Projections about the growth of the telephone industry from 1970-1985 were made from forecasts of five panels of experts, in five areas: (1) the regulatory environment; (2) changes in U.S. society; (3) existing networks and services; (4) future networks and services; (5) future characteristics of the labor force and employee-management relations. Numerical forecasts were based on medians of the panelists' estimates. The report concluded by 1985 telephone industry revenues will reach $65 billion derived from 220 million telephones, three million picturephones, and eight million data terminals; new to-the-home information services will account for some $15 billion in revenues by 1990. More competition can be expected, with five to thirty new interstate carriers, and maybe four separate domestic special purpose satellite systems and a new nationwide independent data network. The report concluded the telephone industry can expect consumers and employees to be more skeptical about whether the industry is serving the public interest. (MG)