SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



SCHEDULE 13G

Under the Securities Exchange Act of 1934
(Amendment No. ___)


Vtel Corporation                                       
(Name of Issuer)


Common Stock
(Title of Class of Securities)


918333105
(CUSIP Number)


                                                                   
Check the following box if a fee                       / X /
    is being paid with this statement    
                                                                   
(A fee is not required only if the filing person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent
of the class of securities described in Item 1; and (2) has filed no
amendment subsequent thereto reporting beneficial ownership of five
percent or less of such class.) (See Rule 13d-7.)

*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 remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") of 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).

                  (Continued on following pages)

Page 1 of 4  Pages


- ----------------------------              -------------------------
Cusip No. 91833105                 13G     Page 2 of 4 Pages
- ----------------------------              -------------------------
- -------------------------------------------------------------------
1.  NAME OF REPORTING PERSON
    S.S OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
    OppenheimerFunds, Inc.

   I.R.S. NO. 13-2527171
- -------------------------------------------------------------------
2.  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP *

                    A /   /

                    B / X /
- -------------------------------------------------------------------
3.  SEC USE ONLY
- -------------------------------------------------------------------
4.  CITIZENSHIP OR PLACE OF ORGANIZATION

    Colorado
- -------------------------------------------------------------------
NUMBER OF           5.  SOLE VOTING POWER
SHARES                  0
BENEFICIALLY        -----------------------------------------------
OWNED BY            6.  SHARED VOTING POWER
EACH                    0
REPORTING           -----------------------------------------------
PERSON WITH         7.  SOLE DISPOSITIVE POWER
                        0
                    -----------------------------------------------
                    8.  SHARED DISPOSITIVE POWER
                        881,400
- -------------------------------------------------------------------
9.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
    881,400
- -------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
    SHARES *
- -------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
    6.55%
- -------------------------------------------------------------------
12. TYPE OF REPORTING PERSON
    IA
- -------------------------------------------------------------------

* SEE INSTRUCTIONS BEFORE FILLING OUT!



SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13G
Under the Securities Exchange Act of 1934

Check the following box if a fee 
         is being paid with this statement  / X /

Item 1(a)               Name of Issuer:
                        Vtel Corporation

Item 1(b)               Address of Issuer's Principal Executive Offices:
                        108 Wild Basin Road
                        Austin, TX  78746
                        
Item 2(a)               Name of Person Filing:
                        OppenheimerFunds, Inc.

Item 2(b)               Address of Principal Business Office:
                        Two World Trade Center, Suite 3400
                        New York, New York 10048-0203

Item 2(c)               Citizenship:
                        Inapplicable

Item 2(d)               Title of Class of Securities:
                        Common Stock

Item 2(e)               CUSIP Number:
                        918333105

Item 3(e)                X   Investment Adviser registered under Section 203 of
                             the Investment Advisers Act of 1940

Item 4(a)               Amount Beneficially Owned:  881,400 shares

Item 4(b)               Percent of Class:  6.55%

Item 4(c)(i)            Sole Power to vote or to direct the vote -  0

Item 4(c)(ii)           Shared power to vote or to direct the vote - 0

Item 4(c)(iii)          Sole power to dispose or to direct the disposition of
                        - 0

Item 4(c)(iv)           Shared power to dispose or to direct the disposition
                        of - 881,400 shares

Item 5                  Ownership to 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 5% of
                        the class of securities, check the following:     



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

Item 7                  Identification and Classification of the Subsidiary
                        Which Acquired the Security Being Reported on By the
                        Parent Holding Company:
                        Inapplicable

Item 8                  Identification and Classification of Members of the
Group:
                        Inapplicable
        
Item 9                  Notice of Dissolution of Group:
                        Inapplicable
            
Item 10                 Certification:
                        By signing below, I certify that, to the best of my
                        knowledge and belief, the securities referred to above
                        were acquired in the ordinary course of business and
                        were not acquired for the purpose of and do not have
                        the effect of changing or influencing the control of
                        the issuer of such securities and were not acquired in
                        connection with or as a participant in any transaction
                        having such purpose or effect.

SIGNATURE               After reasonable inquiry and to the best of my
                        knowledge and belief, I certify that the information
                        set forth in this statement is true, complete and
                        correct.

Date:                    February 9, 1996

Signature:              /s/ Merryl Hoffman
                        ________________________________________             
Name/Title:             Merryl Hoffman, Vice President