SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


         Date of Report (Date of earliest event reported) March 31, 1999
                                                        -----------------

                           AvTel Communications, Inc.
                           --------------------------
             (Exact name of registrant as specified in its charter)

                           Commission File No. 0-27580
                                              ---------


         Delaware                                                87-0378021
- --------------------------------                             ------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


501 Bath Street, Santa Barbara, California  93101
- ------------------------------------------------------------------
(Address of principal executive offices)    (Zip Code)


Registrant's telephone number, including area code: 805-884-6300
                                                    ------------

==============================================================
(Former Name or Former Address, if changed since last report)

                    INFORMATION TO BE INCLUDED IN THE REPORT


ITEM 5.  OTHER EVENTS

     On March  31,  1999,  Registrant  issued  a press  release  announcing  its
financial  results for the year and fourth  quarter  ended  December  31,  1998.
Registrant's  press release also noted that  Registrant  had engaged a financial
advisor  to  assist  Registrant  in  arranging  up to  $15  million  in  private
equity-based  financing.  The press  release is attached as Exhibit 99.1 to this
Current Report and is incorporated herein by this reference.

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION  AND
         EXHIBITS

         C.   EXHIBITS.

     Exhibit 99.1 Press Release dated March 31, 1999, regarding (i) Registrant's
financial  results for the year and fourth  quarter ended December 31, 1998, and
(ii)  Registrant's  engagement  of a  financial  advisor  in  connection  with a
proposed private placement of equity securities.


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, hereunto duly authorized.


                                   AVTEL COMMUNICATIONS, INC.



                                   By:      /S/ ANTHONY E. PAPA
                                      -----------------------------------------
                                   Anthony E. Papa
                                   Chief Executive Officer


Date: April 1, 1999

                                  EXHIBIT INDEX


Exhibit 99.1 Press  Release  dated March 31, 1999,  regarding  (i)  Registrant's
financial  results for the year and fourth  quarter ended December 31, 1998, and
(ii)  Registrant's  engagement  of a  financial  advisor  in  connection  with a
proposed private placement of equity securities. (Begins on Page 5).