<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MICHIGAN BELL TELEPHONE COMPANY'S DECEMBER 31, 1998 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <CASH> 13,200 <SECURITIES> 0<F1> <RECEIVABLES> 752,800 <ALLOWANCES> (78,800) <INVENTORY> 20,600 <CURRENT-ASSETS> 734,700 <PP&E> 8,695,600 <DEPRECIATION> 5,830,000 <TOTAL-ASSETS> 4,090,700 <CURRENT-LIABILITIES> 1,137,800 <BONDS> 496,100 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,721,800 <OTHER-SE> (169,300) <TOTAL-LIABILITY-AND-EQUITY> 4,090,700 <SALES> 0<F2> <TOTAL-REVENUES> 3,470,700 <CGS> 0<F3> <TOTAL-COSTS> 2,462,900 <OTHER-EXPENSES> (8,800) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 83,400 <INCOME-PRETAX> 933,200 <INCOME-TAX> 339,700 <INCOME-CONTINUING> 593,500 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 593,500 <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>