<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFIC BELL AND SUBSIDIARIES' DECEMBER 31, 1997 CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> DEC-31-1997 <CASH> 43 <SECURITIES> 0 <RECEIVABLES> 2,436 <ALLOWANCES> 237 <INVENTORY> 0<F1> <CURRENT-ASSETS> 2,703 <PP&E> 29,681 <DEPRECIATION> 17,606 <TOTAL-ASSETS> 15,503 <CURRENT-LIABILITIES> 4,011 <BONDS> 5,588 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 225 <OTHER-SE> 3,048 <TOTAL-LIABILITY-AND-EQUITY> 15,503 <SALES> 0<F2> <TOTAL-REVENUES> 9,938 <CGS> 0<F3> <TOTAL-COSTS> 4,218 <OTHER-EXPENSES> 2,021 <LOSS-PROVISION> 245 <INTEREST-EXPENSE> 461 <INCOME-PRETAX> 54 <INCOME-TAX> 46 <INCOME-CONTINUING> 8 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 342 <NET-INCOME> 350 <EPS-PRIMARY> 0 <EPS-DILUTED> 0 <FN> <F1> THIS AMOUNT IS IMMATERIAL. <F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS INCLUDED IN THE "TOTAL REVENUES" TAG. <F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN COST OF SERVICES AND PRODUCTS IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO REGULATION S-X, RULE 5-03(B). </FN>