURE
                                 ---------

      After reasonable inquiry and to the best of the knowledge and belief of
each of the undersigned, each of he undersigned certifies that the information
set forth in this statement is true, complete and correct.


Date: February 17, 1998

                                          MORGAN STANLEY VENTURE CAPITAL FUND
                                          II, L.P.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MORGAN STANLEY VENTURE PARTNERS II,
                                          L.P.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MORGAN STANLEY VENTURE CAPITAL II,
                                          INC.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MORGAN STANLEY CAPITAL PARTNERS III,
                                          L.P.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MSCP III, L.P.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MORGAN STANLEY CAPITAL
                                          PARTNERS III, INC.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary


                                          MORGAN STANLEY, DEAN WITTER,
                                          DISCOVER & CO.

                                          By: /s/ Peter R. Vogelsang
                                              -------------------------------
                                               Name: Peter R. Vogelsang
                                               Title: Secretary





Attention:  Intentional misstatements or omissions of fact constitute Federal
criminal violations (See 18 U.S.C. 10001).



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