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                                                                    EXHIBIT 11.4



                            ALLEGIANCE TELECOM, INC.
                    COMPUTATION OF PER SHARE EARNINGS (LOSS)
                         SIX MONTHS ENDED JUNE 30, 1999
                (Dollars in thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                                 Number of Shares     Percent Outstanding      Equivalent Shares
                                                                 ----------------     -------------------      -----------------
<S>                                                              <C>                  <C>                      <C>
Prior to Initial Public Offering
     1997 Common Stock Offering                                               639                  100.00%                   639

After Initial Public Offering
     1998 Common Stock Offering                                        15,000,000                  100.00%            15,000,000
     Preferred Stock Converted to Common Stock                         60,511,692                  100.00%            60,511,692
     1999 Common Stock Offering                                        21,041,100                   39.30%             8,269,679
     Treasury Shares                                                      (37,968)                  70.00%               (26,577)
     Warrants Exercised                                                   383,240                   34.22%               131,127
     Stock Options Exercised                                               44,030                   25.46%                11,209
     Employee Stock Discount Purchase Plan Shares Issued                  100,844                   81.33%                82,020
                                                                                                                 ---------------
     WEIGHTED AVERAGE SHARES OUTSTANDING                                                                              83,979,789

     NET LOSS APPLICABLE TO COMMON STOCK                                                                         $   (93,382,000)

     NET LOSS PER SHARE, BASIC AND DILUTED                                                                       $         (1.17)
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</TABLE>



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