Simple sequence repeat telomeric DNA is maintained by a specialized reverse
transcriptase, telomerase. The integral RNA subunit of telomerase contains
a template region that determines the sequence added to chromosome ends. A
side from providing the template, little is known about the role of the tel
omerase RNA. In addition, no hypotheses have been suggested to account for
the striking evolutionary divergence in size and sequence between telomeras
e RNAs of ciliates, yeasts, and mammals. We show that the two- to threefold
increase in size of the mammalian telomerase RNAs relative to ciliate telo
merase RNAs is due to the presence of an extra domain resembling a box H/AC
A small nucleolar RNA (snoRNA). The human telomerase RNA (hTR) H/ACA domain
is essential in vivo for hTR accumulation, hTR 3' end processing, and telo
merase activity. By substituting the U64 box H/ACA snoRNA for the hTR H/ACA
domain, we demonstrate that a heterologous snoRNA can function to promote
chimeric RNA accumulation and 3' end processing but not telomerase activity
. In addition, we show that maturation of full-length hTR and its assembly
into active telomerase occur from an mRNA promoter-driven RNA polymerase II
transcript but not from a U6 snRNA promoter-driven RNA polymerase III tran
script. Finally, we show that a small percentage of hTR is associated with
nucleoli. These results have implications for the biogenesis and structure
of hTR and the human telomerase ribonucleoprotein complex. They also expand
the structural and functional diversity of the box H/ACA snoRNA motif.