1
                                                                         EX-11.1


               STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS


AETHER SYSTEMS, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE



                                                                  Computation of Earnings
                                                                      per Common Share
                                        -------------------------------------------------------------------------
                                                          (in thousands, except per share data)

                                                Three Months Ended                    Twelve months Ended
                                                December 31, 1999                      December 31, 1999
                                        ----------------------------------    -----------------------------------
                                        Net Loss      Shares     Per Share    Net Loss      Shares      Per Share
                                        --------      ------     ---------    --------      ------      ---------
                                                                                      
BASIC EPS
Pro forma net loss available
  To common shareholders                (23,522)      25,076      (0.94)      (30,691)      21,207       (1.45)

EFFECT OF DILUTIVE SHARES
Stock options                                --           --         --            --           --          --
                                        -------       ------      -----       -------       ------       -----
DILUTIVE EPS (1)
Pro forma net loss available
  to common shareholders                (23,522)      25,076      (0.94)      (30,691)      21,207       (1.45)
                                        -------       ------      -----       -------       ------       -----




                                                                  Computation of Earnings
                                                                      per Common Share
                                        -------------------------------------------------------------------------
                                                          (in thousands, except per share data)

                                                Three Months Ended                    Twelve months Ended
                                                December 31, 2000                      December 31, 2000
                                        ----------------------------------    -----------------------------------
                                        Net Loss      Shares     Per Share    Net Loss      Shares      Per Share
                                        --------      ------     ---------    --------      ------      ---------
                                                                                     
BASIC EPS
Pro forma net loss available
  To common shareholders               (132,254)      39,283      (3.37)     (362,700)      36,310       (9.99)

EFFECT OF DILUTIVE SHARES
Stock options                                --           --         --            --           --          --
                                       --------       ------      -----      --------       ------       -----
DILUTIVE EPS (1)
Pro forma net loss available
  to common shareholders               (132,254)      39,283      (3.37)     (362,700)      36,310       (9.99)
                                       --------       ------      -----      --------       ------       -----


1. Options and warrants to purchase approximately 3,920,358 million and
5,074,093 million shares of common stock were outstanding at September 30, 2000
and 1999 respectively and were not included in the computation of pro forma
diluted earnings per share because the effect would have been antidilutive.
Additionally, effective March 22, 2000, the Company issued $310.5 million of 6%
convertible subordinated notes due 2005, which are convertible at a price of
$243.95 (or 4.0992 shares per $1,000 principal amount of notes, subject to
adjustment. These notes were not considered in the calculation of the pro forma
diluted earnings per share because the effect would have been antidilutive.