U.S. SECURITIES AND EXCHANGE COMMISSION

                          WASHINGTON, D.C. 20549

                               FORM 12b-25

                       COMMISSION FILE NUMBER 0-27580


                        NOTIFICATION OF LATE FILING


                         CUSIP NUMBER 054529 20 1


(Check One):
[ ] Form 10-K  [ ] Form 11-K  [ ] Form 20-F  [X] Form 10-Q  [ ] Form N-SAR

For Period Ended: June 30, 1999

[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR

For the Transition Period Ended:

Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.

If the notification relates to a portion of the filing checked above, identify
the Item(s) to which the notification relates: ________________________

                        PART I--REGISTRANT INFORMATION

Full Name of Registrant:    AvTel Communications, Inc.

Former Name if Applicable: _______________________

Address of Principal Executive Office (Street and Number):
City, State and Zip Code:

501 Bath Street
Santa Barbara, CA 93101




                      PART II--RULE 12b-25 (b) AND (c)

If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed.

(Check box if appropriate)

 [X] (a) The reasons described in  reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or expense;

 [X] (b) The subject annual report,  semi-annual  report,  transition
report on Form 10-K, Form 20-F, 11-K or Form N-SAR, or portion thereof will
be filed on or before the  fifteenth  calendar day following  the  prescribed
 due date; or the subject  quarterly report or transition  report on Form
10-Q, or portion thereof will be filed on or before the fifth  calendar day
following the  prescribed due date; and

 [ ] (c) The accountant's  statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.

                            PART III--NARRATIVE

     State below in reasonable detail the reasons why Form 10-K, 11-K,  20-F,
10-Q,  N-SAR or the transition  report or portion thereof could not be filed
within the prescribed period:

     Preparation of the Registrant's Form 10-Q for the quarter ended June 30,
1999, was temporarily delayed in order to obtain written approval from the
Registrant's lender to modify its secured borrowing facility. In addition,
certain of the Registrant's resources have been otherwise employed in the
negotiation and preparation of documentation with respect to the
previously-announced sale of the Registrant's Matrix Telecom, Inc.
subsidiary.  As a result, Registrant is unable to complete and file its Form
10-Q for the quarter ended June 30, 1999, by the prescribed due date without
unreasonable effort or expense.  The Registrant will file its Form 10-Q for
such  period no later than the fifth calendar day following the due date.

                        PART IV--OTHER INFORMATION

     (1)  Name and  telephone  number  of  person  to  contact  in regard to
this notification:

     Michael J. Ussery                 (805) 884-6300
     -----------------        (Area Code) (Telephone Number)
     (Name)

     (2) Have all other periodic  reports  required under section 13 or 15(d)
of the Securities  Exchange Act of 1934 or section 30 of the Investment
Company Act of 1940  during the  preceding  12 months or for such  shorter
period  that the registrant was required to file such report(s) been filed?
If the answer is no, identify report(s).



[X] Yes   [ ] No

     (3) Is it anticipated that any significant change in results of
operations from the corresponding  period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report or
portion thereof?

[X] Yes   [ ] No

     If so: attach an explanation of the anticipated  change,  both
narratively and  quantitatively,  and, if  appropriate,  state the reasons
why a  reasonable estimate of the results cannot be made.

     For the quarter ended June 30, 1999, AvTel  recorded  revenues of $9.3
million and a net loss of $2.1 million or $0.22 per share on 10.5 million
basic and diluted  shares.  The Company  reported  revenues of $11.3 million
and a net loss of $1.7  million with a per  share  loss of $.18 on
approximately 9.5 million basic and diluted shares for the quarter ended June
30, 1998.

AVTEL COMMUNICATIONS, INC.
(Name of Registrant as specified in charter)

Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.

Date: August 16, 1999

By /s/ MICHAEL J. USSERY

       Michael J. Ussery
       Chief Financial Officer


                                   ATTENTION

Intentional misstatements or omissions of fact constitute Federal Criminal
Violations (See 18 U.S.C. 1001).