<ARTICLE>                     5
<LEGEND>
     This schedule  contains summary  financial  information  extracted from the
audited  balance sheet of AT&T at March 31, 1997,  and the audited  consolidated
statement of income for the  three-month  period  ended March 31,  1997,  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-31-1997
<PERIOD-START>                               Jan-1-1997
<PERIOD-END>                                 Mar-31-1997
<CASH>                                          198
<SECURITIES>                                      0
<RECEIVABLES>                                 9,687
<ALLOWANCES>                                    999
<INVENTORY>                                       0
<CURRENT-ASSETS>                             15,724
<PP&E>                                       39,457
<DEPRECIATION>                               20,151
<TOTAL-ASSETS>                               54,461
<CURRENT-LIABILITIES>                        14,464
<BONDS>                                       7,867
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                      1,624
<OTHER-SE>                                   19,242
<TOTAL-LIABILITY-AND-EQUITY>                 54,461
<SALES>                                           0
<TOTAL-REVENUES>                             12,662
<CGS>                                             0
<TOTAL-COSTS>                                11,023
<OTHER-EXPENSES>                                  0
<LOSS-PROVISION>                                549
<INTEREST-EXPENSE>                               52
<INCOME-PRETAX>                               1,755
<INCOME-TAX>                                    667
<INCOME-CONTINUING>                           1,088
<DISCONTINUED>                                   38
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<NET-INCOME>                                  1,126
<EPS-PRIMARY>                                   .69
<EPS-DILUTED>                                   .69