This report provides information on the educational telecommunications market. Its articles cover a wide array of applications and issues, including online services, funding for the development of statewide telecommunications networks, education-related Internet projects and products. The trends detailed in the report, and the vendors and products described meet the growing demand for interactive educational content. The report's contents have been drawn from the last 18 months of the "Heller Report" newsletters--"Educational Technology Markets" and "Internet Strategies for Education Markets." The report is divided into four main chapters: (1) "Funding Initiatives"; (2) "Making Sense of the Buzz: 'Heller Report' Editorials," which consists of articles explaining the forces behind the growth of the Internet and how it impacts education and the education markets; (3) "How Big is the Market?: Hints from Research," in which ten articles review recent market research on educational use of online services, the Internet and other telecommunications products and services; and (4) "Case Studies: Vendor Approaches to the Market," in which 14 articles look at specific vendors' product and marketing strategies in K-12 applications of online services and the Internet. Another seven articles in this section cover online newspaper services, the Microsoft Network, Apple's World and other business ventures. The report's organization is chronological and the issue from which each article is drawn is clearly referenced. (Author/AEF)