This two-report volume was prepared to describe approaches for evaluating individual Office of Telecommunications Policy (OTP) demonstration projects in the future and to aid demonstration project directors in project planning and development. The first report focuses on the role of planning and evaluation activities, stressing their importance in helping the program to promote telecommunications use in social service delivery more effectively. It also presents an overview of the types of information that are useful in various phases of project development and includes an outline for the annual evaluation reports required of grantees. The second report examines the economic and financial characteristics of telecommunications demonstrations, presents a method for analyzing project costs, and then applies the method to the three projects that had generated sufficient data for an analysis. These case analyses are presented as case studies in an appendix. (LMM)