WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  


FINANCIAL DATA SCHEDULE

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED
IN THE BODY OF THE ACCOMPANYING FORM 20-F AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<CURRENCY> UK STERLING
       

                     
<PERIOD-TYPE>           12-MOS
<FISCAL-YEAR-END>                  DEC-31-1998
<PERIOD-END>                       DEC-31-1998
<EXCHANGE-RATE>                              1
<CASH>                                      44
<SECURITIES>                               962
<RECEIVABLES>                              197
<ALLOWANCES>                                28
<INVENTORY>                                  6
<CURRENT-ASSETS>                         1,607
<PP&E>                                   2,248
<DEPRECIATION>                           1,469
<TOTAL-ASSETS>                           2,705
<CURRENT-LIABILITIES>                    2,250
<BONDS>                                      0
<PREFERRED-MANDATORY>                        0
<PREFERRED>                                  0
<COMMON>                                   354
<OTHER-SE>                                  18
<TOTAL-LIABILITY-AND-EQUITY>             2,705
<SALES>                                      0
<TOTAL-REVENUES>                         3,032
<CGS>                                        0
<TOTAL-COSTS>                            2,482
<OTHER-EXPENSES>                             0
<LOSS-PROVISION>                             0
<INTEREST-EXPENSE>                          72
<INCOME-PRETAX>                            580
<INCOME-TAX>                               196
<INCOME-CONTINUING>                        384
<DISCONTINUED>                               0
<EXTRAORDINARY>                              0
<CHANGES>                                    0
<NET-INCOME>                               384
<EPS-PRIMARY> pence                       26.7
<EPS-DILUTED> pence                       26.6