<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PACIFIC BELL'S MARCH 31, 1999 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-31-1999 <PERIOD-END> MAR-31-1999 <CASH> 35 <SECURITIES> 0 <RECEIVABLES> 2,055 <ALLOWANCES> 160 <INVENTORY> 0<F1> <CURRENT-ASSETS> 2,602 <PP&E> 30,169 <DEPRECIATION> 18,544 <TOTAL-ASSETS> 15,407 <CURRENT-LIABILITIES> 4,419 <BONDS> 4,615 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 225 <OTHER-SE> 3,341 <TOTAL-LIABILITY-AND-EQUITY> 15,407 <SALES> 0<F2> <TOTAL-REVENUES> 2,363 <CGS> 0<F3> <TOTAL-COSTS> 896 <OTHER-EXPENSES> 468 <LOSS-PROVISION> 33 <INTEREST-EXPENSE> 103 <INCOME-PRETAX> 513 <INCOME-TAX> 203 <INCOME-CONTINUING> 310 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 310 <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>