Registration Nos. 333-14865, 333-14865-01, 3-50049 and 33-50049-01 Filing under Rule 424(b)(3) PRICING SUPPLEMENT NO. 2 DATED DECEMBER 17, 1996 - ------------------------------------------------------- (To Prospectus dated December 9, 1996, as supplemented by Prospectus Supplement dated December 9, 1996) U S WEST CAPITAL FUNDING, INC. MEDIUM-TERM NOTES DUE FROM NINE MONTHS OR MORE FROM DATE OF ISSUE UNCONDITIONALLY GUARANTEED AS TO PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST BY U S WEST, INC. ____________________ Aggregate Principal Amount: $ 5,000,000 Settlement Date: January 2, 1997 Maturity: January 2, 2004 Coupon: 6.75% PURCHASE AS PRINCIPAL - ----------------------- This Pricing Supplement relates to $5,000,000 aggregate principal amount of Notes that are being purchased, as principal, by Smith Barney Inc. ("Smith Barney") for resale to investors at varying prices relating to prevailing market prices at the time of resale as determined by Smith Barney. The net proceeds payable by Smith Barney to U S WEST Capital Funding, Inc. ("Capital Funding") will be 98.869% of the aggregate principal amount of the Notes, or $4,943,450, before deduction of expenses payable by Capital Funding. In connection with the sale of the Notes, Smith Barney may be deemed to have received compensation in the form of underwriting discounts in the amount of 1.131% of the aggregate principal amount of the Notes, or $56,550.