EXHIBIT 12
PACIFIC BELL AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
THREE MONTHS ENDED
MARCH 31, YEAR ENDED DECEMBER 31,
----------------------- ----------------------------------------------------------
1998 1997 1997 1996 1995 1994 1993
--------------------- ----------------------------------------------------------
Income Before Income Taxes,
Extraordinary Loss and
Cumulative Effect of Accounting Changes $ 413 $ 466 $ 34 $ 1,567 $ 1,161 $ 1,276 $ (54)
Add:Interest Expense 106 102 460 379 420 437 429
1/3 Rental Expense 9 10 41 47 29 22 23
--------- --------- -------- --------- ---------- ---------- -----------
Adjusted Earnings $ 528 $ 578 $ 535 $ 1,993 $ 1,610 $ 1,735 $ 398
========= ========= ======== ========= ========== ========== ===========
Total Interest Charges $ 115 $ 112 $ 497 $ 412 $ 420 $ 437 $ 429
1/3 Rental Expense 9 10 41 47 29 22 23
--------- --------- -------- --------- ---------- ---------- -----------
Adjusted Fixed Charges $ 124 $ 122 $ 538 $ 459 $ 449 $ 459 $ 452
========= ========= ======== ========= ========== ========== ===========
Ratio of Earnings to Fixed Charges 4.26 4.74 0.99* 4.34 3.59 3.78 0.88**
<FN>
* As defined within the computation of earnings to fixed charges, earnings are
$3 less than fixed charges for 1997. See Management's Discussion and Analysis
of Results of Operations in Pacific Bell's 1997 Annual Report on Form 10-K
for a discussion of merger-related and other unusual items that reduced
earnings for 1997.
** As defined within the computation of earnings to fixed charges, earnings are
$54 less than fixed charges for 1993. See Management's Discussion and
Analysis-Other Business Matters in Pacific Bell's 1997 Annual Report on Form
10-K for a discussion of the restructuring charge which reduced earnings for
1993.
</FN>