Although modern telecommunication has drastically our daily lives, the audibly challenged cannot benefit from such telecommunication because it is based on phonetic media. This paper introduces a new telecommunication system for sign language utilizing VR technology, which enables natural sign conversation on the conventional analogue telephone line. In this method, a person converses with his/her party�s avatar instead of the party's live video. As a speaker's actions are transmitted as kinematic data, the transmitted data is ideally compressed without losing both the language and non-language information of spoken signs. A prototype system, S-TEL, which implements this method on UDP/IP, proved the effectiveness of avatar-based communication for sign conversation via a real lossy channel.