<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the unaudited consolidated balance sheet of AT&T Corp. at September 30, 1998, and the unaudited consolidated statement of income for the nine-month period ended September 30, 1998, and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 4,190 <SECURITIES> 0 <RECEIVABLES> 10,412 <ALLOWANCES> 1,029 <INVENTORY> 0 <CURRENT-ASSETS> 15,563 <PP&E> 49,811 <DEPRECIATION> 24,718 <TOTAL-ASSETS> 58,318 <CURRENT-LIABILITIES> 14,723 <BONDS> 6,079 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,631 <OTHER-SE> 21,533 <TOTAL-LIABILITY-AND-EQUITY> 58,318 <SALES> 0 <TOTAL-REVENUES> 39,695 <CGS> 0 <TOTAL-COSTS> 35,394 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 1,050 <INTEREST-EXPENSE> 322 <INCOME-PRETAX> 5,148 <INCOME-TAX> 1,901 <INCOME-CONTINUING> 3,247 <DISCONTINUED> 1,300 <EXTRAORDINARY> (137) <CHANGES> 0 <NET-INCOME> 4,410 <EPS-BASIC> 1.64 <EPS-DILUTED> 1.62