FORM 10QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549
                   QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                   OF THE SECURITIES AND EXCHANGE ACT OF 1934

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

   (Mark One)

       [x]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY
              PERIOD ENDED September 30, 1998

                                       OR

       [ ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION
              PERIOD FROM __________________  TO __________________

                         Commission file number 0-25194

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

                             FIRSTCOM CORPORATION
               --------------------------------------------------
               (Exact name of registrant as specified in charter)

                      TEXAS                         87-0464860
             ------------------------      -----------------------------
             (State of Incorporation)      (IRS Employee Identification)

            2600 DOUGLAS ROAD, SUITE 501
               CORAL GABLES, FLORIDA                   33134
      ---------------------------------------        ----------
      (Address of principal executive offices)       (Zip Code)

                         Registrant's telephone number:
                                 (305) 448-4422

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

       Indicate by check mark whether the registrant (1) filed all reports
     required by Section 13 or 15(d) of the Securities Exchange Act of 1934
              during the past 12 months (or for such shorter period
          than that the registrant was required to file such reports),

                          Yes [x]     No [ ]
 
   and (2) has been subject to such filing requirements for the past 90 days.

                          Yes [x]     No [ ]

State the number of shares outstanding of each of the issuer's
classes of common equity, as of November  13, 1998 - 19,084,300

                 NOTE: Page 1 of 17 sequentially numbered pages.

                                       1
<PAGE>

                    FIRSTCOM CORPORATION

                                      INDEX

PART I  FINANCIAL INFORMATION

  Item 1.  Condensed Consolidated Financial Statements
           (unaudited)

           Condensed Consolidated Balance Sheets - as of 
           September 30, 1998 (unaudited)and December 31, 1997               3

           Condensed Consolidated Statements of Operations - 
           Nine Months and Three Months Ended September 30, 1998 and 1997
           (unaudited)                                                       4

           Condensed Consolidated Statement of Stockholders'
           Equity - Nine Months Ended September 30, 1998
           (unaudited)                                                       5

           Condensed Consolidated Statements of Cash Flows - 
           Nine Months Ended September 30, 1998 and 1997
           (unaudited)                                                       6

           Notes to Condensed Consolidated Financial Statements
           (unaudited)                                                       7

  Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results Of Operations                               9

PART II  OTHER INFORMATION

  Item 6.  Exhibits and Reports on Form 8-K                                 15

  Signatures                                                                16

  Exhibit Index                                                             17

                                       2

<PAGE>

PART I FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                   FIRSTCOM CORPORATION

                          CONDENSED CONSOLIDATED BALANCE SHEETS
                      (THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)


                                                            09/30/98      12/31/97
                                                           (UNAUDITED)  (As Restated)
    ASSETS                                                 -----------  -------------
<S>                                                        <C>          <C>
Current assets:
  Cash and cash equivalents ...............................$    9,435  $      14,936
  Restricted cash .........................................    31,960         61,028
  Restricted investments ..................................    20,431         20,404
  Accounts receivable,net .................................     3,071          2,367
  Prepaid expenses and other current assets ...............       967          1,208
                                                           -----------  -------------
          Total current assets ............................    65,864         99,943

Restricted investments ....................................    29,157         37,488
Telecommunications networks, net ..........................    38,435          9,348
Intangible assets, net ....................................    14,605         15,186
Deferred financing costs ..................................    14,747         14,971
                                                           -----------  -------------
          Total assets ....................................$  162,808   $    176,936
                                                           ===========  =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable ........................................$    5,972   $      4,023
  Convertible Debentures...................................        --          1,550
  Accrued interest ........................................     8,925          3,925
  Other accrued expenses ..................................     1,522          2,631
  Due to related parties ..................................         --           263
  Lease obligations, current ..............................       155            313
  Other current liabilities ...............................       923            322
                                                           -----------  -------------
          Total current liabilities .......................    17,497         13,027

Senior notes, net .........................................   132,147        131,626
Lease obligations, less current portion ...................       268            356
                                                           -----------  -------------
          Total liabilities ...............................   149,912        145,009
                                                           -----------  -------------

Commitments and contingencies .............................         --            --
                                                           -----------  -------------

Stockholders' equity
  Preferred stock, $.001 par value, authorized 10,000,000
     shares, none issued
  Common stock, $.001 par value, authorized 50,000,000
     shares, issued and outstanding as of  December 31,
     1997 and June 30, 1998  19,084,300 shares ............        19             19
  Additional paid in capital ..............................    31,562         31,562
  Warrants ................................................    26,737         26,737
  Accumulated deficit .....................................   (44,578)       (26,153)
  Cumulative translation adjustments ......................      (238)          (238)
                                                           -----------  ------------
                                                               13,502         31,927
  Shareholder loans .......................................      (606)            --
                                                           -----------  ------------
          Total stockholders' equity ......................    12,896         31,927
                                                           -----------  ------------

          Total liabilities and stockholders' equity ......$  162,808   $    176,936
                                                           ===========  =============
</TABLE>

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

                                       3
<PAGE>
<TABLE>
<CAPTION>
                                      FIRSTCOM CORPORATION

                          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)


                                                   NINE MONTHS ENDED          THREE MONTHS ENDED
                                                       SEPTEMBER 30,             SEPTEMBER 30,
                                                  1998           1997         1998          1997
                                              (UNAUDITED)    (UNAUDITED)   (UNAUDITED)   (UNAUDITED)
                                                            (as restated)               (as restated)
                                              ------------  -------------  ------------  -------------
<S>                                           <C>           <C>            <C>           <C>
Revenues..................................    $    10,651   $        853   $     3,836   $        268
                                              ------------  -------------  ------------  -------------
Operating expenses:
  Cost of revenues........................          8,491            942         2,984            274
  Selling, general and administrative.....          7,975          3,011         3,435          1,257
  Non-cash compensation and
  Consulting                                           --          4,640            --          4,640
  Depreciation and amortization...........          1,612            834           512            285
                                              ------------  -------------  ------------  -------------
 
Loss from operations......................         (7,427)        (8,574)       (3,095)        (6,188)
                                              ------------  -------------  ------------  -------------

Interest expense..........................        (15,284)        (1,543)       (4,632)        (1,012)
Interest income and other.................          4,286             48         1,027             15
                                              ------------  -------------  ------------  -------------

Net loss..................................    $   (18,425)  $    (10,069)  $    (6,700)  $     (7,185)
                                              ============  =============  ============  =============

Net basic and diluted loss per share......    $     (0.97)  $      (0.20)  $     (0.35)  $      (0.34)
                                              ============  =============  ============  =============
Weighted average common shares
outstanding...............................     19,084,300     16,123,074    19,084,300     16,064,184
                                              ============  =============  ============  =============
</TABLE>

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

                                       4
<PAGE>
<TABLE>
<CAPTION>
                                                  FIRSTCOM CORPORATION

                                 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                       (THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)


                                      COMMON STOCK      ADDITIONAL      ACCRUED                 CUMULATIVE
                                -----------------------  PAID-IN    DISTRIBUTIONS ACCUMULATED   TRANSLATION   SHAREHOLDER
                                  SHARES      AMOUNTS    CAPITAL     AND WARRANT    DEFICIT     ADJUSTMENT       LOANS       TOTAL
                                ----------  ----------  ----------   ----------   ----------    ----------    ----------   --------
<S>                             <C>         <C>         <C>          <C>          <C>           <C>           <C>        <C>
Balances at December 31, 1997
  (as restated).................19,084,300          19      31,562       26,737     (26,153)         (238)         --       31,927

Shareholder loans ..............        --          --          --           --          --            --        (606)        (606)

Net loss (unaudited) ...........        --          --          --           --     (18,425)           --          --      (18,425)
                                ----------  ----------  ----------   ----------   ----------    ----------   ---------   ----------

Balances at September 30, 1998
(unaudited) ....................19,084,300  $       19  $   31,562   $   26,737   $ (44,578)    $    (238)   $   (606)   $  12,896
                                ==========  ==========  ==========   ==========   ==========    ==========   =========   ==========
</TABLE>

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

                                       5
<PAGE>

<TABLE>
<CAPTION>
                                FIRSTCOM  CORPORATION

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (THOUSANDS OF US DOLLARS, EXCEPT SHARE DATA)


                                                         NINE MONTHS ENDED SEPTEMBER 30,
                                                             1998          1997
                                                          (UNAUDITED)   (UNAUDITED)
                                                                       (as restated)
                                                          ------------  ------------
<S>                                                       <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss .........................................      $   (18,425)  $   (10,069)
  Adjustments to reconcile net loss to net cash
    used in operating activities:
    Depreciation and amortization expense ..........            1,612           834
    Amortization of deferred financing costs and
      original issue discounts .....................              932            91
    Accretion of discount on restricted
      Investments...................................           (2,197)           --
    Capitalized interest related to network ........           (1,605)         (600)
      Construction
   Non-cash compensation and consulting
      Expenses......................................               --         4,640
  Financial assistance exchanged for common
    Stock...........................................               --           852
    Beneficial conversion feature ..................               --           810
    Changes in assets and liabilities:
      Accounts receivable ..........................             (704)           37
      Prepaid expenses and other current assets ....              242          (120)
      Other assets .................................             (319)            9
      Accounts payable and accrued expenses ........            5,840           297
      Due to related parties .......................             (263)         (130)
      Other current liabilities ....................              619           (86)
                                                          ------------  ------------

         Cash used in operating activities .........          (14,268)       (3,435)
                                                          ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of telecommunications network ...........          (28,381)       (1,855)
  Use of restricted cash............................           29,067            --
                                                          ------------  ------------
          Cash used in investing activities ........              686        (1,855)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on convertible debentures ...............           (1,550)           --
  Use of restricted investments ....................           10,500            --
  Shareholder loans ................................             (606)           --
  Net proceeds from notes payable and 
  Bridge notes......................................               --           950
  Proceeds from bank line of credit, net of
  Restricted bank deposits..........................               --           343
  Proceeds from convertible debentures .............               --         3,500
  Deferred financing costs..........................               --          (474)
  (Payments under) proceeds from leasing obligations             (263)          147
                                                          ------------  ------------

         Cash provided by financing activities, net             8,081         4,940
                                                          ------------  ------------

Net decrease in cash and cash
  equivalents ......................................           (5,501)         (350)
Effect of exchange rate changes on cash ............               --           (74)
Cash and cash equivalents, beginning of period .....           14,936           723
                                                          ------------  ------------
Cash and cash equivalents end of period ............      $     9,435   $       299
                                                          ============  ============
</TABLE>


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

                                       6
<PAGE>

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BASIS OF PRESENTATION

     The unaudited condensed  consolidated  financial statements included herein
have  been  prepared  by the  Company.  The  foregoing  statements  contain  all
adjustments,  consisting only of normal recurring  adjustments which are, in the
opinion  of  the  Company's   management,   necessary  to  present   fairly  the
consolidated  financial position of the Company as of September 30, 1998 and the
consolidated  results of its operations and its consolidated  cash flows for the
three and nine month periods ended September 30, 1998 and 1997.

     Certain  information and footnote disclosure normally included in financial
statements,   prepared  in  accordance   with  generally   accepted   accounting
principles,  have been condensed or omitted pursuant to the instructions,  rules
and  regulations  prescribed by the  Securities  and Exchange  Commission  ("the
Commission").  Although  the  Company  believes  the  disclosures  provided  are
adequate  to  make  the  information  presented  not  misleading,   it  strongly
recommends that these  condensed  consolidated  financial  statements be read in
conjunction with the audited consolidated financial statements and the footnotes
thereto  included  in the  Company's  Annual  Report on Form 10-KSB for the year
ended December 31, 1997.

AMENDED QUARTERLY FINANCIAL INFORMATION

     During  August 1998,  the Company  restated  its  financial  statements  to
reflect  the  effect of  revising  the price per share of Company  common  stock
issued in connection  with the May 1996  acquisition  of FirstCom Peru (formerly
Resetel) from $2.25 to $5.99 per share.  The revised price per share is based on
the average  closing  price of the  Company's  common stock for the period of 14
days before and after the date the terms of the acquisition were announced.  The
previously recorded purchase price was based on the Company's March 1996 private
placement.  The effect of the change in price per share  increased  the reported
purchase price from approximately $2,800 to $7,500.

     Because of the  restatement  related to FirstCom  Peru,  the  Company  also
amended  certain  financial  information  as  reported on its March 31, 1998 and
September  30,  1997  Form  10-QSB.  A  summary  of  the  original  and  amended
unaudited  financial  information and a description of the related impact of the
Company's statement of operations follows:

<TABLE>
<CAPTION>
                                               THREE MONTHS  NINE MONTHS
                                                  ENDED        ENDED
                                                 MARCH 31,   SEPTEMBER 30,
                                                   1998         1997
                                              -------------  ----------
<S>                                            <C>           <C>
Revenues .................................     $     3,327   $     853
Loss from Operations .....................          (1,636)     (8,574)
Net loss, as amended .....................     $    (5,278)    (10,069)
                                               ============  ==========
Net basic and diluted loss per
 share, as amended .......................     $     (0.28)  $   (0.61)
                                               ============  ==========
General and administrative
 expenses
Depreciation expense
Interest expense
Amortization expenses ....................            59(a)      176(a)
                                              -------------  ----------
Net loss, as originally reported..........     $    (5,219)    $(9,893)
                                               ============  ==========
Net basic and diluted loss per
 share, as originally reported ...........     $     (0.27)     $(0.61)
                                               ============  ==========
<FN>
(a) Reflects the effect of the FirstCom Peru purchase price described in the
    introductory language to the table above.
</TABLE>

<PAGE>

NOTE 1 - TELECOMMUNICATIONS NETWORKS

     Telecommunications  networks are recorded at cost and are  depreciated on a
straight-line  method over the  estimated  useful  lives of the related  assets.
Construction,  engineering,  interest , labor  costs and import and value  added
taxes  directly  related  to the  development  of  the  Company's  networks  are
capitalized.  The Company  begins  depreciating  these  costs when the  networks
become commercially operational.

         Telecommunications networks consists of:

<TABLE>
<CAPTION>
                                                                                        ESTIMATED
                                                         SEPTEMBER 30,  DECEMBER 31,     USEFUL
                                                             1998         1997            LIFE
                                                          ------------  -----------  ---------------
<S>                                                       <C>           <C>          <C>
Telecommunications equipment ........................     $    12,242   $    6,547   10 to 20 years
Telecommunications equipment pending installation and
construction in progress ............................          25,300        2,627               --
Office equipment, furniture and vehicles ............           3,100        1,663          3 to 7
                                                          ------------  -----------  
                                                               40,642       10,837

Less: accumulated depreciation ......................          (2,207)      (1,489)
                                                          ------------  -----------  
                                                          $    38,435   $    9,348
                                                          ============  ===========  
</TABLE>

NOTE 2 - FOREIGN CURRENCY TRANSLATION

     Primarily as a result of the Company's (1) U.S. dollar  denominated  senior
note financing during October 1997 and (2) acquisition of FirstCom Long Distance
during December 1997, effective January 1, 1998 the Company's  subsidiaries have
used the U.S. dollar as their  functional  currency.  This change did not have a
significant impact on the Company's results of operations for the nine and three
months ended September 30, 1998.


NOTE 3 - RECLASSIFICATIONS

         Certain amounts in the 1997 condensed consolidated financial statements
were reclassified to conform with the 1998 presentation.

                                       7
<PAGE>

NOTE 4 - SHAREHOLDER RIGHTS PLAN

     On February 1, 1998,  the Board of Directors  adopted a shareholder  rights
plan  (the  "Rights  Plan")  designed  to  assure  that  all  of  the  Company's
shareholders  receive  fair and equal  treatment  in the  event of any  proposed
takeover of the Company.  The Rights Plan helps to guard against  partial tender
offers,  squeeze-outs,  open market  accumulations  and other abusive tactics to
gain  control of the Company  without  paying an adequate  and fair price in any
takeover attempt.

     The Rights Plan provides for the issuance of one right for each outstanding
share of the  Company's  Common  Stock.  The current  outstanding  Common  Stock
certificates  will represent the Rights until they are exercisable and therefore
no separate certificates representing the Rights will be issued. The Rights will
separate  from the Common  Stock and become  exercisable  when a person or group
acquires,  or  announces  that  it  intends  to  acquire,  20%  or  more  of the
outstanding shares of the Company's Common Stock. This percentage can be reduced
to 10% if the Board  deems  that such  ownership  interest  may cause a material
adverse impact on the business or prospects of the Company or its  shareholders.
The Rights will expire on April 3, 2008.

NOTE 5 - SHAREHOLDER LOANS

     During  April 1998 the Company  loaned  certain  officers  $606  related to
federal and state income tax  liabilities  arising from shares of the  Company's
common stock granted to such officers during 1997. The loans are  collateralized
by 336,600 shares of the Company's common stock.

                                       8
<PAGE>


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

FORWARD-LOOKING STATEMENTS

     Certain  statements set forth herein including  information with respect to
the  Company's  plans and strategy for its  business,  acquisitions  and related
financings, are forward-looking  statements. Such forward-looking statements are
subject to material risks,  uncertainties and  contingencies,  many of which are
beyond control of the Company.  As a result, the actual results,  performance or
achievements  of the  Company,  may be  materially  different  from  any  future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statements.  Given these uncertainties,  investors and creditors
are cautioned not to place undue reliance on such forward-looking statements.

OVERVIEW

 The  Company's  strategy is to (i) build  facilities  based fiber optic and
digital switching  intelligent  networks;  (ii) develop strategic  relationships
with technology network vendors and developers of Internet-based  software;  and
(iii) provide end-to-end network solutions to business customers.

     Today,  the  Company  is  constructing  state-of-the-art  fiber  optic  ATM
networks in  Santiago,  Chile and Lima,  Peru.  ATM is an  information  transfer
standard that is one of a general class of packet technologies.  ATM can be used
by many different information systems,  including local area networks to deliver
traffic at varying rates, permitting a mix of voice, data, video and multimedia.
The fiber  optic cable  installed  in (i)  Santiago  runs  through the  downtown
business district and the outlying industrial and airport corridor and (ii) Lima
runs through the major commercial and industrial districts of Lima, and the port
city of Callao.  A summary of key  metrics as of and for the nine  months  ended
September 30, 1998 follows:


<TABLE>
<CAPTION>
                                  CHILE    PERU   TOTAL
                                  ------  ------  ------
<S>                               <C>     <C>     <C>
NETWORK INSTALLATION
  ROUTE KILOMETERS . . . . . . .     120     671     791
                                  ------  ------  ------
  FIBER KILOMETERS . . . . . . .   1,577  21,985  23,562
                                  ------  ------  ------
  ATM NODES INSTALLED. . . . . .       4       -       4
                                  ------  ------  ------
  BUILDINGS WIRED. . . . . . . .       2       -       2
                                  ------  ------  ------
  LONG DISTANCE SWITCHES . . . .       3       -       3
                                  ------  ------  ------

NETWORK CONSTRUCTION IN PROCESS
  ATM NODES (OC 12). . . . . . .       3       5       8
                                  ------  ------  ------
  ATM NODES (OC 3) . . . . . . .       -      18      18
                                  ------  ------  ------
  ACCESS ROUTERS . . . . . . . .      47     120     167
                                  ------  ------  ------
  BUILDINGS PERMITS OUTSTANDING.      14       -      14
                                  ------  ------  ------

OPERATING INDICATORS
  EMPLOYEES. . . . . . . . . . .     128     102     236
                                  ------  ------  ------
  LONG DISTANCE MINUTES (000'S).  32,659       -  32,659
                                  ------  ------  ------
  DATA PORTS SOLD. . . . . . . .     332      47     379
--------------------------------  ------  ------  ------
</TABLE>


     In Chile the Company  operates  through  three wholly  owned  subsidiaries,
FirstCom Networks  (formally  operated by the Company under the names of Hewster
Servicios Intermedios,  S.A. and Hewster S.A.), FirstCom Long Distance (formally
Iusatel  Chile S.A.  which was acquired by the Company on December 17, 1997) and
Visat S.A. ("Visat").

     FirstCom  Networks  currently  provides  businesses  in Santiago  with high
quality  voice  and  data  communications  services  on a  private  line  basis,
including local area network  interconnections,  remote terminal access,  PBX to
PBX  connections,  remote  printing  capabilities  and high speed  access to the
Internet through  arrangements  with a Chilean based ISP. In addition,  FirstCom
Networks  provides  its  customers  with  local  and wide area  network  design,
engineering,  installation,  systems' integration and support services. FirstCom
Long  Distance  provides  domestic and  international  long  distance  services.
FirstCom Long Distance's long distance traffic is switched and  transported,  in
part,  through its own gateway switch and satellite  earth  station,  as well as
through  interconnections with other Chilean long distance carriers. Visat holds
a government  concession to provide  intermediate  telecommunications  services,
including  the  installation  and  operation of a network of 12 satellite  earth
stations  and a switch  throughout  Chile,  which allows the Company to transmit
satellite communications.

     In Peru, the Company operates through a wholly owned  subsidiary,  FirstCom
Peru S.A.  (formerly  Resetel).  Upon  completion  of its fiber  optic  network,
FirstCom Peru intends to provide multinational,  national and local businesses a
broad  array of high  quality  data,  video  and voice  communication  services,
including LAN interconnection, frame relay, remote terminal access and dedicated
channels for access to the Internet, on a private line basis. As a result of the
accelerated  liberalization of Peru's telecommunications  markets and expiration
of Telefonica del Peru's  exclusive  concession to provide public switched local
and long distance  telephony  services  effective August 1, 1998,  FirstCom Peru
intends to aggressively  expand its existing service offerings to provide public
switched telephony.

RESULTS OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
30, 1997

     DURING  DECEMBER  1997 THE COMPANY  ACQUIRED  FIRSTCOM  LONG  DISTANCE S.A.
(FORMERLY  IUSATEL CHILE S.A.).  THE  COMPANY'S  COMPARATIVE  OPERATING  RESULTS
DURING THE NINE MONTHS OF 1998 WERE  SIGNIFICANTLY  IMPACTED BY THIS ACQUISITION
AS DISCUSSED IN MORE DETAIL BELOW. 

     REVENUES.  The Company's revenues are derived primarily from its operations
in  Chile.  During  the  first  nine  months  of  1998  FirstCom  Long  Distance
contributed approximately 92% of total revenues. The Company expects revenues to
increase  over the next few years due to the  completion  of the  Company's  ATM
fiber optic  networks and the related  expansion of its  operations  in Peru and
Chile.

     The Company's revenues were $10,651,000 for the nine months ended September
30, 1998 as compared to $853,000 for the nine months ended  September  30, 1997.
This increase  during 1998 was due to the acquisition of FirstCom Long Distance.
FirstCom Long Distance  generated  revenues  during 1998 of  approximately  $9.8
million through the sale of approximately  32.6 million minutes  resulting in an
average revenue per minute of approximately  $0.30.  FirstCom  Network's revenue
during  1998 of  $730,000  consisted  primarily  of  equipment  sales and system
integration services.

     COST OF REVENUES.  The Company's cost of revenues is derived primarily from
its  operations  in Chile.  Costs of revenues  include both the cost of services
provided and the cost of  equipment  sold.  During 1998 cost of revenues  relate
principally  to FirstCom Long Distance and include  access charges paid to local
exchange carriers and transmission payments to other carriers. Costs of revenues
also  include  payments for rights of way related to the  Company's  fiber optic
networks.  The Company  anticipates that the cost of revenues will increase with
the expansion of its operations.

     The  Company's  cost of revenues was  $8,491,000  for the nine months ended
September  30, 1998 as compared to $942,000 for the nine months ended  September
30, 1997.  This increase was  attributable  to the  acquisition of FirstCom Long
Distance.

     SELLING,  GENERAL  AND  ADMINISTRATIVE   EXPENSES.   Selling,  general  and
administrative  expenses  consist  principally  of  salaries,  wages and related
liabilities,  professional  fees related to legal,  recruiting  and  accounting,
advertising  and  marketing  costs,  and travel.  The Company  expects  selling,
general and  administrative  expenses to increase  over time as it  continues to
expand its operations.

     The Company's selling,  general and administrative expenses were $7,975,000
for the nine months ended  September 30, 1998 as compared to $3,011,000  for the
nine months ended September 30, 1997.  This increase was primarily  attributable
to the  acquisition  of  FirstCom  Long  Distance  and the hiring of  additional
personnel  related  to the  anticipated  growth  of  the  Peruvian  and  Chilean
operations.  At September 30, 1998 the Company had  approximately  236 employees
compared to 130 employees at December 31, 1997. The Company  expects to continue
to increase the number of its employees during the fourth quarter of this year.

     NON CASH  COMPENSATION  AND  CONSULTING  This expense of $4,640,000  during
September  1997, was directly  attributable  to the intrinsic value of shares of
Common Stock and stock options issued to certain  officers and former  directors
of the Company. There were no such transactions or expenses during 1998.

     DEPRECIATION    AND    AMORTIZATION.    The   Company    depreciates    its
telecommunications  networks and intangible assets on a straight line basis over
their  estimated  useful  lives.  The Company  believes  that  depreciation  and
amortization  expense  will  continue  to  increase  with the  expansion  of its
operations.

     The Company's  depreciation and  amortization  expenses were $1,612,000 for
the nine months  ended  September  30, 1998 as compared to $834,000 for the nine
months ended September 30, 1997. This increase was primarily  attributable to an
increase in  depreciation  and  amortization  expense  related to certain assets
purchased in the acquisition of FirstCom Long Distance.

     INTEREST  EXPENSE.  The Company  currently  incurs interest  expense on the
outstanding  Senior Notes and capital leases.  Interest expense has been reduced
for amounts capitalized related to the Company's construction of its fiber optic
networks.  Interest  costs  reported with respect to the Company's  Senior Notes
include  amortization  of (i) deferred  financing  costs and (ii) original issue
discounts related to detachable warrants.

     The Company's  interest  expense was  $15,284,000 for the nine months ended
September 30, 1998 as compared to $1,543,000 for the nine months ended September
30, 1997.  This increase was due to the Senior Notes that were issued on October
21,  1997.  Of the total  interest  costs  incurred  by the Company for the nine
months ended September 30, 1998 and 1997,

                                       10
<PAGE>

$1,605,000  and  $600,000,  respectively,  of such  costs  were  capitalized  in
connection  with the Company's  construction of its fiber optic network in Lima,
Peru.

     INTEREST INCOME AND OTHER.  The Company  currently earns interest income on
cash and cash equivalents, restricted cash, and restricted investments.

     The Company's  interest income and other was $4,286,000 for the nine months
ended  September  30, 1998 as  compared  to $48,000  for the nine  months  ended
September 30, 1997. This increase was primarily  attributable to interest income
earned on the Company's restricted cash and investments.

     INCOME TAXES.  The Company is subject to federal,  state and foreign income
taxes but has incurred no liability for such taxes due to net  operating  losses
incurred. Under certain circumstances,  these net operating losses could be used
to offset future taxable  income.  The Company's net deferred tax assets,  which
result  primarily  from the future  benefit of these net operating  losses,  are
fully  offset  by a  valuation  allowance  for the same  amount  because  of the
uncertainty  surrounding  the future  realization  of these net  operating  loss
carryforwards. However, as the Company expands its fiber optic networks in Chile
and Peru, the Company expects to generate  taxable income.  Certain tax benefits
could expire prior to the time the Company generates taxable income.

THREE MONTHS ENDED  SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 1997

                                       11
<PAGE>

     REVENUES. The Company's revenues were $3,836,000 for the three months ended
September 30, 1998 as compared to $268,000 for the three months ended  September
30,  1997.  This  increase  during  the  third  quarter  of 1998  was due to the
acquisition of FirstCom Long Distance. FirstCom Long Distance generated revenues
during the third quarter of 1998 of approximately  $3.6 million through the sale
of approximately 12.7 million minutes resulting in an average revenue per minute
of approximately  $0.28.  FirstCom Network's revenue during the third quarter of
1998 of $189,000  consisted  primarily of equipment sales, data transmission and
system integration services.

     COST OF REVENUES.  The Company's  cost of revenues was  $2,984,000  for the
three  months  ended  September  30, 1998 as compared to $274,000  for the three
months  ended  September  30,  1997.  This  increase  was  attributable  to  the
acquisition of FirstCom Long Distance.

     SELLING,  GENERAL  AND  ADMINISTRATIVE  EXPENSES.  The  Company's  selling,
general and  administrative  expenses were $3,435,000 for the three months ended
September  30,  1998 as  compared  to  $1,257,000  for the  three  months  ended
September 30, 1997. This increase was primarily  attributable to the acquisition
of FirstCom Long Distance.  At September 30, 1998 the Company had  approximately
236 employees compared to 190 employees at June 30, 1998.

     NON CASH  COMPENSATION  AND  CONSULTING  This expense of $4,640,000  during
September  1997, was directly  attributable  to the intrinsic value of shares of
Common Stock and stock options issued to certain  officers and former  directors
of the Company. There were no such transactions or expenses during 1998.


     DEPRECIATION AND AMORTIZATION.  The Company's depreciation and amortization
expenses were $512,000 for the three months ended September 30, 1998 as compared
to $285,000 for the three months ended  September  30, 1997.  This  increase was
primarily  attributable to an increase in depreciation and amortization  expense
related  to  certain  assets  purchased  in the  acquisition  of  FirstCom  Long
Distance.

     INTEREST  EXPENSE.  The Company's  interest  expense was $4,632,000 for the
three months ended  September 30, 1998 as compared to  $1,012,000  for the three
months ended  September  30,  1997.  This  increase  was due to financing  costs
related to the Senior Notes that were issued on October 21,  1997.  Of the total
interest costs incurred by the Company for the three months ended  September 30,
1998 and 1997,


                                       12
<PAGE>

$962,000  and  $100,000,   respectively,  of  such  costs  were  capitalized  in
connection  with the Company's  construction of its fiber optic network in Lima,
Peru.

     INTEREST  INCOME AND OTHER.  The  Company's  interest  income and other was
$1,027,000 for the three months ended  September 30, 1998 as compared to $15,000
for the three  months ended  September  30, 1997.  This  increase was  primarily
attributable  to interest  income  earned on the Company's  restricted  cash and
investments.

     INCOME TAXES.  The Company is subject to federal,  state and foreign income
taxes but has incurred no liability for such taxes due to net  operating  losses
incurred. Under certain circumstances,  these net operating losses could be used
to offset future taxable  income.  The Company's net deferred tax assets,  which
result  primarily  from the future  benefit of these net operating  losses,  are
fully  offset  by a  valuation  allowance  for the same  amount  because  of the
uncertainty  surrounding  the future  realization  of these net  operating  loss
carryforwards. However, as the Company expands its fiber optic networks in Chile
and Peru, the Company expects to generate  taxable income.  Certain tax benefits
could expire prior to the time the Company generates taxable income.

LIQUIDITY AND CAPITAL RESOURCES

     On October 27,  1997,  the Company  consummated  a Senior Note  Offering of
150,000 Units consisting of an aggregate of $150.0 million  aggregate  principal
amount of 14%  Senior  Notes due  October  27,  2007 (the  "Senior  Notes")  and
5,250,000  Unit  Warrants to purchase  5,250,000  shares of Common  Stock of the
Company at an exercise  price of $4.40 per share.  In addition,  UBS  Securities
LLC, the initial purchaser of the Units in the Senior Note Offering, was granted
2,250,000 warrants to acquire 2,250,000 shares of Common Stock of the Company at
an exercise price of $4.40 per share.

     Approximately  $57 million of the proceeds  were invested in an escrow fund
(referred to herein on the Company's balance sheet as "Restricted  Investments")
for payment of interest on the Senior  Notes  through  October 27,  2000.  Under
certain  circumstances,  Restricted  Investments  may be used for  repayment  of
principal of the Senior Notes.  Restricted  investments will be reduced by $10.5
million on April 27 and October 27 during 1998, 1999 and 2000 to pay interest on
the Senior Notes. Approximately $62 million of the proceeds were deposited in an
account  controlled by a trustee  (referred to on the Company's balance sheet as
"Restricted  Cash") for  payment of  Permitted  Expenditures,  as defined in the
Indenture.

     The ability of the Company to make  scheduled  payments with respect to its
indebtedness,  including  interest on the Senior  Notes after  October 27, 2000,
will depend upon, among other things,  (i) its ability to implement its business
plan, and to expand its operations and to successfully develop its customer base
in its target markets,  (ii) the ability of the Company's  subsidiaries to remit
cash  to  the  Company  in a  timely  manner  and  (iii)  the  future  operating
performance of the Company's and its subsidiaries.  Each of these factors is, to
a large extent,  subject to economic,  financial,  competitive,  regulatory  and
other  factors,  many of which are beyond the  Company's  control.  The  Company
expects  that it will  continue  to  generate  cash  losses for the  foreseeable
future. The Company has deposited in escrow funds representing interest payments
with respect to the Senior Notes through October 2000. However, no assurance can
be given that the Company will be  successful in  developing  and  maintaining a
level of cash flow from operations  sufficient to permit it to pay the principal
of, and the interest on the Senior Notes after such time, or with respect to its
other  indebtedness.  If the Company is unable to generate  sufficient cash flow
from operations to service its indebtedness,  including the Senior Notes, it may
have to modify its growth plans,  restructure or refinance its  indebtedness  or
seek  additional  capital.  There  can be no  assurance  that  (i) any of  these
strategies  can be effected on  satisfactory  terms,  if at all, in light of the
Company's  high  leverage  or (ii)  any such  strategy  would  yield  sufficient
proceeds to service the Company's indebtedness,  including the Senior Notes. Any
failure by the Company to satisfy  its  obligations  with  respect to the Senior
Notes at  maturity  or prior  thereto  would  constitute  a  default  under  the
indenture and could cause a default under other agreements  governing current or
future indebtedness of the Company.

     Substantially  all of the Company's assets are held by its subsidiaries and
substantially  all of the  Company's  sales are derived from  operations of such
subsidiaries.  Future  acquisitions  may  be  made  through  present  or  future
subsidiaries  of the  Company.  Accordingly,  the  Company's  ability to pay the
principal  of, and interest and  liquidated  damages,  if any,  when due, on the
Senior  Notes  is  dependent  upon  the  earnings  of its  subsidiaries  and the
distribution   of  sufficient   funds  from  its   subsidiaries   the  Company's
subsidiaries  will have no  obligation,  contingent or otherwise,  to make funds
available  to the Company  for payment of the  principal  of, and  interest  and
liquidated damages on, if any, the Senior Notes. In addition, the ability of the
Company's  subsidiaries  to make such  funds  available  to the  Company  may be
restricted by the terms of such subsidiaries'  current and future  indebtedness,
the  availability  of such funds and the  applicable  laws of the  jurisdictions
under  which  such  subsidiaries  are  organized.   Furthermore,  the  Company's
subsidiaries  will be  permitted  under  the  terms  of the  indenture  to incur
indebtedness that may severely restrict or prohibit the making of distributions,
the  payment of  dividends  or the making of loans by such  subsidiaries  to the
Company. The failure of the Company's subsidiaries to pay dividends or otherwise
make funds  available to the Company could have a material  adverse  effect upon
the  Company's  ability to satisfy its debt service  requirements  including its
ability to make payments on the Senior Notes.

     At September 30, 1998 the Company had  approximately  $91.0 million of cash
and cash equivalents,  restricted cash and restricted  investments.  The Company
believes its current cash balances should be sufficient to satisfy the Company's
liquidity needs through the end of 1999; however, there can be no assurance that
the Company  will have  sufficient  resources to meet its  subsequent  liquidity
requirements.

     To  accelerate  its growth rate and to finance the launch or  build-out  of
additional  markets,  the Company will consider obtaining financing from various
sources,  including vendor financing  provided by equipment  suppliers,  project
financing from commercial banks and international agencies, bank lines of credit
and the sale of equity and debt  securities.  To the extent  that the Company or
any of its subsidiaries  issues debt, its leverage and debt service  obligations
will increase.  There can be no assurance that the Company will be able to raise
such  capital on  satisfactory  terms,  if at all. In  addition,  the  Indenture
related to the  Senior  Notes will  limit the  ability  of the  Company  and its
subsidiaries to incur additional indebtedness.

     As part of its  business  strategy,  the  Company  intends to  continue  to
evaluate  potential  acquisitions,  joint  ventures and  strategic  alliances in
companies  that own existing  networks or companies  that provide  services that
complement the Company's existing businesses.  The Company continues to consider
potential  acquisitions from time to time. New sources of capital such as credit
facilities and other borrowings,  and additional debt and equity issuances,  may
be used to fund such acquisitions and similar strategic investments.

                                       13
<PAGE>

     Net cash used in operating  activities for the nine months ended  September
30,  1998  was  $14,268,000.  This  amount  represented  cash  used to fund  the
Company's  net loss for the period  offset,  in part,  by an increase in accrued
interest on the Senior Notes.

     Net cash used in investing  activities for the nine months ended  September
30, 1998 was $686,000. This amount primarily represented the Company's continued
build-out  of its  fiber-optic  network in Peru offset by the use of  restricted
cash to fund such  build-out.  The growth of the  Company's  fiber  networks was
evidenced as route kilometers and fiber kilometers  increased from approximately
600km and 18,000km, respectively as of June 30, 1998 to approximately 790km and
23,600km,  respectively,  as of  September  30,  1998.  The Company  anticipates
significant capital expenditures during the remainder of 1998.

     Net  cash  provided  by  financing  activities  for the nine  months  ended
September 30, 1998 was $8,081,000.  This amount principally  represented the use
of restricted investments to make interest payments on the Senior Notes.

                                       14
<PAGE>

                                     PART II

                                OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)  The exhibits listed below are filed as part of this Report.

     EXHIBIT                        DESCRIPTION
     -------                        -----------
      27                            Financial Data Schedule for the nine months
                                    ended September 30, 1998

(b) Reports on Form 8-K

     (i)  Preceding  the filing of this Form  10QSB,  on  November  13, 1998 the
          Company filed a report on Form 8-K for purposes of disclosing that the
          Company had (a) changed its certifying accountant from Pricewaterhouse
          Coopers LLP to Ernst & Young LLP and (b) changed  its  corporate  name
          from   "InterAmericas   Communications   Corporation"   to   "FirstCom
          Corporation"

                                       15

<PAGE>

                                   SIGNATURES

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


FIRSTCOM CORPORATION


/s/ PATRICIO E. NORTHLAND                                          11/16/98
-----------------------------------------------------------------  -------
    Patricio E. Northland                                          Date
    Chairman of the Board, President, and Chief Executive Officer
    (Principal Executive Officer)

/s/ DOUGLAS G. GEIB II                                             11/16/98
- ---------------------------------------------------------------  -------
    Douglas G. Geib II                                             Date
    Chief Financial Officer
    (Principal Financial Officer)

                                       16

<PAGE>
                                 EXHIBIT INDEX


EXHIBIT                                   DESCRIPTION
- -------                                   -----------

  27                                 Financial Data Schedule for the nine 
                                     months ended September 30, 1998

                                       17

<PAGE>