US based radiowave telephony operator Teligent reported earnings below analysts' expectations for its third quarter, just days after completing the first phase of its US network.
Teligent has established a high speed fixed wireless voice and data service in 15 US cities, offering data transfer rates of up to 155Mbps (see Newswire 28 October). The company now plans to expand its coverage to over 540 cities and towns in the US by the end of next year.
Earnings per share for the three months ended 30 September were $1.49, four cents below analysts' forecasts of $1.45 per share as reported by First Call.
Teligent reported a net loss of $78.5 million for the quarter on turnover of $240,000. The results bring Teligent's net loss for the last nine months to $176.2 million, on revenue of around $480,000.
Fixed wireless has been touted as a cheap way for operators to establish their own local telephone networks without laying cables and wiring homes. Customers' phone calls are transmitted to the local telephone exchange via radio antennae on the outside of their buildings.
But the cost of marketing the product has proved too expensive for some operators, notably Ionica in the UK, which recently called in the administrators.
But despite missing analysts' forecasts, Teligent chief executive Alex Mandl was upbeat about the company's performance. "These results are right on target with our expectations," he said in a statement.
"We've exceeded the goal that we set for ourselves last January, when we announced that we would be up and running in ten markets by the end of 1998," said Mandl. "We intend to offer Teligent's full range of communications services in a total of 40 markets by the end of next year."
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