<ARTICLE>                     5
<LEGEND>
     This schedule  contains summary  financial  information  extracted from the
audited  balance  sheet of AT&T at June 30, 1997,  and the audited  consolidated
statement  of income  for the  six-month  period  ended  June 30,  1997,  and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER>                                 1,000,000
       
                                          
<PERIOD-TYPE>                                6-mos
<FISCAL-YEAR-END>                            Dec-31-1997
<PERIOD-START>                               Jan-1-1997
<PERIOD-END>                                 Jun-30-1997
<CASH>                                           22
<SECURITIES>                                      0
<RECEIVABLES>                                 9,593
<ALLOWANCES>                                    987
<INVENTORY>                                       0
<CURRENT-ASSETS>                             15,056
<PP&E>                                       40,683
<DEPRECIATION>                               20,755
<TOTAL-ASSETS>                               54,946
<CURRENT-LIABILITIES>                        15,047
<BONDS>                                       7,216
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                      1,625
<OTHER-SE>                                   19,683
<TOTAL-LIABILITY-AND-EQUITY>                 54,946
<SALES>                                           0
<TOTAL-REVENUES>                             25,487
<CGS>                                             0
<TOTAL-COSTS>                                22,337
<OTHER-EXPENSES>                                  0
<LOSS-PROVISION>                              1,032
<INTEREST-EXPENSE>                              108
<INCOME-PRETAX>                               3,266
<INCOME-TAX>                                  1,250
<INCOME-CONTINUING>                           2,016
<DISCONTINUED>                                   69
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<NET-INCOME>                                  2,085
<EPS-PRIMARY>                                  1.28
<EPS-DILUTED>                                  1.28