UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

     |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2001

                                       OR

     |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

 For the transition period from _____________________ to _______________________

                        Commission file number: 000-27582

                                SPEEDUS.COM, Inc.
             (Exact name of registrant as specified in its charter)

           Delaware                                         13-3853788

   ------------------------                             -------------------

(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

        140 58th Street, Suite 7E
            Brooklyn, New York                                  11220

        --------------------------                            ------------

(Address of principal executive offices)                       (Zip Code)

                                  718-567-4300

                             ----------------------

              (Registrant's telephone number, including area code)

                                 Not Applicable

                             ----------------------

         (Former name, former address and former fiscal year, if changed
                               since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes |X| No |_|

The number of outstanding shares of the registrant's common stock, par value
$.01 per share, as of May 7, 2001 was 20,333,438.

<PAGE>

                                SPEEDUS.COM, Inc.

                               INDEX TO FORM 10-Q

                                                                         Page(s)

PART I -- FINANCIAL INFORMATION

ITEM 1 -- Financial Statements

          Consolidated Balance Sheets as of March 31, 2001 (unaudited)
          and December 31, 2000...........................................     3

          Consolidated Statements of Operations (unaudited) for the
          Three Months Ended March 31, 2001 and 2000......................     4

          Consolidated Statements of Cash Flows (unaudited) for the
          Three Months Ended March 31, 2001 and 2000......................     5

          Notes to Consolidated Financial Statements (unaudited)..........   6-7

ITEM 2 -- Management's Discussion and Analysis of Financial
           Condition and Results of Operations............................  8-10

ITEM 3 -- Quantitative and Qualitative Disclosures About Market Risk......    10

PART II -- OTHER INFORMATION

ITEM 1 -- Legal Proceedings...............................................    11

ITEM 2 -- Changes in Securities...........................................    11

ITEM 3 -- Defaults Upon Senior Securities.................................    11

ITEM 4 -- Submission of Matters to a Vote of Security Holders.............    11

ITEM 5 -- Other Information...............................................    11

ITEM 6 -- Exhibits and Reports on Form 8-K................................    11

Signature Page............................................................    12


                                       2
<PAGE>

ITEM 1. Financial Statements

                                SPEEDUS.COM, Inc.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                             March 31,     December 31,
                                                               2001            2000
                                                           ------------    ------------
                                                           (unaudited)
<S>                                                        <C>             <C>
                           ASSETS
Current assets:
    Cash and cash equivalents                              $ 43,242,854    $ 38,594,815
    Marketable securities                                        66,996          68,166
    Due from broker                                           1,315,772         624,790
    Prepaid expenses and other                                    6,345          62,098
    Due from affiliates                                          93,112          93,112
    Accounts and other receivables                               95,408          94,816
                                                           ------------    ------------
    Total current assets                                     44,820,487      39,537,797
Property and equipment, net of accumulated
  depreciation of $9,240,790 and $9,198,902                   7,976,965       8,659,977
Goodwill, net of accumulated
  amortization of $1,790,613 and $1,185,724                   5,444,000       6,048,889
Other intangible assets, net of accumulated
  amortization of $235,179 and $173,214                       2,134,821       2,196,786
Other assets                                                  1,037,373       1,184,735
                                                           ------------    ------------
    Total assets                                           $ 61,413,646    $ 57,628,184
                                                           ============    ============

    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Accounts payable                                       $    300,250    $    270,202
    Accrued liabilities                                       1,506,532       1,532,542
    Securities sold and not purchased                         2,955,051         952,032
    Other current liabilities                                    18,439          18,005
                                                           ------------    ------------
    Total current liabilities                                 4,780,272       2,772,781

Commitments and Contingencies                                        --              --

Stockholders' equity:
    Common stock ($.01 par value; 40,000,000
      shares authorized; 21,184,838 and 21,034,838
      shares issued)                                            211,848         210,348
    Preferred stock ($.01 par value; 20,000,000
      shares authorized):
         Series A Junior Participating ($.01 par value;
           4,000 shares authorized; no shares issued                 --              --
           and outstanding)
    Additional paid-in-capital                               90,290,932      90,292,432
    Treasury stock (at cost; 883,700 and 309,800 shares)     (1,004,034)       (305,741)
    Accumulated deficit                                     (32,865,372)    (35,341,636)
                                                           ------------    ------------
    Stockholders' equity                                     56,633,374      54,855,403
                                                           ------------    ------------
    Total liabilities and stockholders' equity             $ 61,413,646    $ 57,628,184
                                                           ============    ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       3
<PAGE>

                                SPEEDUS.COM, Inc.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                    Three Months Ended March 31,
                                                    ----------------------------
                                                        2001            2000
                                                    ------------    ------------
<S>                                                 <C>             <C>
Revenues                                            $     24,504    $     35,402
                                                    ------------    ------------

Expenses:
    Selling, general and administrative                2,022,662       1,244,773
    Depreciation and amortization                      1,384,225         833,023
                                                    ------------    ------------
    Total operating expenses                           3,406,887       2,077,796
                                                    ------------    ------------

Operating loss                                        (3,382,383)     (2,042,394)

Unrealized gains/(losses) on investments               5,006,645        (118,515)
Interest and investment income                           872,014         719,420
Equity in loss of associated company                     (20,012)       (233,314)
Interest expense and financing fees                           --          (3,679)
                                                    ------------    ------------

Earnings/(loss) before provision for income taxes      2,476,264      (1,678,482)

Provision for income taxes                                    --              --
                                                    ------------    ------------

Net earnings/(loss)                                 $  2,476,264    $ (1,678,482)
                                                    ============    ============


Per share:
Basic earnings/(loss) per common share              $       0.12    $      (0.08)
                                                    ============    ============
Weighted average common shares
    outstanding                                       20,323,766      19,788,357
                                                    ============    ============

Diluted earnings/(loss) per common share            $       0.12    $      (0.08)
                                                    ============    ============
Weighted average common shares
    outstanding                                       20,451,256      19,788,357
                                                    ============    ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       4
<PAGE>

                                SPEEDUS.COM, Inc.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                       Three months ended March 31,
                                                                       ----------------------------
                                                                           2001            2000
                                                                       ------------    ------------
<S>                                                                    <C>             <C>
Cash flows from operating activities:
     Net earnings/(loss)                                               $  2,476,264    $ (1,678,482)
     Adjustments to reconcile net earnings/(loss) to
       net cash used in operating activities:
         Depreciation and amortization                                    1,384,225         833,023
         Stock based compensation                                           326,500          83,500
         Equity in loss of associated company                                20,012         233,314
         Changes in assets and liabilities:
             Marketable securities                                            1,170        (605,696)
             Due from broker                                               (690,982)             --
             Prepaid expenses and other                                      55,753              --
             Accounts and other receivables                                    (592)            282
             Other assets                                                       850          (9,369)
             Accounts payable                                                30,048        (100,143)
             Accrued liabilities                                            (26,010)         84,427
             Securities sold and not purchased                            2,003,019              --
             Other current liabilities                                          434        (138,937)
                                                                       ------------    ------------

                 Net cash provided by/(used in) operating activities      5,580,691      (1,298,081)
                                                                       ------------    ------------

Cash flows from investing activities:
     Investment in associated company                                      (200,000)       (233,314)
     Property and equipment additions                                       (34,359)       (762,608)
     Intangible assets                                                           --        (270,000)
                                                                       ------------    ------------

                 Net cash used in investing activities                     (234,359)     (1,265,922)
                                                                       ------------    ------------

Cash flows from financing activities:
     Repurchase of stock                                                   (698,293)             --
     Proceeds from exercise of stock options                                     --           1,433
     Repayment of notes payable                                                  --         (42,187)
                                                                       ------------    ------------

                 Net cash used in financing activities                     (698,293)        (40,754)
                                                                       ------------    ------------

                 Net increase/(decrease) in cash
                    and cash equivalents                                  4,648,039      (2,604,757)

Cash and cash equivalents, beginning of period                           38,594,815      44,613,101
                                                                       ------------    ------------

Cash and cash equivalents, end of period                               $ 43,242,854    $ 42,008,344
                                                                       ============    ============

Supplemental Cash Flow Disclosures:
     Cash paid for interest during the period                          $         --    $      4,313
                                                                       ============    ============

Non cash transactions:
     Common stock issued for intangible assets                         $         --    $  1,800,000
                                                                       ============    ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       5
<PAGE>

                                SPEEDUS.COM, Inc.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

      The accompanying unaudited consolidated financial statements include the
accounts of SPEEDUS.COM, Inc. and its wholly-owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation.

      These financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. These financial
statements do not include all information and notes required by generally
accepted accounting principles for complete financial statements. These
financial statements should be read in conjunction with the Company's 2000
audited consolidated financial statements and notes thereto on Form 10-K.

      Operating results for the three months ended March 31, 2001 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2001.

Marketable Securities

      All marketable securities are defined as trading securities under the
provisions of Statement of Financial Accounting Standards No. 115, "Accounting
for Certain Investments in Debt and Equity Securities." At March 31, 2001,
marketable securities consisted of publicly traded equity securities and were
recorded at fair market value. Their original cost was $73,000, unrealized
losses were $6,000 and the carrying value was $67,000.

      During the quarters ended March 31, 2001 and 2000, realized gains in the
amounts of $306,000 and $106,000, respectively, were recorded and included in
Interest and Investment Income in the accompanying Consolidated Statements of
Operations.

Securities sold but not purchased

      The Company may sell equity securities it does not own in anticipation of
declines in the fair market values of the securities. When the Company effects
such transactions, it must borrow the securities it sold in order to deliver
them and settle the trades. The amounts shown on the balance sheet as
'Securities sold but not purchased' represent the value of these securities at
fair market value. At March 31, 2001, the Company had sold securities it had not
purchased. The aggregate proceeds were $7,968,000, unrealized gains were
$5,013,000 and the market value of the securities was $2,955,000.

Earnings Per Share

      Basic and diluted earnings/(loss) per common share are determined in
accordance with Statement of Financial Accounting Standards No. 128, "Earnings
Per Share".

      For the quarters ended March 31, 2001 and 2000, basic and diluted net
earnings/(loss) available for common shareholders was equal to net
earnings/(loss).

      For the quarter ended March 31, 2001, the weighted average common shares
for diluted earnings per share were determined by adding weighted average shares
in the amounts of 5,693 and 121,797 for the assumed exercise of stock options
and warrants, respectively, to the weighted average shares outstanding for basic
earnings per share for a total of 20,451,256 weighted average shares outstanding
for diluted earnings per share. For the quarter ended March 31, 2000, stock
options and warrants have been excluded from the diluted loss per share since
their effect would be antidilutive.

2. Acquisition and Investment in Associated Company

      a. On June 30, 2000, the Company purchased the remaining 55% interest in
Speedia, LLC that it did not already own. The Company issued an aggregate of
950,000 shares of its Common Stock to Speedia's selling shareholders, Starpoint
Solutions, Inc. (formerly TIS Worldwide, Inc.) and Daniel Doyon (collectively,
the "Sellers").

      This acquisition was accounted for using the purchase method of
accounting. The results of operations of Speedia have been included in the
consolidated statements of operations for the periods subsequent to June 30,
2000. The excess of the purchase price, valued at approximately $6.8 million
(including the value of contingent shares, as discussed below), over the fair
value of the net assets acquired was approximately $7.2 million which has been
recorded as goodwill and is being amortized over a period of 3 years.

      At December 31, 2000, the Company was obligated to issue in the aggregate
an additional 183,334 shares of its Common Stock to the Sellers since 90% of
VisionStar Incorporated was not effectively contributed to the Company within 6
months from June 30, 2000. VisionStar, a company whose majority shareholder is
Shant S. Hovnanian, a co-founder and Chairman and Chief Executive Officer of the
Company, holds a license from the FCC, granted in May 1997, to construct, launch
and operate a Ka-band telecommunications satellite positioned over the
continental United States. A Special Committee of the Company's Board of
Directors


                                       6
<PAGE>

was evaluating Mr. Hovnanian's offer for the contribution of his interest in
VisionStar to the Company. On September 22, 2000, the Company announced that
discussions on the offer of Mr. Hovnanian have been terminated.

      In addition, an aggregate of an additional 183,334 shares will be issued
to the Sellers if the Company's share price does not reach $10 per share within
180 days from February 9, 2001.

      Unaudited pro forma operating results of the Company for the three months
ended March 31, 2000, as though the acquisition of SPEEDIA had occurred on
January 1, 2000, with adjustment to give effect to the amortization of goodwill,
are as follows:

            Revenues                                      $     59,695

            Operating loss                                $ (3,087,783)

            Net loss                                      $ (2,579,252)

            Basic and diluted net loss per share          $      (0.12)

      b. In January 2001, the Company and Siemens Corporate Research, Inc., a
subsidiary of Siemens Corporation, co-invested in a new company, Zargis Medical
Corp. Zargis was formed to develop and market advanced diagnostic decision
support products and services for primary care physicians and other Healthcare
professionals. Speedia Wireless, a wholly owned subsidiary of the Company, has
signed an exclusive contract with Zargis to design and develop the wireless
applications for Zargis, as well as provide transaction processing to support
the commercial rollout of Zargis' cardiac diagnostic products.

3. Stockholders' Equity

      On January 11, 2001, the Company's Board of Directors adopted a
stockholder rights plan in which preferred stock purchase rights (the "Rights")
will be distributed as a dividend at the rate of one Right for each share of the
Company's Common Stock.

      Each Right generally will entitle stockholders, in certain circumstances,
to buy one one-ten thousandth of a newly issued share of Series A Junior
Participating Preferred Stock of the Company at an exercise price of $50.00. The
Rights generally will be exercisable and transferable apart from the Common
Stock only if a person or group acquires beneficial ownership of 17% or more of
the Common Stock or commences a tender or exchange offer upon consummation of
which such person or group would beneficially own 17% or more of the Common
Stock.

      If any person becomes the beneficial owner of 17% or more of the Company's
Common Stock, then each Right not owned by a 17% or more stockholder or certain
related parties will entitle its holder to purchase, at the right's then-current
exercise price, shares of Common Stock (or, in certain circumstances as
determined by the Board, cash, other property, or other securities) having a
value of twice the Right's exercise price. In addition, if, after any person has
become a 17% or more stockholder, the Company is involved in a merger or other
business combination transaction with another person in which its Common Stock
is changed or converted, or sells 50% or more of its assets or earning power to
another person, each Right will entitle its holder to purchase, at the Right's
then-current exercise price, shares of common stock of such other person having
a value of twice the Right's exercise price.

      The Company will generally be entitled to redeem the Rights at $.01 per
Right at any time until the tenth day following public disclosure that a person
or group has become the beneficial owner of 17% or more of the Company's common
stock. The Rights will expire on January 26, 2011.

4. Legal Proceedings

      The Company is subject to various claims and proceedings that occur in the
ordinary course of business. The Company believes it has substantial defenses to
a material portion of these claims and is prepared to pursue litigation if a
reasonable and structured settlement cannot be reached with the parties. Based
on information currently available, the Company believes that none of these
current claims or proceedings, either individually or in the aggregate, will
have a material effect on its business.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

      The following discussion and analysis of financial condition and results
of operations should be read in conjunction with the corresponding discussion
and analysis included in the Company's Report on Form 10-K for the year ended
December 31, 2000.


                                       7
<PAGE>

Information Relating to Forward-Looking Statements

      This Management's Discussion and Analysis of Financial Condition and
Results of Operations and other sections of this Form 10-Q contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). These statements appear in a number of places in this Form 10-Q
and include statements regarding the intent, belief or current expectations of
the Company or its officers with respect to, among other things, the ability of
the Company to make capital expenditures, the ability to incur additional debt,
as necessary, to service and repay such debt, if any, as well as other factors
that may effect the Company's financial condition or results of operations.
Forward-looking statements may include, but are not limited to, projections of
revenues, income or losses, capital expenditures, plans for future operations,
financing needs or plans, compliance with covenants in loan agreements, plans
for liquidation or sale of assets or businesses, plans relating to products or
services of the Company, assessments of materiality, predictions of future
events, and the ability to obtain additional financing, including the Company's
ability to meet obligations as they become due, and other pending and possible
litigation, as well as assumptions relating to the foregoing. All statements in
this Form 10-Q regarding industry prospects and the Company's financial position
are forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Operations

      We are developing and providing wireless data services that enable and
enhance the use of Internet-based content on mobile devices. We currently
provide on a promotional basis wireless e-mail and Internet content, including
directories, financial data, sports, news and entertainment, to consumers. We
have expanded our wireless data services to include products and services that
enable businesses to communicate efficiently and effectively with their mobile
workforce and customers in real time through a wide variety of mobile computing
and communications devices. In addition, we maintain a web site that provides
Internet users with information about high-speed Internet access. We also own
fixed wireless spectrum in the New York City metropolitan area that we may
commercialize in the future to support high-speed, or broadband, Internet access
service.

      We changed our business focus in November 1998, terminating our
subscription television service. Since changing our focus, we have yet to
generate any revenue from our wireless data products and services business.
Since 1999, our only significant source of revenue was $550,000 received from XO
Communications, Inc. as discussed below. The balance of revenues in 1999 and
2000, generally subscriber fees from our pilot program for high-speed Internet
service and co-hosting revenues from the use of our Data Center, have not been
material and future revenues from this and our mobile wireless business are
uncertain.

      We have generated operating losses and negative operating cash flows since
our inception and expect to continue to do so in the future.

      From 1992 until November 1998, we operated a 49-channel analog
subscription television service utilizing 1,300 MHz of spectrum under a LMDS
license from the FCC. The FCC commercial operating license was awarded to us in
recognition of our efforts in developing and deploying LMDS technology, and for
spearheading its regulatory approval at the FCC. In September 1997, our pioneer
LMDS license was renewed as a standard LMDS license through February 1, 2006.
The license provides that the spectrum may be used for a wide variety of fixed
wireless purposes, including wireless local loop telephony, high-speed Internet
access and two-way teleconferencing. The license covers 1,150 MHz of spectrum in
the 28 GHz range encompassing the New York Primary Metropolitan Statistical
Area, a region which includes the five boroughs of New York City as well as the
New York Counties of Westchester, Rockland, and Putnam. Under FCC authorization,
the license includes an additional 150 MHz of spectrum until the first Ka band
satellite is launched, an event which is not expected to occur prior to 2002.

      In November 1998, we assigned an 850 MHz portion of our license to WinStar
Communications, Inc. as an alternative source of financing that was needed at
the time. In connection with this assignment, we terminated our subscription
television service because we no longer had sufficient spectrum to deliver those
services. As a result, while we were able to repay, repurchase and redeem debt
(in the aggregate amount of approximately $11.2 million) and preferred stock
(approximately $4.6 million) in connection with the 1998 assignment as required
under those indentures and substantially strengthen our financial position, we
eliminated the only source of revenues that we had at the time. In October 1999,
we assigned a 150Mhz portion of our license to XO. From July 1999 to October
1999, pending regulatory approval of the license assignment, XO made monthly
payments of approximately $172,000 to us. We are an emerging growth company with
no certainty as to the amount of future cash flows from operations.

      Our SPEED411(SM) portal, which is located at www.speedus.com and
www.speed411.com, promotes high-speed Internet access on a nationwide basis by
providing users with information on how to get high-speed access and how to take
advantage of offerings available to high-speed users. The portal will give us an
opportunity to generate revenues from Web site advertising, referral fees and
commissions on product sales. Revenues to date from these sources have not been
material.

      Currently, we are also conducting a limited pilot program of our SPEED(SM)
broadband super high-speed Internet service and, at March 31, 2001, had less
than 100 subscribers. A full marketing effort will not commence until new LMDS
equipment becomes


                                       8
<PAGE>

commercially available with cost and performance that allow implementation of
SPEED(SM) service on an economically attractive basis. We cannot determine when
this will occur and this equipment may never be available to us on this basis.
Revenues from our high-speed Internet service would consist of subscriber fees,
as well as the sales and installations of modems; however, the pricing structure
of the service could change in response to market and other competitive
conditions. Revenues to date from these sources have not been material. We
estimate that the total annual cost of the pilot program is approximately
$500,000.

Three Months Ended March 31, 2001 Compared to Three Months Ended March 31, 2000

      Revenues decreased $10,000 from $35,000 for the three months ended March
31, 2000 to $25,000 for the three months ended March 31, 2001. The revenues for
these periods reflect the early results of the Company's pilot program to
connect its first Internet subscribers and co-hosting revenues from use of the
Company's Data Center. The Company intends to continue this pilot program until
a final determination can be made on the availability of equipment on an
economically attractive basis. We cannot determine when this will occur and this
equipment may never be available to us on this basis. We estimate that the total
annual cost of the pilot program is approximately $500,000.

      Selling, general and administrative expenses increased $778,000 from
$1,245,000 for the three months ended March 31, 2000 to $2,023,000 for the three
months ended March 31, 2000. This increase is primarily attributable to the June
30, 2000 acquisition of the remaining 55% interest in Speedia, a
facilities-based wireless application service provider, which the Company did
not already own. This acquisition was accounted for using the purchase method of
accounting. The results of operations of Speedia are included in the
consolidated statements of operations beginning with the quarter ended September
30, 2000. Selling, general and administrative expenses also increased as a
result of increases in compensation expense as a result of additions to senior
management, including research and development and the Company's Portal, and
legal expenses in connection with Intellectual Property matters.

      Depreciation and amortization increased $551,000 from $833,000 for the
three months ended March 31, 2000 to $1,384,000 for the three months ended March
31, 2001. $605,000 of this net increase is a result of amortization of the
goodwill resulting from the Speedia acquisition on June 30, 2000 discussed
above. This goodwill is being amortized over a period of three years.

      Unrealized gains/(losses) on investments increased $5,126,000 from net
unrealized losses of $119,000 for the three months ended March 31, 2000 to net
unrealized gains of $5,007,000 for the three months ended March 31, 2001. The
amount of these unrealized gains or losses will fluctuate based upon changes in
the market value of the underlying investments and are not necessarily
indicative of the results that may be expected for any future periods.

      Interest and investment income increased $153,000 from $719,000 for the
three months ended March 31, 2000 to $872,000 for the three months ended March
31, 2001. $200,000 of this net increase is the result of an increase in the
amount of realized gains from investments. Realized gains were $106,000 for the
three months ended March 31, 2000 compared to $306,000 for the three months
ended March 31, 2001.

      Equity in loss decreased $213,000 from $233,000 for the three months ended
March 31, 2000 to $20,000 for the three months ended March 31, 2001. The 2000
period primarily reflects the Company's 45% interest in Speedia's operations,
accounted for under the equity method. As discussed above, subsequent to June
30, 2000, upon the acquisition of the remaining 55% interest in Speedia, the
results of operations of Speedia are included in the consolidated statements of
operations. The 2001 period reflects the Company's current 50% interest in
Zargis Medical Corp.'s operations, accounted for under the equity method. In
January 2001, the Company and Siemens Corporate Research, Inc., a subsidiary of
Siemens Corporation, acquired equal stakes in Zargis, formerly Sound
Diagnostics, Inc., as a result of their seed funding of Zargis. Zargis was
formed to develop and market advanced diagnostic decision support products and
services for primary care physicians and other Healthcare professionals. Zargis
is currently focusing on technology to assist the primary care physician in the
detection of valvular heart disease, by identifying cases that might otherwise
go undetected and by improving the recognition of innocent heart murmurs,
thereby reducing the number of unnecessary referrals for more expensive
diagnostic evaluations. Speedia has signed an exclusive contract with Zargis to
design and develop the wireless applications, as well as provide transaction
processing to support the commercial rollout of Zargis' cardiac diagnostic
products.

      Net earnings amounted to $2,476,000 for the three months ended March 31,
2001 compared to a net loss of $1,678,000 for the three months ended March 31,
2000, primarily as a result of the unrealized gains from investments recognized
by the Company during the 2001 period. These results for the three months ended
March 31, 2001 are not necessarily indicative of the results that may be
expected for any future periods.

Liquidity and Capital Resources

      The Company has recorded operating losses and negative operating cash
flows in each year of its operations since inception, primarily due to the
start-up costs in connection with the commercial roll-out of the Company's
system, slower than anticipated consumer acceptance of the Company's now
terminated subscription television services and expenses incurred in connection
with the LMDS rulemaking proceeding.

      The Company believes that consummation of the spectrum assignments in
November 1998 and October 1999 for net proceeds of approximately $15.5 million
and $19.8 million, respectively, after the repayment and repurchase of debt (in
the aggregate amount of approximately $11.2 million) and redemption of preferred
stock (approximately $4.6 million) in connection with the 1998 assignment


                                       9
<PAGE>

as required under those indentures and the sale of Common Stock in July 1999 for
net proceeds of approximately $19.8 million have provided sufficient liquidity
to finance its current level of operations and expected capital requirements
through the 2001 fiscal year. However, the Company does not expect to have a
positive operating cash flow until such time as it substantially increases its
Internet customer base and/or forms a strategic alliance for use of its Internet
capabilities in the future. We cannot predict when this will occur. We have no
material non-cancelable commitments and the amount of future capital funding
requirements will depend on a number of factors that we cannot quantify,
including the success of our business, the extent to which we expand our
high-speed Internet service if suitable equipment becomes available and the
types of services we offer, as well as other factors that are not within our
control, including competitive conditions, government regulatory developments
and capital costs.

      Internet broadcast stations used in our pilot high-speed Internet service
had an original cost of approximately $500,000 each. Until new equipment becomes
available, if at all, we cannot predict whether new broadcast stations would be
necessary or what they would cost at that time. Our wireless data services for
mobile devices business is more adaptable for future growth and future capital
funding requirements would generally not be material.

      Generally, our wireless data services will be priced based on the amount
of ongoing service usage that our customers utilize, either in the form of a
monthly fee for each registered user, or a fee for each wireless transaction
that is delivered through our services. Additionally, there are initial set-up
fees that will vary greatly depending on the amount of time and materials that
we incur in tailoring the services for each customer.

      Our selling costs will increase as we market these products. However, most
of the costs associated with our wireless data services are labor related and
these costs will only be incurred as new business is signed. The hardware cost
associated with maintaining the services will not increase significantly with
added customers.

      The lack of additional capital in the future could have a material adverse
effect on the Company's financial condition, operating results and prospects for
growth.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      The Company's financial instruments at March 31, 2001 consist primarily of
cash equivalents, which are subject to interest rate risk, and marketable
securities and securities sold and not repurchased, which are subject to equity
price risk.

      The carrying value of cash equivalents approximates market value since
these highly liquid, interest earning investments have short maturities. There
was no significant investment in marketable securities, which consist of
publicly traded equity securities classified as trading securities and were
recorded at fair market value. Securities sold and not repurchased are carried
at the fair market value of the securities.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

      Note 4 to the accompanying consolidated financial statements is
incorporated herein by reference.

ITEM 2. CHANGES IN SECURITIES

      Note 3 to the accompanying consolidated financial statements is
incorporated herein by reference.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

      None.


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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

ITEM 5. OTHER INFORMATION

      None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibits:

            27* Financial Data Schedule

      b. Current Reports on Form 8-K:

            The Company filed a Current Report on Form 8-K on January 16, 2001
for an event specified in Item 5 of such report.

      *     Filed herewith


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                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                        SPEEDUS.COM, Inc.


Date: May 15, 2001                      By: /s/ Shant S. Hovnanian
                                            ------------------------------------
                                        Shant S. Hovnanian
                                        Chairman of the Board and Chief
                                        Executive Officer


Date: May 15, 2001                      By: /s/ Angela M. Vaccaro
                                            ------------------------------------
                                        Angela M. Vaccaro
                                        Controller and Chief Accounting Officer