LDDS began operations in January 1984 with 200 customers. At first LDDS had neither sufficient technical expertise nor the right technical equipment (such as switching facilities) to win over larger and more profitable companies. In order to grow the company, LDDS needed to invest in equipment and properly trained technical staff, but this was expensive and the company was soon struggling financially. By the end of 1984 LDDS had accumulated debts of about $1.5 million.