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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

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                                    FORM 8-K

                                 CURRENT REPORT

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     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


        Date of report (Date of earliest event reported): January 2, 1997



                    CELLULAR TECHNICAL SERVICES COMPANY, INC.
             (Exact Name of Registrant as Specified in its Charter)



          Delaware                      0-19437                  11-2962080
(State or Other Jurisdiction    (Commission File Number)      (I.R.S. Employer
    of Incorporation)                                        Identification No.)


           2401 Fourth Avenue
           Seattle, Washington                                     98121
(Address of Principal Executive Offices)                         (Zip Code)

                                 (206) 443-6400
              (Registrant's telephone number, including area code)



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           This  Current  Report  on Form  8-K is filed  by  Cellular  Technical
Services Company,  Inc., a Delaware  corporation (the "Company"),  in connection
with the matters described herein.



ITEM 5.    OTHER EVENTS

           In an action brought against the Company by Reon International  Corp.
and Reon Corp. in the Superior Court of King County,  Washington, the plaintiffs
allege  breach of contract,  misappropriation  of trade  secrets,  and breach of
other  obligations  by the Company.  The action was filed in late July 1996 and,
since that time, a significant  number of the  plaintiffs'  initial  claims have
been dismissed.  The plaintiffs  have amended their complaint three times,  most
recently in January 1997, and now allege that certain  transactions  between the
parties constitute a joint venture partnership.  The plaintiffs seek dissolution
of the alleged joint venture partnership,  damages in excess of $10 million, and
other relief.  The Company has formally denied all of the plaintiffs' claims and
is  vigorously  defending  this  action.  It is the  opinion  of  the  Company's
management  that this  action is without  merit and will be  resolved  without a
material adverse effect on the Company.









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                                   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.

Date:   January 27, 1997
                                           CELLULAR TECHNICAL SERVICES,
                                              COMPANY, INC.


                                           By:  /s/ Michael E. McConnell
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                                                Michael E. McConnell,
                                                Chief Financial Officer


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