VIATEL INC
424B3, 1998-08-25
TELEPHONE COMMUNICATIONS (NO RADIOTELEPHONE)
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<PAGE>


                                                          FILED PURSUANT TO
                                                          RULE 424(b)(3)
                                                          REGISTRATION STATEMENT
                                                          NO. 333-58921

                                  VIATEL, INC.

                      Supplement, dated August 24, 1998 to
                        Prospectus, dated August 11, 1998

           ---------------------------------------------------------------------
             THE EXCHANGE OFFER AND WITHDRAWAL  RIGHTS WILL EXPIRE AT 5:OO P.M.,
             NEW YORK CITY  TIME,  ON  WEDNESDAY,  SEPTEMBER  16,  1998,  UNLESS
             EXTENDED.
           ---------------------------------------------------------------------

                  THE  PURPOSE OF THIS  SUPPLEMENT  IS TO  PROVIDE  SUPPLEMENTAL
    INFORMATION REGARDING VIATEL, INC.'S (THE "COMPANY"),  OFFER TO EXCHANGE ITS
    (i) 12.50% SENIOR DISCOUNT NOTES DUE 2008 (DOLLAR DENOMINATED),  (ii) 11.25%
    SENIOR NOTES DUE 2008 (DOLLAR  DENOMINATED),  (iii) 12.40%  SENIOR  DISCOUNT
    NOTES DUE 2008 (DM  DENOMINATED)  AND (iv) 11.15%  SENIOR NOTES DUE 2008 (DM
    DENOMINATED),  EACH OF WHICH HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF
    1933, AS AMENDED (THE "SECURITIES  ACT"), FOR A LIKE PRINCIPAL AMOUNT OF THE
    COMPANY'S (w) 12.50% SENIOR  DISCOUNT  NOTES DUE 2008 (DOLLAR  DENOMINATED),
    (x)  11.25%  SENIOR  NOTES  DUE 2008 (DM  DENOMINATED),  (y)  12.40%  SENIOR
    DISCOUNT  NOTES DUE 2008 (DM  DENOMINATED)  AND (z) 11.15%  SENIOR NOTES DUE
    2008 (DM DENOMINATED),  RESPECTIVELY,  EACH OF WHICH HAS NOT BEEN REGISTERED
    UNDER THE SECURITIES ACT. UNLESS  OTHERWISE  INDICATED OR UNLESS THE CONTEXT
    OTHERWISE  REQUIRES,  ALL  CAPITALIZED  TERMS  USED  HEREIN  SHALL  HAVE THE
    MEANINGS  ASSIGNED SUCH TERMS IN THE PROSPECTUS,  DATED AUGUST 11, 1998 (THE
    "PROSPECTUS"),  OF THE COMPANY.  THE INFORMATION INCLUDED IN THIS SUPPLEMENT
    SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.

    SECOND QUARTER 1998 RESULTS

                  On August 14, 1998, the Company filed its quarterly  report on
    Form 10-Q for the  fiscal  quarter  ended  June 30,  1998.  A summary of the
    Company's results follows.
<TABLE>
<CAPTION>
                                                              For the Three Months Ended       For the Six Months Ended
                                                                      June 30,(1)                      June 30,(1)
                                                              ---------------------------      -------------------------
                                                                 1998             1997            1998            1997
                                                              ----------       ----------      ----------      ---------
                                                                                    (in thousands)
<S>                                                              <C>              <C>             <C>             <C>    
Telecommunications revenue.............................       $  27,751        $  18,448       $  48,990       $  33,001
                                                              ---------        ---------       ---------       ---------   
Operating Expenses:
  Cost of telecommunications services..................          25,096           15,691          44,201          27,770
  Selling, general and administrative expenses.........          10,433            9,645          19,388          18,368
  Depreciation and amortization........................           4,126            1,458           7,037           2,721
                                                              ---------        ---------       ---------       ---------
               Total operating expenses................          39,655           26,794          70,625          48,858
                                                              ---------        ---------       ---------       --------- 
Other income (expense):
  Interest income......................................           9,303            1,053           9,813           2,171
  Interest expense.....................................         (22,550)          (2,978)        (26,331)         (5,987)
                                                              ----------       ----------      ----------      ----------           

Loss before extraordinary loss.........................         (25,151)         (10,271)        (38,154)        (19,673)
  Extraordinary loss on debt payment...................         (28,304)               -         (28,304)              -
                                                              ----------       ----------      ----------      ----------
Net loss...............................................         (53,455)         (10,271)        (66,458)        (19,673)
Dividend on redeemable convertible preferred stock.....          (1,010)               -          (1,010)              -
                                                              ----------       ----------      ----------      ----------
Net loss applicable to common shareholders.............       $ (54,465)       $ (10,271)      $ (67,468)      $ (19,673)
                                                              ==========       ==========      ==========      ==========

Loss per common share before extraordinary item, basic
  and diluted..........................................       $    (1.13)      $   (0.45)      $   (1.71)      $   (0.87)
Loss per common share from extraordinary item..........       $    (1.23)              -           (1.23)              -
                                                              -----------      ----------      ----------      ----------
Net loss per common share applicable to common
  shareholders.........................................       $    (2.36)      $   (0.45)      $   (2.94)      $   (0.87)
                                                              ==========       ==========      ==========      ==========
Weighted average common shares outstanding.............           23,095           22,619          22,940          22,605
                                                              ==========       ==========      ==========      ==========
</TABLE>

- -------------------
(1)    Amounts may not total due to rounding.

<PAGE>

GERMAN NETWORK

     On August 21, 1998, the Company announced that it had executed an agreement
with  Metromedia  Fiber Network and Carrier 1 Holdings Ltd. to jointly develop a
national  fiber  optic  telecommunications  network  in  Germany.  The  proposed
network,  which will be developed  through an entity owned 50.1% by the Company,
will expand the reach of the German portion of the Circe Network being developed
by the Company to include Dortmund,  Bremen, Hamburg, Berlin, Leipzig, Nuremberg
and Munich. Upon completion,  each of the Company,  Metromedia Fiber Network and
Carrier  1  Holdings  Ltd.  will own its own  separate  broadband  network.  The
construction of the network is contingent upon both Metromedia Fiber Network and
Carrier 1 Holdings Ltd. meeting certain financing  requirements.  

     For  details on the Circe  Network,  see  "Summary  -- Circe  Network"  and
"Business -- Circe Network" in the Prospectus.
                              ____________________

     Questions and requests for assistance and requests for additional copies of
the Prospectus and this Supplement should be addressed to the Exchange Agents as
follows:

                           TO THE U.S. EXCHANGE AGENT:

                              The Bank of New York
                             Reorganization Section
                        101 Barclay Street, Floor 7 East
                            New York, New York 10286
                             Attention: Theresa Gass
                         Telephone Number (212) 815-5942


                          TO THE GERMAN EXCHANGE AGENT:

                                Deutsche Bank AG
                  Wertpapierdienste/Kapitaltransaktionen Inland
                         Alfred-Herrhausen--Allee 16-24
                            D-60262 Frankfurt am Main
                                     Germany
                            Attention: Dagmar Riedel
                               011-49-69-910-66809





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