Abstract: A computer peripheral device (200) including a conventional keyboard (201) and a telephone controller (320) for interconnecting an incoming telephone line (221) with a telephone instrument (235). Besides the standard array of keys (e.g. 205), the keyboard includes telephone control keys (e.g., 206, 207). A keyboard controller (310) is responsive to both the standard keys and the telephone keys to decode keyboard scan codes. The telephone keys cause a pre-determined keyboard area to operate in either a standard mode or a telephone mode. The keyboard controller transmits a synchronous serial data stream to the computer when operating in the standard mode. Alternatively, the keyboard controller transmits parallel control data to the telephone controller to control the set-up, interconnection, and take-down of the telephone line to the telephone instrument when the keyboard is placed in the telephone mode.