<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFIC BELL
AND  SUBSIDIARIES'  SEPTEMBER 30, 1997  CONSOLIDATED  FINANCIAL  STATEMENTS,  AS
RESTATED,  AND IS  QUALIFIED  IN ITS  ENTIRETY BY  REFERENCE  TO SUCH  FINANCIAL
STATEMENTS.
</LEGEND>
       
                                     
<PERIOD-TYPE>                                  9-MOS
<FISCAL-YEAR-END>                       DEC-31-1997
<PERIOD-END>                            SEP-30-1997
<CASH>                                           55
<SECURITIES>                                      0
<RECEIVABLES>                                 2,037
<ALLOWANCES>                                    150
<INVENTORY>                                       0<F1>
<CURRENT-ASSETS>                              2,631
<PP&E>                                       28,383
<DEPRECIATION>                               17,320
<TOTAL-ASSETS>                               14,429
<CURRENT-LIABILITIES>                         4,412
<BONDS>                                       5,105
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                        225
<OTHER-SE>                                    2,553
<TOTAL-LIABILITY-AND-EQUITY>                 14,429
<SALES>                                           0<F2>
<TOTAL-REVENUES>                              6,453
<CGS>                                             0<F3>
<TOTAL-COSTS>                                 2,458
<OTHER-EXPENSES>                              1,477
<LOSS-PROVISION>                                152
<INTEREST-EXPENSE>                              342
<INCOME-PRETAX>                                 (98)
<INCOME-TAX>                                     (5)
<INCOME-CONTINUING>                             (93)
<DISCONTINUED>                                    0
<EXTRAORDINARY>                                   0
<CHANGES>                                       345
<NET-INCOME>                                    252
<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>