SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                          SCHEDULE 13D
                         (Rule 13d-101)

     INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
             TO RULE 13d-1(a) AND AMENDMENTS THERETO
                 FILED PURSUANT TO RULE 13d-2(a)
                        (Amendment No. 4)

                        VTEL CORPORATION
                        (Name of Issuer)

                          Common Stock
                 (Title of Class of Securities)

                           918333-10-5
                         (CUSIP Number)

                        F. Thomas Dunlap
      Senior Vice President, General Counsel and Secretary
                        Intel Corporation
                 2200 Mission College Boulevard
                      Santa Clara, CA 95052
                    Telephone: (408) 765-8080
          (Name, Address and Telephone Number of Person
        Authorized to Receive Notices and Communications)

                         August 7, 2001
                  (Date of Event which Requires
                    Filing of this Statement)

If the filing person has previously filed a statement on Schedule
13G  to  report  the  acquisition that is  the  subject  of  this
Schedule  13D, and is filing this schedule because of  Rule  13d-
1 (e), 13d-1 (f) or 13d-1 (g), check the following box [  ].

*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 on 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 (the "Act") or otherwise
subject  to the liabilities of that section of the Act but  shall
be subject to all other provisions of the Act.

                          Page 1 of 10



CUSIP No. 918333-10-5         13D/A                  Page 2 of 10


1.   NAME OF REPORTING PERSON                      Intel
                                                   Corporation
     S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE    94-1672743
     PERSON

2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A        (a) [   ]
     GROUP**                                           (b) [   ]

3.   SEC USE ONLY

4.   SOURCE OF FUNDS**                                        WC

5.   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS          [   ]
     IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

6.   CITIZENSHIP OR PLACE OF ORGANIZATION               Delaware

  NUMBER OF   7.     SOLE VOTING POWER                       -0-
   SHARES
BENEFICIALLY  8.     SHARED VOTING POWER                     N/A
  OWNED BY
    EACH      9.     SOLE DISPOSITIVE POWER                  -0-
  REPORTING
 PERSON WITH  10.    SHARED DISPOSITIVE POWER                N/A

11.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH              -0-
     REPORTING PERSON

12.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)          [   ]
     EXCLUDES CERTAIN SHARES**

13.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW          0.00%
     (11)

14.  TYPE OF REPORTING PERSON                                  CO

**SEE INSTRUCTIONS BEFORE FILLING OUT!



CUSIP No. 918333-10-5         13D/A                  Page 3 of 10


This Amendment No. 4 amends and supplements Items 1 and 5 of the
statement  on  Schedule  13D (the "13D"),  and  the  cover  page
thereto,  filed  November 2, 1993 (the  "13D"),  as  amended  by
Amendment  No.  1 filed on September 22, 1995, Amendment  No.  2
filed on February 1, 1996, and Amendment No. 3 filed on May  23,
1997 by Intel Corporation (the "Reporting Person"), with respect
to  the  common  stock (the "Common Stock") of VTEL  Corporation
("VTEL"  or  the "Issuer").  This Amendment No.  4  is  made  to
report the sale of all of Intel's shares of VTEL Common Stock.

ITEM 2.   Identity and Background.

          (a)    Name of Person Filing:

                 Intel Corporation

          (b)    Address of Principal Business Office:

                 2200 Mission College Boulevard
                 Santa Clara, CA 95052-8119

          (c)    Principal Business:

                 Manufacturer of microcomputer components,
                 modules and systems

          (d)    Criminal Proceedings:

                 During the last five years neither the
                 Reporting Person nor any executive officer or
                 director of the Reporting Person has been
                 convicted in any criminal proceeding.

          (e)    Civil Proceedings:

                 During the last five years neither the
                 Reporting Person nor any executive officer or
                 director of the Reporting Person has been party
                 to any civil proceeding of a judicial or
                 administrative body of competent jurisdiction
                 as a result of which such person was or is
                 subject to any judgment, decree or final order
                 enjoining future violations of, or prohibiting
                 or mandating activities subject to, Federal or
                 State securities laws or finding any violation
                 with respect to such laws.

          (f)    Place of Organization:  Delaware
          Attached hereto as Appendix A is information required
          by this Item 2 with respect to the executive officers
          and directors of the Reporting Person.  All such
          individuals are U.S. citizens, except as otherwise
          indicated on Appendix A.



CUSIP No. 918333-10-5         13D/A                  Page 4 of 10


ITEM 5.   Interest in Securities of the Issuer.

          (a)    Number of Shares             0 shares
                 Beneficially Owned:

                 Right to Acquire:            0 shares

                 Percent of Class:            0.00%

          (b)    Sole Power to vote, Direct   0 shares
                 the Vote of, or Dispose of
                 Shares:

          (c)    Recent Transactions:

                 On  or about July 23, 2001 the Reporting person
                 sold  28,047 shares of Common Stock in an  open
                 market  transaction at $1.12 per share;  On  or
                 about  July 24, 2001 the Reporting person  sold
                 30,000 shares of Common Stock in an open market
                 transaction at $1.0633 per share; On  or  about
                 July  25, 2001 the Reporting person sold 60,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share;  On  or  about
                 July  26, 2001 the Reporting person sold 20,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share;  On  or  about
                 July  27, 2001 the Reporting person sold 13,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00  per share; On  or  about
                 July  30, 2001 the Reporting person sold 25,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share;  On  or  about
                 July  31, 2001 the Reporting person sold 20,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share;  On  or  about
                 August 1, 2001 the Reporting person sold 20,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share.  On  or  about
                 August 2, 2001 the Reporting person sold 10,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share.  On  or  about
                 August 3, 2001 the Reporting person sold 15,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $1.00 per share.  On  or  about
                 August 6, 2001 the Reporting person sold 25,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $0.97 per share.  On  or  about
                 August 7, 2001 the Reporting person sold 10,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction  at $0.96 per share.  On  or  about
                 August 8, 2001 the Reporting person sold 70,000
                 shares  of  Common  Stock  in  an  open  market
                 transaction at $0.9179 per share. On  or  about
                 August  10,  2001  the  Reporting  person  sold
                 10,000 shares of Common Stock in an open market
                 transaction  at $0.90 per share.  On  or  about
                 August  13,  2001  the  Reporting  person  sold
                 1,156,854  shares of Common Stock  in  an  open
                 market transaction at $0.90 per share.

          (d)    Rights with Respect to Dividends or Sales
                 Proceeds:  N/A

          (e)    Date of Cessation of Five Percent Beneficial
                 Ownership:  August 13, 2001



CUSIP No. 918333-10-5         13D/A                  Page 5 of 10


                            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.

Dated: August 21, 2001.

                                 INTEL CORPORATION


                                 By:  /s/ F. Thomas Dunlap, Jr.
                                      F. Thomas Dunlap, Jr.
                                      Senior Vice President,
                                      General Counsel and
                                      Secretary




CUSIP No. 918333-10-5         13D/A                  Page 6 of 10


                           APPENDIX A

                            DIRECTORS

The following is a list of all Directors of Intel Corporation and
certain  other  information with respect to each  Director.   All
Directors are United States citizens except as indicated below.

Name:             Craig R. Barrett

Business          Intel Corporation, 2200 Mission College
Address:          Boulevard, Santa Clara, CA 95052

Principal         President and Chief Executive Officer
Occupation:

Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:


Name:             John Browne

Business          BP Amoco p.l.c., Britannic House, 1 Finsbury
Address:          Circus, London EC2M 7BA

Principal         Group Chief Executive
Occupation:

Name, principal   BP Amoco p.l.c., an integrated oil company.
business and      Britannic House, 1 Finsbury Circus
address of        London EC2M 7BA
corporation or
other
organization in
which employment
is conducted:

Citizenship:      British




CUSIP No. 918333-10-5       Schedule 13D/A     Page 7 of 10 Pages

Name:             Winston H. Chen

Business          Paramitas Foundation, 3945 Freedom Circle,
Address:          Suite 760, Santa Clara, CA 95054

Principal         Chairman
Occupation:

Name, principal   Paramitas Foundation, a charitable foundation.
business and      3945 Freedom Circle, Suite 760
address of        Santa Clara, CA 95054
corporation or
other
organization in
which employment
is conducted:


Name:             Andrew S. Grove

Business          Intel Corporation, 2200 Mission College
Address:          Boulevard, Santa Clara, CA 95052

Principal         Chairman of the Board of Directors
Occupation:

Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:


Name:             D. James Guzy

Business          The Arbor Company, 1340 Arbor Road, Menlo
Address:          Park, CA 94025

Principal         Chairman
Occupation:

Name, principal   The Arbor Company, a limited partnership
business and      engaged in the electronics and computer
address of        industry.
corporation or    1340 Arbor Road
other             Menlo Park, CA 94025
organization in
which employment
is conducted:




CUSIP No. 918333-10-5       Schedule 13D/A     Page 8 of 10 Pages

Name:             Reed E. Hundt

Business          Charles Ross Partners LLC, 1909 K Street NW,
Address:          Suite 820, Washington, DC 20006

Principal         Principal Partner
Occupation:

Name, principal   Charles Ross Partners LLC, a law firm.
business and      1909 K Street NW, Suite 820
address of        Washington, DC 20006
corporation or
other
organization in
which employment
is conducted:


Name:             David S. Pottruck

Business          The Charles Schwab Corporation, 101 Montgomery
Address:          Street, San Francisco, CA 94104

Principal         President and Co-Chief Executive Officer
Occupation:

Name, principal   The Charles Schwab Corporation, a financial
business and      services provider
address of        101 Montgomery Street
corporation or    San Francisco, CA 94104
other
organization in
which employment
is conducted:


Name:             Jane E. Shaw

Business          AeroGen, Inc., 1310 Orleans Drive, Sunnyvale,
Address:          CA 94089

Principal         Chairman and Chief Executive Officer
Occupation:

Name, principal   AeroGen, Inc., a pulmonary drug delivery
business and      company
address of        1310 Orleans Drive
corporation or    Sunnyvale, CA 94089
other
organization in
which employment
is conducted:




CUSIP No. 918333-10-5       Schedule 13D/A     Page 9 of 10 Pages

Name:             Leslie L. Vadasz

Business          Intel Corporation, 2200 Mission College
Address:          Boulevard, Santa Clara, CA 95052

Principal         Executive Vice President; President, Intel
Occupation:       Capital

Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:


Name:             David B. Yoffie

Business          Harvard Business School, Morgan Hall 215,
Address:          Soldiers Field Park Road, Boston, MA 02163

Principal         Max and Doris Starr Professor of International
Occupation:       Business Administration

Name, principal   Harvard Business School, an educational
business and      institution.
address of        Morgan Hall 215,Soldiers Field Park Road
corporation or    Boston, MA 02163
other
organization in
which employment
is conducted:


Name:             Charles E. Young

Business          University of Florida, 226 Tigert Hall, P.O.
Address:          Box 113150, Gainesville, FL 32610

Principal         President of the University of Florida
Occupation:

Name, principal   University of Florida
business and      226 Tigert Hall
address of        P.O. Box 113150
corporation or    Gainesville, FL 32610
other
organization in
which employment
is conducted:




CUSIP No. 918333-10-5       Schedule 13D/A    Page 10 of 10 Pages

                       EXECUTIVE OFFICERS

The  following  is  a  list of all executive  officers  of  Intel
Corporation excluding executive officers who are also  directors.
Unless  otherwise indicated, each officer's business  address  is
2200  Mission  College Boulevard, Santa Clara, California  95052-
8119, which address is Intel Corporation's business address.

Name:       Andy D. Bryant
Title:      Executive Vice President, Chief Financial and
            Enterprise Services Officer

Name:       Sean M. Maloney
Title:      Executive Vice President; General Manager, Intel
            Communications Group

Name:       Paul S. Otellini
Title:      Executive Vice President; General Manager, Intel
            Architecture Business Group

Name:       Michael R. Splinter
Title:      Executive Vice President; General Manager, Sales and
            Marketing Group

Name:       F. Thomas Dunlap, Jr.
Title:      Senior Vice President, General Counsel and Secretary

Name:       Robert J. Baker
Title:      Vice President; Co-General Manager, Technology and
            Manufacturing Group

Name:       Arvind Sodhani
Title:      Vice President, Treasurer