**Exhibit 11**

**BellSouth Corporation**

**Computation of Earnings Per Share**

**(Dollars in Millions)**

 

 

|                                                                                             | For the Nine

Months Ended

September 30, |
|--------------------------------------------------------------------------------------------------|-------------------------------------------|
|                                                                                             | 2005                                      | 2006 |
|                                                                                             |                                      |   |
| **EARNINGS PER SHARE – BASIC:**                                                             |                                      |   |
|                                                                                             |                                      |   |
| Income From Continuing Operations                                                                | $   2,295                                 | $ 2,730 |
|                                                                                             |                                      |   |
| Discontinued Operations, net of tax                                                              | 381                                       | — |
|                                                                                             |                                      |   |
| Net Income                                                                                       | $   2,676                                 | $ 2,730 |
|                                                                                             |                                      |   |
| Weighted Average Shares Outstanding                                                              | 1,831                                     | 1,806 |
|                                                                                             |                                      |   |
| Earnings Per Common Share From Continuing Operations                                             | $    1.25                                 | $ 1.51 |
|                                                                                             |                                      |   |
| Discontinued Operations                                                                          | 0.21                                      | — |
|                                                                                             |                                      |   |
| Earnings Per Share                                                                               | $  1.46                                   | $ 1.51 |
|                                                                                             |                                      |   |
|                                                                                             |                                      |   |
| **EARNINGS PER SHARE – DILUTED:**                                                           |                                      |   |
|                                                                                             |                                      |   |
| Income From Continuing Operations                                                                | $   2,295                                 | $ 2,730 |
|                                                                                             |                                      |   |
| Discontinued Operations, net of tax                                                              | 381                                       | — |
|                                                                                             |                                      |   |
| Net Income                                                                                       | $   2,676                                 | $ 2,730 |
|                                                                                             |                                      |   |
| Weighted Average Shares Outstanding                                                              | 1,831                                     | 1806 |
|                                                                                             |                                      |   |
| Incremental shares from assumed exercise of stock options and payment of restricted stock awards | 4                                         | 7 |
|                                                                                             |                                      |   |
| Diluted Shares Outstanding                                                                       | 1,835                                     | 1813 |
|                                                                                             |                                      |   |
| Earnings Per Common Share From Continuing Operations                                             | $   1.25                                  | $  1.51 |
|                                                                                             |                                      |   |
| Discontinued Operations                                                                          | 0.21                                      | — |
|                                                                                             |                                      |   |
| Earnings Per Share                                                                               | $  1.46                                   | $  1.51 |