As the telecommunications industry responds to the rapidly growing demand for wireless services in the commercial and residential sectors, data suppliers are trying to tailor their products to competitively meet the needs of this lucrative market. One such service is a high frequency point-to-multipoint system for urban areas called LMDS (local multipoint distribution service). Two requirements of LMDS provide a challenge for system designers: 1) there must be line of sight between transmitter and receiver, and 2) a fairly dense pattern of transmitters is required because these microwave radio waves travel only a short distance before weakening and dispersing. Therefore, high resolution geographic databases that accurately depict potential signal obstructions—terrain, buildings and major foliage—are necessary. LIDAR technology has emerged as an alternative to the traditional method of using digital orthophotography to derive footprints and elevations of urban features. Its ability to produce high resolution (1-3 meters) databases and sub-meter accuracies has advantages and disadvantages for telecom planning. The detailed picture of the urban landscape can assist engineers as they design high-frequency wireless systems. But the high resolutions may generate an unwieldy amount of data when applied to the entire urban area. In this paper, LIDAR data is used as a basis for signal prediction studies, and suggestions for and issues surrounding its use are discussed.