EXHIBIT 12
PACIFIC BELL
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
SIX MONTHS ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
------------------- --------------------------------------------------------
1999 1998 1998 1997 1996 1995 1994
------------------- --------------------------------------------------------
Income Before Income Taxes, Extraordinary Loss
and Cumulative Effect of Accounting Changes $ 1,050 $ 941 $ 1,871 $ 34 $ 1,568 $ 1,161 $ 1,276
Add:Interest Expense 203 216 426 460 379 420 437
1/3 Rental Expense 18 19 39 41 47 29 22
--------- -------- --------- --------- --------- --------- ----------
Adjusted Earnings $ 1,271 $ 1,176 $ 2,336 $ 535 $ 1,994 $ 1,610 $ 1,735
========= ======== ========= ========= ========= ========= ==========
Total Interest Charges $ 220 $ 233 $ 461 $ 497 $ 412 $ 420 $ 437
1/3 Rental Expense 18 19 39 41 47 29 22
--------- -------- --------- --------- --------- --------- ----------
Adjusted Fixed Charges $ 238 $ 252 $ 500 $ 538 $ 459 $ 449 $ 459
========= ======== ========= ========= ========= ========= ==========
Ratio of Earnings to Fixed Charges 5.34 4.67 4.67 0.99* 4.34 3.59 3.78
<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.
</FN>