Exhibit 18


August 8, 1997



Mr. Donald Kiernan
Senior Vice President, Treasurer and
   Chief Financial Officer
SBC Communications, Inc.
175 W. Houston Street
San Antonio, Texas  78205



Dear Mr. Kiernan:

Note 3 of Notes to Consolidated  Financial  Statements of Pacific Bell (PacBell)
included  in its Form 10-Q for the six  months  ended  June 30,  1997  describes
changes in the methods of accounting for pensions and  postretirement  benefits.
You have  advised  us that you  believe  that the  changes  are to  conform  the
accounting of SBC Communications Inc. (SBC) and PacBell and that the new methods
are preferable because the new methods for pensions and postretirement  benefits
are  more  widely  used.  These  changes  were  made by SBC in its  consolidated
financial  statements  reflecting the business  combination with Pacific Telesis
Group  accounted  for as a pooling of  interests,  as reported in SBC's Form 8-K
dated May 8, 1997.

We  conclude  that the  changes  in the  methods  for  accounting  for the items
described  above are to  acceptable  alternative  methods  which,  based on your
business  judgment  to make these  changes  for the  reasons  cited  above,  are
preferable in your  circumstances.  We have not conducted an audit in accordance
with  generally  accepted  auditing  standards of any  financial  statements  of
PacBell as of any date or for any period and  therefore  we do not  express  any
opinion on any financial statements of Pacific Bell.



                                           ERNST & YOUNG LLP