<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MICHIGAN BELL TELEPHONE COMPANY'S SEPT. 30, 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> SEP-30-1996 <CASH> 200 <SECURITIES> 0<F1> <RECEIVABLES> 765,000 <ALLOWANCES> (38,900) <INVENTORY> 5,600 <CURRENT-ASSETS> 747,100 <PP&E> 7,985,600 <DEPRECIATION> 4,933,500 <TOTAL-ASSETS> 4,118,400 <CURRENT-LIABILITIES> 742,100 <BONDS> 1,094,300 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,721,800 <OTHER-SE> (336,300) <TOTAL-LIABILITY-AND-EQUITY> 4,118,400 <SALES> 0<F2> <TOTAL-REVENUES> 2,405,000 <CGS> 0<F3> <TOTAL-COSTS> 1,674,900 <OTHER-EXPENSES> (7,500) <LOSS-PROVISION> 54,100 <INTEREST-EXPENSE> 63,300 <INCOME-PRETAX> 674,300 <INCOME-TAX> 234,900 <INCOME-CONTINUING> 439,400 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 439,400 <EPS-PRIMARY> 0 <EPS-DILUTED> 0 <FN> <F1>SECURITIES ARE NOT MATERIAL AND THEREFORE HAVE NOT BEEN STATED SEPARATELY IN THE FINANCIAL STATEMENTS. THIS AMOUNT IS INCLUDED IN THE CASH TAG. <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 SERVICE AND PRODUCTS IN THE FINANCIAL STATEMENTS AND THE "TOTAL COST" TAG, PURSUANT TO REGULATION S-X, RULE 5-03(B). </FN>