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                          SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C.   20549
                                           
                                     FORM 10-QSB
                                           
                                           
               [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) 
                        OF THE SECURITIES EXCHANGE ACT OF 1934
                                           
                    FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997
                                           
                                          OR
                                           
               [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                        OF THE SECURITIES EXCHANGE ACT OF 1934
                                           
                           COMMISSION FILE NUMBER  0-27024

                                           
                          METRO ONE TELECOMMUNICATIONS, INC.
                                           
                 (INCORPORATED UNDER THE LAWS OF THE STATE OF OREGON)
                                           
                  8405 S.W. NIMBUS AVENUE,  BEAVERTON, OREGON 97008
                                           
                                           
                   I.R.S. EMPLOYER IDENTIFICATION NUMBER 93-0995165
                                           
                         TELEPHONE - AREA CODE (503) 643-9500
                                           

   INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS 
REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE EXCHANGE ACT DURING THE 
PAST 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 
      ---     ---


AT MAY 5, 1997, 10,783,303 COMMON SHARES WERE OUTSTANDING.


     TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES     NO  X
                                                                    ---    ---
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                          METRO ONE TELECOMMUNICATIONS, INC.
                                           
                                           
                                INDEX TO FORM 10-QSB
                                           
                                           

Part I   Financial Information                                      Page No.
         
         Condensed Statements of Operations (Unaudited) 
            Three months ended March 31, 1997 and 1996                    1
         
         Condensed Balance Sheets  (Unaudited)
            March 31, 1997 and December 31, 1996                          2

         Condensed Statements of Cash Flows  (Unaudited)
            Three months ended March 31, 1997 and 1996                    3

         Notes to Condensed Financial Statements                          4-5

         Management's Discussion and Analysis of Financial
            Condition and Results of Operations                           6-8

Part II  Other Information

         Item 5.   Other Information                                      8

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


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METRO ONE TELECOMMUNICATIONS, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)                            
------------------------------------------------------------------------------

                                                   THREE MONTHS ENDED MARCH 31,
                                                   ----------------------------
                                                      1997             1996
                                                   -----------      -----------
Revenues                                           $ 4,486,012      $ 4,228,313
                                                   -----------      -----------

Costs and expenses:
    Direct operating                                 2,433,738        1,994,170
    General and administrative                       2,503,771        1,739,798
                                                   -----------      -----------
                                                     4,937,509        3,733,968
                                                   -----------      -----------

Income (loss) from operations                         (451,497)         494,345

Other income (expense)                                 159,194          (38,926)
Interest and loan fees                                 (98,225)        (162,290)
                                                   -----------      -----------

Income (loss) before income taxes                     (390,528)         293,129
Income tax expense                                          --            7,950
                                                   -----------      -----------
Net income (loss)                                  $  (390,528)     $   285,179
                                                   -----------      -----------
                                                   -----------      -----------

Weighted average number of common shares 
  outstanding                                       10,756,030        8,118,107

Net income (loss) per common share                 $      (.04)     $       .03
                                                   -----------      -----------
                                                   -----------      -----------

             The accompanying notes are an integral part of this statement.
                                        1
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METRO ONE TELECOMMUNICATIONS, INC.

CONDENSED BALANCE SHEETS (UNAUDITED)                            
-------------------------------------------------------------------------------

                                                    MARCH 31,      DECEMBER 31,
                                                   -----------     -----------
                                                      1997            1996
                                                   -----------     -----------
                                                   (UNAUDITED)
ASSETS

Current assets: 
    Cash and cash equivalents                      $ 12,748,362    $ 14,136,574
    Accounts receivable                               2,554,076       2,722,544
    Other current assets                                657,774         537,077
                                                   -----------      -----------

      Total current assets                           15,960,212      17,396,195

Furniture, fixtures and equipment, net                7,891,545       6,759,759
Other assets                                            673,298         373,391
                                                   -----------      -----------

                                                   $ 24,525,055    $ 24,529,345
                                                   -----------      -----------
                                                   -----------      -----------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Current portion of capital lease obligations   $    719,739    $    736,941
    Accounts payable and accrued expenses               936,215       1,062,440
    Other current liabilities                           790,520         581,108
                                                   -----------      -----------

      Total current liabilities                       2,446,474       2,380,489

Capital lease obligations, less current portion       1,006,269       1,168,204
                                                   -----------      -----------

                                                      3,452,743       3,548,693
                                                   -----------      -----------

Commitments and contingencies                                --              --


Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares
    authorized, no shares issued or outstanding              --              --
Common stock, no par value; 490,000,000 shares
    authorized,  10,783,303 and 10,692,887 shares,
    respectively,  issued and outstanding            36,733,628      36,251,440
Accumulated deficit                                 (15,661,316)    (15,270,788)
                                                   -----------      -----------

Net shareholders' equity                             21,072,312      20,980,652
                                                   -----------      -----------

                                                   $ 24,525,055    $ 24,529,345
                                                   -----------      -----------
                                                   -----------      -----------

             The accompanying notes are an integral part of this statement.
                                        2
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METRO ONE TELECOMMUNICATIONS, INC.

CONDENSED CASH FLOW STATEMENTS (UNAUDITED)                 
-------------------------------------------------------------------------------

                                                   THREE MONTHS ENDED MARCH 31,
                                                   ----------------------------
                                                      1997             1996
                                                   -----------      -----------
Cash flows from operating activities:
    Net income (loss)                              $  (390,528)     $   285,179
    Adjustments to reconcile net income (loss) 
      to net cash provided by operating 
      activities:
        Depreciation and amortization                  457,231          269,694
    Changes in certain assets and liabilities:
      Accounts receivable                              168,468         (256,515)
      Prepaid expenses and other assets               (231,472)        (179,977)
      Accounts payable and accrued expenses            111,247          245,685
                                                   -----------      -----------

        Net cash provided by operating activities      114,946          364,066
                                                   -----------      -----------

Cash flows from investing activities:
    Capital expenditures                            (1,536,949)         (66,624)
    Collections on notes receivable                        740              846
                                                   -----------      -----------

        Net cash used in investing activities       (1,536,209)         (65,778)
                                                   -----------      -----------

Cash flows from financing activities:
    Repayment of capital lease obligations            (179,137)        (245,894)
    Repayment of debt                                       --          (96,972)
    Proceeds from issuance of common stock and 
      exercise of warrants and stock options, net      212,188          497,397
                                                   -----------      -----------
    
        Net cash provided by financing activities       33,051          154,531
                                                   -----------      -----------

Net increase (decrease) in cash and cash 
  equivalents                                       (1,388,212)         452,819

Cash and cash equivalents, beginning of period      14,136,574        1,148,822
                                                   -----------      -----------

Cash and cash equivalents, end of period           $12,748,362      $ 1,601,641
                                                   -----------      -----------
                                                   -----------      -----------

             The accompanying notes are an integral part of this statement.
                                        3
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METRO ONE TELECOMMUNICATIONS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)    
-------------------------------------------------------------------------------

1.  BASIS OF PRESENTATION

The interim financial data are unaudited, however, in the opinion of 
management, the interim data include all adjustments, consisting only of 
normal recurring adjustments, necessary for a fair statement of the results 
for the interim periods.  The financial statements included herein have been 
prepared by the Company pursuant to the rules and regulations of the 
Securities and Exchange Commission.  Certain information and footnote 
disclosures normally included in financial statements prepared in accordance 
with generally accepted accounting principles have been condensed or omitted 
pursuant to such rules and regulations, although the Company believes that 
the disclosures included herein are adequate to ensure that the information 
presented is not misleading.

The organization and business of the Company, accounting policies followed by 
the Company and other information are contained in the notes to the Company's 
audited financial statements contained in and filed as part of the Form 
10-KSB, filed with the Securities and Exchange Commission.  This quarterly 
report should be read in conjunction with the audited financial statements.

RECLASSIFICATION.  Certain balances in the 1996 financial statements have 
been reclassified to conform with 1997 presentation.  Such reclassifications 
have no effect on results of operations or shareholders' equity.

2.   NET INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE

Net income (loss) per common and common equivalent share is computed using 
the weighted average number of common and dilutive common equivalent shares 
assumed to be outstanding during the period.  Common equivalent shares 
consist primarily of options and warrants to purchase common stock.  Primary 
and fully diluted earnings per share are not presented for 1997 and 1996 
since dilution is less than three percent.

3.   COMMITMENTS AND CONTINGENCIES

The Company is party to various legal actions and administrative proceedings 
arising in the ordinary course of business.  The Company believes that the 
disposition of these matters will not have a material adverse effect on its 
financial position,  results of operations or net cash flows.

4.   BANK LINE OF CREDIT 

The Company has a $3,000,000 Secured Operating Line of Credit with a 
commercial bank.  Under the terms of the agreement, outstanding borrowings 
bear interest at prime rate plus 0.25 percent and all assets of the Company 
are pledged as collateral.  The agreement contains minimum net worth and 
working capital requirements as well as certain other restrictive covenants, 
as defined by the agreement, and prohibits the payment of cash dividends.  
Availability of the unused portion of the line of credit is subject to 
borrowing base requirements and compliance with loan covenants.  At March 31, 
1997, the Company had no borrowings against this line of credit.

                                      4
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METRO ONE TELECOMMUNICATIONS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)    
-------------------------------------------------------------------------------

5.   SUPPLEMENTAL CASH FLOW INFORMATION

                                                            1997       1996 
                                                         ----------  ----------
  Cash paid for interest expense                         $   91,809  $  179,168
  Conversion of debt into common stock                           --   1,300,000
  Equipment acquired by capital lease                            --     374,015
  Common stock issued in settlement of litigation           270,000          --

6.   ACCOUNTING PRONOUNCEMENT

In February 1997, the Financial Accounting Standards Board issued SFAS No. 
128, "Earnings Per Share," which establishes new standards for computing and 
presenting earnings per share (EPS) for entities having publicly held common 
stock or potential common stock.  SFAS No. 128 replaces the presentation of a 
primary EPS with a basic EPS on the face of the income statement for entities 
with complex capital structures, and additional disclosures regarding the 
computation of EPS.

SFAS No. 128 will require changes in the computation and presentation of the 
Company's EPS commencing with the financial statements for the year ending 
December 31, 1997.  Earlier application of this Statement is not permitted. 
However, if the Company computed its EPS for the three months ended March 31, 
1997 and 1996 in a manner consistent with SFAS No. 128, the pro forma amounts 
would have been as follows:

                                      For the Three Months Ended March 31,
                                           1997                   1996    
                                   ---------------------   -------------------
                                               Per Share             Per Share
                                    Shares       Amount      Shares    Amount
                                   ----------  ---------   --------- ---------
Basic Earnings (Loss) Per Share    10,756,030    ($0.04)   8,118,107   $0.04
Diluted Earnings (Loss) Per Share  10,926,243    ($0.04)   8,553,455   $0.03

                                      5
<PAGE>

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

     All statements and trend analyses contained in this item and elsewhere 
in this report on Form 10-QSB relative to the future constitute 
"forward-looking statements" within the meaning of the Private Securities 
Litigation Reform Act of 1995.  These forward-looking statements are subject 
to the business and economic risks faced by the Company and the Company's 
actual results of operations may differ materially from those contained in 
the forward looking statements.  Readers are cautioned not to place undue 
reliance on these forward-looking statements, which speak only as of the date 
hereof.  The Company undertakes no obligation to publicly release any 
revisions to these forward-looking statements to reflect events or 
circumstances after the date hereof or to reflect the occurrence of 
unanticipated events.

     Results of operations for the periods discussed below should not be 
considered indicative of the results to be expected in any future period and 
fluctuations in operating results may also result in fluctuations in the 
market price of the Company's Common Stock.  The Company's quarterly and 
annual operating results have in the past and may in the future vary 
significantly depending on factors such as increased competition and 
expiration of Enhanced Directory Assistance ("EDA") contracts, the rapidly 
changing telecommunications market, changes in pricing policies by the 
Company or its competitors, lengthy sales cycles, lack of market acceptance 
or delays in the introduction of new versions of the Company's product or 
features, the timing of the initiation of wireless services in new market 
areas by telecommunications customers, and general economic conditions.

OVERVIEW
               
     The Company continues to expand its network of call centers into new 
geographic markets through existing call centers and the opening of new call 
centers.  A call center serving the New York area initially for Personal 
Communications Service ("PCS") customers is in start-up phase.  Projected 
opening is for the second quarter of 1997.   The Company expects to open 
several new call centers during the remainder of 1997, serving PCS and 
potentially cellular customers.

     In January 1997, the Company discontinued service to GTE Mobilnet in the 
San Diego market.  During 1996 this contract accounted for approximately five 
percent of the Company's revenues.  GTE Mobilnet, previously operating under 
the terms of a contract between the Company and US West NewVector, which 
contract was to have been assigned to GTE Mobilnet as part of a market swap 
between the two carriers, transferred service to a GTE operator services 
entity.
               
     The San Diego call center is currently serving two PCS carrier customers 
rolling out service in California and Nevada.   One of these carrier 
customers is served under a trial arrangement.

RESULTS OF OPERATIONS

     The following table sets forth for the periods indicated selected items 
of the Company's statements of operations as a percentage of revenues.

                                 Three Months Ended
                                     March 31,
                                 ------------------
                                   1997      1996
                                 --------   -------
Revenues                          100.0%     100.0%
Direct operating costs             54.3       47.2
General and administrative costs   55.8       41.1
Operating profit (loss)           (10.1)      11.7
Interest and loan fees              2.2        3.8

                                      6
<PAGE>

COMPARISON OF FIRST QUARTER 1997 TO FIRST QUARTER 1996

     Revenues increased 6.1% to $4.5 million from $4.2 million.  Revenues 
from existing call centers grew 5.9% and accounted for substantially all of 
this increase.  This net increase is due exclusively to increases in call 
volumes at all call centers except San Diego, which experienced a decrease in 
call volume due to the completion of a contract with AirTouch and 
discontinuation of service to GTE Mobilnet.
               
     Revenue growth is less than in prior reported periods, primarily due to 
the conclusion of service to two carriers from the San Diego call center.  
Excluding the revenue related to this concluded service, revenue from 
existing customers increased 16.2% in the first quarter of 1997 compared to 
the first quarter of 1996.

     Direct operating costs increased 22.0% to $2.4 million from $2.0 
million. The increase was primarily due to the cost of operating an 
additional call center  in 1997 and to increased call volumes.  As a 
percentage of revenues, direct operating costs increased to 54.3% from 47.2% 
primarily due to costs associated with two call centers serving only PCS 
customers with recently initiated service and accordingly relatively small 
call volumes.  As these PCS carriers increase market penetration and generate 
increased call volumes, the proportionate relationship of direct costs to 
revenue is expected to decline. However, no assurance can be given that 
market penetration will increase or that if it does, the call volumes will be 
significant enough to impact the relationship of direct operating costs to 
revenue. In addition, prior to efficient utilization of personnel and data, 
the servicing of new geographic markets from existing call centers increases 
direct operating costs as a percentage of revenue.

     General and administrative costs increased 43.9% to $2.5 million from 
$1.7 million.  As a percentage of revenues, general and administrative costs 
increased to 55.8% from 41.2% of revenues.  This increase resulted primarily 
from increased depreciation and amortization expense, expansion of technical 
and support staff, the support of increased operational activity overall and 
costs associated with the operation of an additional call center during 1997. 
The Company is also in the process of opening a new call center to serve the 
New York area.  Although the pre-opening costs will be primarily recognized 
in the second quarter of 1997, approximately $20,000 of general and 
administrative costs were recognized and certain capital equipment was 
acquired in the first quarter. Depreciation and amortization increased by 
69.5% to $457,231 from $269,694 due to equipment upgrades for existing call 
centers and the acquisition of new equipment for one new call center.

     Other income for the three months ended March 31, 1997 was $159,194 and 
consisted primarily of interest income.  Other expense for the three months 
ended March 31, 1996 was $38,926 and consisted primarily of litigation 
settlement expenses of approximately $49,000 and interest income of $13,224.

     Interest expense and loan fees declined 39.5% to $98,225 from $162,290. 
This decline was attributable solely to the reduction in average debt 
outstanding to $1.8 million from $3.8 million.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's cash and cash equivalents are recorded at cost which 
approximates their fair market value.  As of March 31, 1997 the Company had 
$12.7 million in cash and cash equivalents compared to $14.1 million at 
December 31, 1996, a decrease of $1.4 million primarily from acquisition of 
equipment.

     Working capital was $13.5 million at March 31, 1997, compared to $15.0 
at December 31, 1996.  The decline is primarily due to use of cash for 
capital equipment acquisitions, a decrease in outstanding accounts receivable 
and an increase in current liabilities.
 
     The Company has a two year, $3.0 million secured operating line of 
credit with a commercial bank.  Availability of the unused portion of the 
line of credit is subject to borrowing base requirements and compliance with 
loan covenants.  At March 31, 1997, the Company had no borrowing against the 
line of credit.

     CASH FLOW FROM OPERATIONS.  Net cash from operations for the three 
months ended March 31, 1997 was $114,946, resulting primarily from the effect 
of the noncash item, depreciation and amortization.  One existing call

                                      7
<PAGE>

center and one new call center primarily serve PCS customers which have 
recently initiated service in some of their respective markets.  Due to 
the relatively small call volumes in these markets, these call centers were 
net users of cash, while most existing call centers contributed to cash flow 
from operations during the three months ended March 31, 1997.

     CASH FLOW FROM INVESTING ACTIVITIES.  Cash used in investing activities 
was $1.5 million and was primarily related to capital expenditures for system 
redundancy capabilities, equipment upgrades for certain locations and 
acquisitions for a new call center in the New York area and relocation of an 
existing call center.  

     CASH FLOW FROM FINANCING ACTIVITIES.  Net cash provided by financing 
activities was $33,051 and was primarily from the exercise of outstanding 
warrants and stock options.

     FUTURE CAPITAL NEEDS AND RESOURCES.  The Company's future needs for 
financial resources include amounts for purchase of equipment for the 
upgrading of existing and establishment of new call centers and funding of 
start-up losses for newly opened call centers.  The Company believes its 
existing capital resources and cash generated from operations will be 
sufficient to meet its working capital and capital expenditure requirements 
for the next twelve months.

PART II. OTHER INFORMATION

ITEM 5.  OTHER INFORMATION.

     SUBSEQUENT EVENT.  The Company announced on May 7, 1997 that it had 
signed a multi-year, national agreement with AT&T Wireless Services under 
which regions of AT&T Wireless Services and its affiliates may elect to offer 
the Company's EDA services to their subscribers.  Specific regional decisions 
to enter into the agreement have not yet been finalized.  The timing and 
amount of revenues and expenses associated with this agreement are difficult 
to predict and will be primarily dependent on the number of regions which 
enter into the agreement, the timing of when the Company begins to provide 
its EDA service for those regions, the directory assistance call volumes 
achieved in those markets and the timing and number of new call center 
openings, if any.
               
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) EXHIBITS 
                    
                    There are no exhibits to this report.  

         (b) REPORTS FILED ON FORM 8-K
               
                    There were no reports filed on Form 8-K in the first 
quarter ended March 31, 1997.

                                      8
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                                  SIGNATURE

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

                                        METRO ONE TELECOMMUNICATIONS, INC.
                                        ----------------------------------
                                                  Registrant

Date:          May 12, 1997



                                          Stebbins B. Chandor, Jr.    
                                        ------------------------------
                                        Stebbins B. Chandor, Jr.
                                        Senior Vice President
                                        Chief Financial Officer

                                   
                                            Karen L. Johnson
                                        ------------------------------
                                        Karen L. Johnson
                                        Vice President
                                        Controller


                                      9