<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