<ARTICLE>                     5
<LEGEND>
     This schedule  contains summary  financial  information  extracted from the
audited   balance  sheet  of  AT&T  at  September  30,  1997,  and  the  audited
consolidated  statement of income for the nine-month  period ended September 30,
1997,  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-31-1997
<PERIOD-START>                               Jan-1-1997
<PERIOD-END>                                 Sep-30-1997
<CASH>                                          186
<SECURITIES>                                      0
<RECEIVABLES>                                 9,927
<ALLOWANCES>                                  1,046
<INVENTORY>                                       0
<CURRENT-ASSETS>                             15,632
<PP&E>                                       42,387
<DEPRECIATION>                               21,423
<TOTAL-ASSETS>                               56,449
<CURRENT-LIABILITIES>                        15,957
<BONDS>                                       7,054
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                      1,625
<OTHER-SE>                                   20,360
<TOTAL-LIABILITY-AND-EQUITY>                 56,449
<SALES>                                           0
<TOTAL-REVENUES>                             38,491
<CGS>                                             0
<TOTAL-COSTS>                                33,566
<OTHER-EXPENSES>                                  0
<LOSS-PROVISION>                              1,501
<INTEREST-EXPENSE>                              152
<INCOME-PRETAX>                               5,124
<INCOME-TAX>                                  1,975
<INCOME-CONTINUING>                           3,149
<DISCONTINUED>                                  155
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<NET-INCOME>                                  3,304
<EPS-PRIMARY>                                  2.03
<EPS-DILUTED>                                  2.03