<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFIC BELL
AND SUBSIDIARIES' MARCH 31, 1998 CONSOLIDATED FINANCIAL STATEMENTS, AS RESTATED,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                  1,000,000
       
                                     
<PERIOD-TYPE>                            3-MOS
<FISCAL-YEAR-END>                       DEC-31-1998
<PERIOD-END>                            MAR-31-1998
<CASH>                                           53
<SECURITIES>                                      0
<RECEIVABLES>                                 1,853
<ALLOWANCES>                                    164
<INVENTORY>                                       0<F1>
<CURRENT-ASSETS>                              2,319
<PP&E>                                       28,993
<DEPRECIATION>                               17,761
<TOTAL-ASSETS>                               14,364
<CURRENT-LIABILITIES>                         3,250
<BONDS>                                       5,381
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                       0
<COMMON>                                        225
<OTHER-SE>                                    2,918
<TOTAL-LIABILITY-AND-EQUITY>                 14,364
<SALES>                                           0<F2>
<TOTAL-REVENUES>                              1,118
<CGS>                                             0<F3>
<TOTAL-COSTS>                                   847
<OTHER-EXPENSES>                                451
<LOSS-PROVISION>                                 40
<INTEREST-EXPENSE>                              106
<INCOME-PRETAX>                                 413
<INCOME-TAX>                                    161
<INCOME-CONTINUING>                             252
<DISCONTINUED>                                    0
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<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>