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The current program has two major thrusts: i.e., the development and refinement of practical low-cost, robust, narrowband, and variable-rate speech algorithms and voice terminal structures; and the establishment of an experimental wideband satellite network as a unique facility for the realistic investigation of voice/data networking strategies. This report covers work in the following areas: filter bank vocoder development; design study a high-speed, easily programmable, research-oriented speech processor; design and implementation of compact, modular packet voice terminals and local access area facilities; the design and implementation of a miniconcentrator facility to mediate the flow of local access area traffic onto a wideband channel; and experimental definition and planning for the wideband network.