Neutrino telescopes with large detection volumes can demonstrate that the current indications of neutrino oscillation are correct or if a better description can be achieved with non-standard alternatives. Observations of contained muons produced by atmospheric neutrinos can better constrain the allowed region for oscillations or determine the relevant parameters of non-standard models. We analyze the possibility of neutrino telescopes measuring atmospheric neutrino oscillations. We suggest adjustments to improve this potential. An addition of four densely-instrumented strings to the AMANDA II detector makes observations feasible. Such a configuration is competitive with current and proposed experiments.

36 pages, 21 figures, revtex