<ARTICLE>                     5
<LEGEND>
  This  schedule  contains  summary  financial  information  extracted  from the
audited balance sheet of AT&T at December 31, 1997, and the audited consolidated
statement of income for the twelve-month  period ended December 31, 1997, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER>                                 1,000,000
       
                                          
<PERIOD-TYPE>                                12-mos
<FISCAL-YEAR-END>                            Dec-31-1997
<PERIOD-START>                               Jan-1-1997
<PERIOD-END>                                 Dec-31-1997
<CASH>                                          145
<SECURITIES>                                      0
<RECEIVABLES>                                 9,550
<ALLOWANCES>                                    977
<INVENTORY>                                       0
<CURRENT-ASSETS>                             16,179
<PP&E>                                       44,563
<DEPRECIATION>                               21,853
<TOTAL-ASSETS>                               58,635
<CURRENT-LIABILITIES>                        16,942
<BONDS>                                       6,826
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                      1,624
<OTHER-SE>                                   21,023
<TOTAL-LIABILITY-AND-EQUITY>                 58,635
<SALES>                                           0
<TOTAL-REVENUES>                             51,319
<CGS>                                             0
<TOTAL-COSTS>                                44,351
<OTHER-EXPENSES>                                  0
<LOSS-PROVISION>                              1,957
<INTEREST-EXPENSE>                              191
<INCOME-PRETAX>                               7,193
<INCOME-TAX>                                  2,721
<INCOME-CONTINUING>                           4,472
<DISCONTINUED>                                  166
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<NET-INCOME>                                  4,638
<EPS-PRIMARY>                                  2.85
<EPS-DILUTED>                                  2.84