<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the unaudited consolidated balance sheet of AT&T Corp. at March 31, 1999, and the unaudited consolidated statement of income for the three-month period ended March 31, 1999, and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JAN-01-1999 <PERIOD-END> MAR-31-1999 <CASH> 1,463 <SECURITIES> 0 <RECEIVABLES> 10,526 <ALLOWANCES> 1,143 <INVENTORY> 0 <CURRENT-ASSETS> 13,245 <PP&E> 59,539 <DEPRECIATION> 26,524 <TOTAL-ASSETS> 135,635 <CURRENT-LIABILITIES> 19,443 <BONDS> 22,488 <PREFERRED-MANDATORY> 1,660 <PREFERRED> 0 <COMMON> 3,807 <OTHER-SE> 66,555 <TOTAL-LIABILITY-AND-EQUITY> 135,635 <SALES> 0 <TOTAL-REVENUES> 14,096 <CGS> 0 <TOTAL-COSTS> 11,980 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 386 <INTEREST-EXPENSE> 190 <INCOME-PRETAX> 2,017 <INCOME-TAX> 999 <INCOME-CONTINUING> 1,018 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,018 <EPS-BASIC> 0.39 <EPS-DILUTED> 0.38