<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MICHIGAN BELL TELEPHONE COMPANY'S SEPTEMBER 30, 1998 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-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 138,200 <SECURITIES> 0<F1> <RECEIVABLES> 766,600 <ALLOWANCES> (73,000) <INVENTORY> 20,000 <CURRENT-ASSETS> 876,600 <PP&E> 8,652,300 <DEPRECIATION> 5,778,100 <TOTAL-ASSETS> 4,212,500 <CURRENT-LIABILITIES> 754,300 <BONDS> 994,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,721,800 <OTHER-SE> (163,300) <TOTAL-LIABILITY-AND-EQUITY> 4,212,500 <SALES> 0<F2> <TOTAL-REVENUES> 2,616,100 <CGS> 0<F3> <TOTAL-COSTS> 1,848,700 <OTHER-EXPENSES> (9,400) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 62,100 <INCOME-PRETAX> 714,700 <INCOME-TAX> 262,700 <INCOME-CONTINUING> 452,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 452,000 <EPS-PRIMARY> 0.00 <EPS-DILUTED> 0.00 <FN> <F1>WE HAVE NOT STATED SECURITIES SEPARATELY IN THE FINANCIAL STATEMENTS BECAUSE THEY ARE NOT MATERIAL. WE HAVE INCLUDED THEM IN THE "CASH" TAG. <F2>NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING REVENUES. WE THEREFORE HAVE NOT STATED THESE SALES SEPARATELY IN THE FINANCIAL STATEMENTS, PER REGULATION S-X, RULE 5-03(B). WE HAVE INCLUDED THESE SALES IN THE "TOTAL REVENUES" TAG. <F3>WE HAVE INCLUDED COST OF TANGIBLE GOODS SOLD IN COST OF SERVICE AND PRODUCTS IN OUR FINANCIAL STATEMENTS AND THE "TOTAL COST" TAG, PER REGULATION S-X, RULE 5-03(B). </FN>