THE PHOENIX PROJECT WAS CONCERNED WITH THE ROLE OF THE VIDEO TELEPHONE IN THE CRIMINAL JUSTICE PROCESS AND THE IMPROVEMENTS IN CASE DISPOSITION THAT MIGHT RESULT FROM ITS USE. SEVEN APPLICATIONS WERE IMPLEMENTED AND USED TO A SIGNIFICANT EXTENT, INCLUDING PUBLIC DEFENDER CONFERENCES WITH JAILED CLIENTS, REMOTE ACCESS TO THE POLICE INFORMATION BUREAU, ARRAIGNMENT OF IN-CUSTODY DEFENDANTS, AND REMOTE TESTIMONY AT PRELIMINARY HEARINGS AND TRIALS. THE APPLICATIONS INVOLVING CRIMINAL HEARINGS AND TRIALS WERE IMPLEMENTED ONLY ON A TEST CASE BASIS TO AVOID A BUILDUP OF CASES THAT MIGHT BE REVERSED ON APPEAL BECAUSE OF THE USE OF THE VIDEO TELEPHONE. AN ANALYSIS OF THE OVERALL COST IMPACT OF THE VIDEO TELEPHONE USE IN PHOENIX, ASSUMING THE VIDEO TELEPHONE WERE PRICED AS IF IT WERE GENERALLY AVAILABLE AS A TARIFF ITEM, SHOWED THAT EVEN WITH THE MINIMAL TEST INSTALLATION AND LIMITED USAGE, THE COST SAVINGS MORE THAN OFFSET THE COST OF THE INSTALLATIONS. WHEN THE USAGE WAS PROJECTED TO THE MAXIMUM POSSIBLE WITHIN THE PHOENIX/MARICOPA COUNTY JURISDICTION, THE SAVINGS INCREASED TO AS MUCH AS $27,000 PER MONTH. FOR THE OTHER VOLUMES IN THIS SERIES, SEE NCJ-38951 AND NCJ-38952. (AUTHOR ABSTRACT MODIFIED)...ELW