1 EXHIBIT 12.1 OPTEL, INC. DEFICIENCY OF EARNINGS TO FIXED CHARGES Period from April 20, 1993 (Date of Eight Month Inception) to Year Ended Period Ended Year Ended Year Ended December 31, December 31, August 31, August 31, August 31, ------------------------------------------------------------------------ 1993 1994 1995 1996 1997 ---- ---- ---- ---- ---- Loss before income taxes $ (307) $ (7,944) $ (10,630) $ (18,430) $ (48,535) Plus: fixed charges before capitalized interest 3 114 1,473 6,402 32,335 ------------------------------------------------------------------------ Total loss $ (304) $ (7,830) $ (9,157) $ (12,028) $ (16,200) ======================================================================== Fixed charges Financial expenses (per financial statements) $ 3 $ 76 $ 1,268 $ 5,999 $ 31,414 Interest factor of rental expense of operating leases - 38 205 403 921 ------------------------------------------------------------------------ Total fixed charges before capitalized interest 3 114 1,473 6,402 32,335 Capitalized interest - - - 1,850 2,256 ------------------------------------------------------------------------ Total fixed charges $ 3 $ 114 $ 1,473 $ 8,252 $ 34,591 ======================================================================== Deficiency of earnings to fixed charges $ 307 $ 7,944 $ 10,630 $ 20,280 $ 50,791 ======================================================================== Operating lease expense per financial statements $ - $ 113 $ 616 $ 1,208 $ 2,763 ======================================================================== Year Ended August 31, ------------ 1998 ---- Loss before income taxes $ (74,398) Plus: fixed charges before capitalized interest 49,769 ------------ Total loss $ (24,629) ============ Fixed charges Financial expenses (per financial statements) $ 48,477 Interest factor of rental expense of operating leases 1,292 ------------ Total fixed charges before capitalized interest 49,769 Capitalized interest 2,753 ------------ Total fixed charges $ 52,522 ============ $ 77,151 Deficiency of earnings to fixed charges ============ Operating lease expense per financial statements $ 3,876 ============