<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              ---------------------

                                    FORM 10-Q
                              ---------------------


(Mark one)
   [X]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 1999

                                       OR

   [_]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        For the transition period from to


                          Commission File Number 1-7757


                         BELL ATLANTIC - DELAWARE, INC.


   A Delaware Corporation      I.R.S. Employer Identification No. 23-0523775


                 901 Tatnall Street, Wilmington, Delaware 19801


                         Telephone Number (302) 571-1571

                            -------------------------




THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF BELL ATLANTIC CORPORATION, MEETS
THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL
INSTRUCTION H(2).


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X   No
                                      -----   -----
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                         CONDENSED STATEMENTS OF INCOME
                                   (Unaudited)
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                 Three Months Ended                Nine Months Ended
                                                                   September 30,                     September 30,
                                                          -------------------------------------------------------------------
                                                               1999              1998             1999             1998
----------------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>              <C>              <C>              <C>
OPERATING REVENUES (including $1,301,
   $1,177, $3,952 and $4,705 to affiliates)                  $76,316           $71,218         $223,331         $208,909
                                                          -------------------------------------------------------------------
OPERATING EXPENSES
Employee costs, including benefits and taxes                  12,234            10,819           33,101           33,899
Depreciation and amortization                                 16,796            16,011           49,386           46,732
Other (including $14,319, $16,451,
   $45,133 and $46,480 to affiliates)                         23,069            22,815           70,610           69,136
                                                          -------------------------------------------------------------------
                                                              52,099            49,645          153,097          149,767
                                                          -------------------------------------------------------------------

OPERATING INCOME                                              24,217            21,573           70,234           59,142

OTHER INCOME, NET (including $0, $0,
   $7, and $0 from affiliate)                                     34               185              140              620

INTEREST EXPENSE (including $575,
   $777, $1,909 and $2,287 to affiliates)                      2,057             2,378            6,327            7,163
                                                          -------------------------------------------------------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                      22,194            19,380           64,047           52,599

PROVISION FOR INCOME TAXES                                     9,025             7,863           26,067           21,264
                                                          -------------------------------------------------------------------

NET INCOME                                                   $13,169           $11,517          $37,980          $31,335
                                                          ===================================================================
</TABLE>



                  See Notes to Condensed Financial Statements.

                                       1
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                            CONDENSED BALANCE SHEETS
                                   (Unaudited)
                             (Dollars in Thousands)


                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                                                        September 30,          December 31,
                                                                                            1999                  1998
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>                    <C>
CURRENT ASSETS
Short-term investments                                                                       $  ---                $ 4,313
Accounts receivable:
   Trade and other, net of allowances for
      uncollectibles of $5,122 and $5,197                                                    55,228                 51,626
   Affiliates                                                                                 4,487                  3,922
Material and supplies                                                                         1,384                  1,583
Prepaid expenses                                                                              7,430                  4,000
Deferred income taxes                                                                         2,582                  2,732
Other                                                                                           421                    556
                                                                                     -------------------------------------------
                                                                                             71,532                 68,732
                                                                                     -------------------------------------------

PLANT, PROPERTY AND EQUIPMENT                                                               916,080                869,702
Less accumulated depreciation                                                               497,752                457,681
                                                                                     -------------------------------------------
                                                                                            418,328                412,021
                                                                                     -------------------------------------------

OTHER ASSETS                                                                                  6,908                  3,650
                                                                                     -------------------------------------------

TOTAL ASSETS                                                                               $496,768               $484,403
                                                                                     ===========================================
</TABLE>


                  See Notes to Condensed Financial Statements.

                                       2
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                            CONDENSED BALANCE SHEETS
                                   (Unaudited)
                 (Dollars in Thousands, Except Per Share Amount)


                     LIABILITIES AND SHAREOWNER'S INVESTMENT
                     ---------------------------------------

<TABLE>
<CAPTION>

                                                                                          September 30,         December 31,
                                                                                             1999                 1998
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>                   <C>
CURRENT LIABILITIES Debt maturing within one year:
   Note payable to affiliate                                                                   $19,658               $43,083
   Other                                                                                            50                15,046
Accounts payable and accrued liabilities:
   Affiliates                                                                                   25,215                27,036
   Other                                                                                        41,115                34,272
Advance billings and customer deposits                                                           9,501                 9,027
                                                                                       -----------------------------------------
                                                                                                95,539               128,464
                                                                                       -----------------------------------------
LONG-TERM DEBT
Note payable to affiliate                                                                       20,000                20,000
Other                                                                                           86,326                71,345
                                                                                       -----------------------------------------
                                                                                               106,326                91,345
                                                                                       -----------------------------------------

EMPLOYEE BENEFIT OBLIGATIONS                                                                    38,454                42,683
                                                                                       -----------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes                                                                           36,099                27,837
Unamortized investment tax credits                                                               1,931                 2,120
Other                                                                                           14,848                14,034
                                                                                       -----------------------------------------
                                                                                                52,878                43,991
                                                                                       -----------------------------------------
SHAREOWNER'S INVESTMENT
Common stock, $25 par value per share                                                          118,442               118,442
   Authorized shares:  5,262,280
   Outstanding shares: 4,737,686
Reinvested earnings                                                                             85,307                59,656
Accumulated other comprehensive loss                                                              (178)                (178)
                                                                                       -----------------------------------------
                                                                                               203,571               177,920
                                                                                       -----------------------------------------

TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT                                                 $496,768              $484,403
                                                                                       =========================================
</TABLE>


                  See Notes to Condensed Financial Statements.

                                       3
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                             (Dollars in Thousands)


<TABLE>
<CAPTION>
                                                                                                   Nine Months Ended
                                                                                                     September 30,
                                                                                       ------------------------------------------
                                                                                                1999                  1998
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>                   <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                                                      $86,457               $76,626
                                                                                       -----------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments                                                             4,313                 3,349
Additions to plant, property and equipment                                                     (55,864)              (73,048)
Other, net                                                                                       1,564                   482
                                                                                       -----------------------------------------
Net cash used in investing activities                                                          (49,987)              (69,217)
                                                                                       -----------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal repayments of capital lease obligations                                                  (31)                  (47)
Net change in note payable to affiliate                                                        (23,425)                3,299
Dividends paid                                                                                 (12,400)               (9,200)
Net change in outstanding checks drawn
   on controlled disbursement accounts                                                            (614)               (1,461)
                                                                                       -----------------------------------------
Net cash used in financing activities                                                          (36,470)               (7,409)
                                                                                       -----------------------------------------

NET CHANGE IN CASH                                                                                 ---                   ---

CASH, BEGINNING OF PERIOD                                                                          ---                   ---
                                                                                       -----------------------------------------

CASH, END OF PERIOD                                                                             $  ---                $  ---
                                                                                       =========================================
</TABLE>


                  See Notes to Condensed Financial Statements.

                                       4
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.    Basis of Presentation

      Bell Atlantic - Delaware, Inc. is a wholly owned subsidiary of Bell
Atlantic Corporation (Bell Atlantic). The accompanying unaudited condensed
financial statements have been prepared based upon Securities and Exchange
Commission rules that permit reduced disclosure for interim periods. These
financial statements reflect all adjustments that are necessary for a fair
presentation of results of operations and financial position for the interim
periods shown including normal recurring accruals. The results for the interim
periods are not necessarily indicative of results for the full year. For a more
complete discussion of significant accounting policies and certain other
information, you should refer to the financial statements included in our Annual
Report on Form 10-K for the year ended December 31, 1998.

      We have reclassified certain amounts from the prior year's data to conform
to the 1999 presentation.

2.    Dividend

      On November 1, 1999, we declared and paid a dividend in the amount of
$6,200,000 to Bell Atlantic.

3.    New Accounting Standards

Costs of Computer Software

      Effective January 1, 1999, we adopted Statement of Position (SOP) No.
98-1, "Accounting for the Costs of Computer Software Developed or Obtained for
Internal Use." Under SOP No. 98-1, we capitalize the cost of internal-use
software which has a useful life in excess of one year. Subsequent additions,
modifications or upgrades to internal-use software are capitalized only to the
extent that they allow the software to perform a task it previously did not
perform. Software maintenance and training costs are expensed in the period in
which they are incurred. Also, we capitalize interest associated with the
development of internal-use software. The effect of adopting SOP No. 98-1 for
Bell Atlantic was an increase in net income of approximately $175 million for
the nine months ended September 30, 1999.

Costs of Start-Up Activities

      Effective January 1, 1999, we adopted SOP No. 98-5, "Reporting on the
Costs of Start-up Activities." Under this accounting standard, we expense costs
of start-up activities as incurred, including pre-operating, pre-opening and
other organizational costs. The adoption of SOP No. 98-5 did not have a material
effect on our results of operations or financial condition because we have not
historically capitalized start-up activities.

Derivatives and Hedging Activities

      In June 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement requires that all
derivatives be measured at fair value and recognized as either assets or
liabilities on our balance sheet. Changes in the fair values of derivative
instruments will be recognized in either earnings or comprehensive income,
depending on the designated use and effectiveness of the instruments. The FASB
amended this pronouncement in June 1999 to defer the effective date of SFAS No.
133 for one year.

      Under the amended pronouncement, we must adopt SFAS No. 133 no later than
January 1, 2001. The adoption of SFAS No. 133 will have no material effect on
our results of operations or financial condition because we currently do not
enter into the use of derivative instruments or participate in hedging
activities.

                                       5
<PAGE>

                         Bell Atlantic - Delaware, Inc.

4.    Shareowner's Investment
<TABLE>
<CAPTION>

                                                                                                                 Accumulated
                                                                                                                    Other
                                                                            Common            Reinvested        Comprehensive
(Dollars in Thousands)                                                     Stock              Earnings             Loss
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                  <C>                 <C>                 <C>
Balance at December 31, 1998                                                 $118,442           $59,656            $ (178)
Net income                                                                                       37,980
Dividends paid to Bell Atlantic                                                                (12,400)
Other                                                                                                71
                                                                       ----------------------------------------------------------
Balance at September 30, 1999                                                $118,442           $85,307            $ (178)
                                                                       ==========================================================
</TABLE>

      Net income and comprehensive income were the same for the nine months
ended September 30, 1999 and 1998.

5.    Litigation and Other Contingencies

      Various legal actions and regulatory proceedings are pending to which we
are a party. We have established reserves for specific liabilities in connection
with regulatory and legal matters that we currently deem to be probable and
estimable. We do not expect that the ultimate resolution of pending regulatory
and legal matters in future periods will have a material effect on our financial
condition, but it could have a material effect on our results of operations.

6.    Proposed Bell Atlantic - GTE Merger

      Bell Atlantic and GTE Corporation (GTE) have announced a proposed merger
of equals under a definitive merger agreement dated as of July 27, 1998. Under
the terms of the agreement, GTE shareholders will receive 1.22 shares of Bell
Atlantic common stock for each share of GTE common stock that they own. Bell
Atlantic shareholders will continue to own their existing shares after the
merger.

      It is expected that the merger will qualify as a pooling of interests,
which means that for accounting and financial reporting purposes the companies
will be treated as if they had always been combined. At annual meetings held in
May 1999, the shareholders of each company approved the merger. The completion
of the merger is subject to a number of conditions, including certain regulatory
approvals and receipt of opinions that the merger will be tax-free.

      Bell Atlantic and GTE are working diligently to complete the merger and
are targeting completion of the merger around the end of the first quarter of
2000. However, the companies must obtain the approval of a variety of state and
federal regulatory agencies and, given the inherent uncertainties of the
regulatory process, the closing of the merger may be delayed.

                                       6
<PAGE>

                         Bell Atlantic - Delaware, Inc.

Item 2.  Management's Discussion and Analysis of Results of Operations
         (Abbreviated pursuant to General Instruction H(2).)

      This discussion should be read in conjunction with the Financial
Statements and Notes to Financial Statements.


RESULTS OF OPERATIONS
---------------------

      We reported net income of $37,980,000 for the nine months ended September
30, 1999, compared to net income of $31,335,000 for the same period in 1998.

      Our results for 1999 and 1998 were affected by special items. The special
items in both periods include our allocated share of charges from Bell Atlantic
Network Services, Inc. (NSI).

      The following table shows how special items are reflected in our condensed
statements of income for each period:

<TABLE>
<CAPTION>
                                                                                            (Dollars in Thousands)
Nine Months Ended September 30                                                              1999             1998
-------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>            <C>
Employee Costs
   Merger transition costs                                                                  $147              $ 4

Other Operating Expenses
   Merger transition costs                                                                   605              886
                                                                             --------------------------------------
                                                                                            $752             $890
                                                                             ======================================
</TABLE>

Merger-related Costs

      In connection with the Bell Atlantic-NYNEX merger, which was completed in
August 1997, we recorded pre-tax transition and integration costs of $752,000 in
the first nine months of 1999 and $890,000 in the first nine months of 1998.

      Transition and integration costs consist of our proportionate share of
costs associated with integrating the operations of Bell Atlantic and NYNEX,
such as systems modifications costs and advertising and branding costs.
Transition and integration costs are expensed as incurred.


OPERATING REVENUE STATISTICS
----------------------------
<TABLE>
<CAPTION>
                                                                                       1999             1998            % Change
----------------------------------------------------------------------------------------------------------------------------------
At September 30
--------------
<S>                                                                                <C>             <C>               <C>
Access Lines in Service (in thousands)
   Residence                                                                                 370              357              3.6%
   Business                                                                                  218              213              2.3
   Public                                                                                      6                6              ---
                                                                                        -------------------------
                                                                                             594              576              3.1
                                                                                        =========================
Nine Months Ended September 30
Access Minutes of Use (in millions)                                                        1,903            1,724             10.4
                                                                                        =========================
</TABLE>


                                       7
<PAGE>

                         Bell Atlantic - Delaware, Inc.

OPERATING REVENUES
------------------
(Dollars in Thousands)

<TABLE>
<CAPTION>
Nine Months Ended September 30                                                         1999              1998
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>               <C>
Local services                                                                            $127,721          $119,073
Network access services                                                                     59,396            52,496
Long distance services                                                                      15,864            19,243
Ancillary services                                                                          20,350            18,097
                                                                              ---------------------------------------
Total                                                                                     $223,331          $208,909
                                                                              =======================================
</TABLE>

LOCAL SERVICES REVENUES

      1999 - 1998                            Increase
--------------------------------------------------------------------------------
      Nine Months                     $8,648           7.3%
--------------------------------------------------------------------------------

      Local services revenues are earned from the provision of local exchange,
local private line, public telephone (pay phone) and value-added services.
Value-added services are a family of services that expand the utilization of the
network. These services include products such as Caller ID, Call Waiting and
Return Call.

      Local services revenues increased in 1999 primarily due to higher usage of
our network facilities. Revenue growth was generated, in part, by an increase in
access lines in service of 3.1% from September 30, 1998. Access line growth
primarily reflects higher demand for Centrex services and an increase in
additional residential lines.

      Local services revenue growth in 1999 also reflects strong customer demand
and usage of our data transport and digital services. Revenues from our
value-added services were boosted in 1999 by marketing and promotional campaigns
offering new service packages.

      These increases in local services revenues were partially offset by a
decline in revenues from our pay phone services due to the increasing popularity
of wireless communications. In addition, the resale of access lines and the
provision of unbundled network elements to competitive local exchange carriers
reduced revenues in 1999.


NETWORK ACCESS SERVICES REVENUES

      1999 - 1998                            Increase
--------------------------------------------------------------------------------
      Nine Months                     $6,900          13.1%
--------------------------------------------------------------------------------

      Network access services revenues are earned from end-user subscribers and
long distance and other competing carriers who use our local exchange facilities
to provide services to their customers. Switched access revenues are derived
from fixed and usage-based charges paid by carriers for access to our local
network. Special access revenues originate from carriers and end-users that buy
dedicated local exchange capacity to support their private networks. End-user
access revenues are earned from our customers and from resellers who purchase
dial-tone services.

      Network access services revenue growth in 1999 was mainly attributable to
higher customer demand, as reflected by growth in access minutes of use of 10.4%
from the same period in 1998. Volume growth also reflects a continuing expansion
of the business market, particularly for high-capacity services. In 1999, demand
for special access services increased, reflecting a greater utilization of our
network. Higher network usage by alternative providers of intraLATA toll
services and higher end-user revenues attributable to an increase in access
lines in service further contributed to revenue growth this year.

      In addition, revenues for 1999 include amounts received from customers for
the recovery of local number portability (LNP) costs. LNP allows customers to
change local exchange carriers while maintaining their existing telephone
numbers. In December 1998, the Federal Communications Commission (FCC) issued an
order permitting us to recover costs incurred for LNP in the form of monthly
end-user charges for a five-year period beginning in February 1999. LNP charges
contributed approximately $700,000 to network access services revenues for the
nine-month period ended September 30, 1999.

                                       8
<PAGE>

                         Bell Atlantic - Delaware, Inc.

      Volume-related growth was partially offset by net price reductions
mandated by a federal price cap plan. The FCC regulates the rates that we charge
long distance carriers and end-user subscribers for interstate access services.
We are required to file new access rates with the FCC each year. In July 1999,
we implemented interstate price decreases of approximately $500,000 on an annual
basis in connection with the FCC's Price Cap Plan. These rates will be in effect
through June 2000. Interstate price decreases were $600,000 on an annual basis
for the period July 1998 through June 1999. The rates also include amounts
necessary to recover our contribution to the FCC's universal service fund and
are subject to change every quarter due to potential increases or decreases in
our contribution to the universal service fund. Our contribution to the
universal service fund is included in Other Operating Expenses. See "Other
Matters - FCC Regulation and Interstate Rates - Universal Service" for
additional information on universal service.


LONG DISTANCE SERVICES REVENUES

      1999 - 1998                                      (Decrease)
--------------------------------------------------------------------------------
      Nine Months                               $(3,379)        (17.6)%
--------------------------------------------------------------------------------

      Long distance services revenues are earned primarily from calls made to
points outside a customer's local calling area, but within our service area
(intraLATA toll). Other long distance services that we provide include 800
services and Wide Area Telephone Service (WATS).

      The decline in long distance services revenues was principally caused by
the competitive effects of presubscription for intraLATA toll services.
Presubscription permits customers to use an alternative provider of their choice
for intraLATA toll calls without dialing a special access code when placing a
call. In response to presubscription, we have implemented customer win-back and
retention initiatives that include toll calling discount packages and product
bundling offers. These revenue reductions were partially offset by additional
revenues generated from higher calling volumes.


ANCILLARY SERVICES REVENUES

      1999 - 1998                                       Increase
--------------------------------------------------------------------------------
      Nine Months                                $2,253          12.4%
--------------------------------------------------------------------------------

      Our ancillary services include such services as billing and collections
for long distance carriers and affiliates, facilities rentals to affiliates and
nonaffiliates, collocation for competitive local exchange carriers, usage of
separately priced (unbundled) components of our network by competitive local
exchange carriers, voice messaging, customer premises equipment (CPE) and wiring
and maintenance services, and sales of materials and supplies to affiliates.
Ancillary services revenues also include fees paid by customers for
nonpublication of telephone numbers and multiple white page listings and fees
paid by an affiliate for usage of our directory listings.

      Ancillary services revenues increased in 1999 as a result of higher
payments from competitive local exchange carriers for the purchase of unbundled
network elements and for interconnection of their networks with our network.
Increased demand for billing and collection services and voice messaging
services, as well as higher facilities rental revenue from affiliates, also
contributed to the growth in ancillary services revenues in 1999.

                                       9
<PAGE>

                         Bell Atlantic - Delaware, Inc.

OPERATING EXPENSES
------------------
(Dollars in Thousands)

<TABLE>
<CAPTION>
Nine Months Ended September 30                                         1999              1998
----------------------------------------------------------------------------------------------
<S>                                                                  <C>               <C>
Employee costs, including benefits and taxes                        $ 33,101          $ 33,899
Depreciation and amortization                                         49,386            46,732
Other operating expenses                                              70,610            69,136
                                                             ---------------------------------
Total                                                               $153,097          $149,767
                                                             =================================
</TABLE>

EMPLOYEE COSTS

      1999 - 1998                             (Decrease)
--------------------------------------------------------------------------------
      Nine Months                        $(798)         (2.4)%
--------------------------------------------------------------------------------

      Employee costs consist of salaries, wages and other employee compensation,
employee benefits and payroll taxes paid directly by us. Similar costs incurred
by employees of NSI, who provide centralized services on a contract basis, are
allocated to us and are included in Other Operating Expenses.

      Employee costs decreased in the first nine months of 1999 primarily as a
result of lower pension and benefit costs, a reduction in associated overtime
pay and the effect of lower work force levels. Annual salary and wage increases
for management and associate employees partially offset these cost reductions.

      The decline in pension and benefit costs was due to a number of factors,
principally, lower pension costs as a result of favorable pension plan
investment returns and changes in plan provisions and actuarial assumptions.
These factors were partially offset by increased health care costs caused by
inflation and benefit plan improvements provided for under new contracts with
associate employees.


DEPRECIATION AND AMORTIZATION

      1999 - 1998                              Increase
--------------------------------------------------------------------------------
      Nine Months                       $2,654           5.7%
--------------------------------------------------------------------------------

      Depreciation and amortization expense increased in the first nine months
of 1999 over the same period in 1998 principally as a result of growth in
depreciable telephone plant and changes in the mix of plant assets. The adoption
of Statement of Position (SOP) No. 98-1, "Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use" also contributed to the
increase in depreciation and amortization expense in the first nine months of
1999, but to a lesser extent. Under this new accounting standard, computer
software developed or obtained for internal use is capitalized and amortized.
Previously, we expensed most of these software purchases as incurred. For
additional information on SOP No. 98-1, see Note 3 to the condensed financial
statements. These expense increases were partially offset by the effect of lower
rates of depreciation.


OTHER OPERATING EXPENSES

      1999 - 1998                               Increase
--------------------------------------------------------------------------------
      Nine Months                       $1,474           2.1%
--------------------------------------------------------------------------------

      Other operating expenses consist of contract services including
centralized services expenses allocated from NSI, rent, network software costs,
operating taxes other than income, the provision for uncollectible accounts
receivable, and other costs.

      The increase in other operating expenses in the first nine months of 1999
was largely attributable to higher interconnection payments to competitive local
exchange and other carriers to terminate calls on their networks (reciprocal
compensation). For additional information on reciprocal compensation refer to
"Other Matters - Telecommunications Act of 1996 - Reciprocal Compensation."

                                      10
<PAGE>

                         Bell Atlantic - Delaware, Inc.

      The increase in other operating expenses was partially offset by the
effect of adopting SOP No. 98-1 and a reduction in centralized services expenses
allocated from NSI, primarily as a result of lower employee costs incurred by
NSI.


OTHER INCOME, NET

      1999 - 1998                             (Decrease)
--------------------------------------------------------------------------------
      Nine Months                        $(480)        (77.4)%
--------------------------------------------------------------------------------

      The change in other income, net, was mainly attributable to additional
interest income in 1998 in connection with the settlement of tax-related
matters.


INTEREST EXPENSE

      1999 - 1998                             (Decrease)
--------------------------------------------------------------------------------
      Nine Months                        $(836)        (11.7)%
--------------------------------------------------------------------------------

      Interest expense includes costs associated with borrowings and capital
leases, net of interest capitalized as a cost of acquiring or constructing plant
assets.

      Interest expense decreased in the first nine months of 1999 over the same
period in 1998 principally due to the effect of refinancing long-term debt with
short-term debt at a more favorable interest rate in November 1998. This
decrease was partially offset by a reduction in capitalized interest costs
primarily resulting from lower levels of average telephone plant under
construction.


EFFECTIVE INCOME TAX RATES

      Nine Months Ended September 30
--------------------------------------------------------------------------------
      1999                                      40.7%
--------------------------------------------------------------------------------
      1998                                      40.4%
--------------------------------------------------------------------------------

      The effective income tax rate is the provision for income taxes as a
percentage of income before the provision for income taxes. Our effective income
tax rate was higher in the first nine months of 1999 as a result of income tax
credits recorded in 1998.


FINANCIAL CONDITION
-------------------

      We use the net cash generated from operations and from external financing
to fund capital expenditures for network expansion and modernization, and pay
dividends. While current liabilities exceeded current assets at both September
30, 1999 and 1998 and December 31, 1998, our sources of funds, primarily from
operations and, to the extent necessary, from readily available financing
arrangements with an affiliate, are sufficient to meet ongoing operating
requirements. Management expects that presently foreseeable capital requirements
will continue to be financed primarily through internally generated funds.
Additional long-term debt may be needed to fund development activities or to
maintain our capital structure to ensure financial flexibility.

      As of September 30, 1999, we had $20,342,000 of an unused line of credit
with an affiliate, Bell Atlantic Network Funding Corporation. Our debt
securities continue to be accorded high ratings by primary rating agencies.
Subsequent to the announcement of the Bell Atlantic - GTE merger, rating
agencies have maintained current credit ratings, but have placed our ratings
under review for potential downgrade.

      Our debt ratio was 38.2% at September 30, 1999, compared to 48.1% at
September 30, 1998 and 45.7% at December 31, 1998.

      On November 1, 1999, we declared and paid a dividend in the amount of
$6,200,000 to Bell Atlantic.

                                      11
<PAGE>

                         Bell Atlantic - Delaware, Inc.

OTHER MATTERS
-------------

FCC Regulation and Interstate Rates

      Price Caps

      In May 1999, the U.S. Court of Appeals reversed the FCC's establishment of
a 6.5% productivity factor in calculating the annual price cap index applied to
our interstate access rates. The court directed the FCC to reconsider and
explain the methods used in selecting the productivity factor. The court granted
the FCC a stay of its order, however, until April 1, 2000. As a result, our
annual price cap filing effective July 1, 1999 includes the effects of the FCC's
6.5% productivity factor (see Operating Revenues - Network Access Services).

      The FCC has adopted rules for special access services that provide for
added pricing flexibility and ultimately the removal of services from price
regulation when certain competitive thresholds are met. The order also allows
certain services, including those included in the interexchange basket of
services, to be removed from price regulation immediately. In response, we have
filed to remove services in the interexchange basket from regulation, effective
October 22, 1999. This will remove services with approximately $13,900,000 in
annual revenues from price regulation and from the operation of the productivity
offset which otherwise would require annual price reductions.

      Universal Service

      On July 30, 1999, the U.S. Court of Appeals reversed certain aspects of
the FCC's universal service order. The universal service fund includes a
multi-billion dollar interstate fund to link schools and libraries to the
Internet and to subsidize low income consumers and rural healthcare providers.
Previously, under the FCC's rules, all providers of interstate
telecommunications services had to contribute to the schools and libraries fund
based on their total interstate and intrastate retail revenues. The court
reversed the decision to include intrastate revenues as part of the basis for
assessing contributions to that fund. As a result of this decision, our
contributions to the universal service fund will be reduced by approximately
$1,200,000 annually beginning on November 1, 1999, and our interstate access
rates will be reduced accordingly.

Telecommunications Act of 1996

      Unbundling of Network Elements

      The FCC recently announced its decision setting forth new unbundling
requirements. The FCC had previously identified seven elements that had to be
provided to competitors on an unbundled basis. With respect to those seven
elements, the FCC concluded that incumbent local exchange carriers, such as us,
do not have to provide unbundled switching (or combinations of elements that
include switching, such as the so-called unbundled element "platform") under
certain circumstances to business customers with four or more lines in certain
offices in the top 50 Metropolitan Statistical Areas (MSAs). It also held that
incumbents do not have to provide unbundled access to their directory assistance
or operator services. The remaining elements on the FCC's original list still
must be provided.

      With respect to new elements, the FCC concluded that new equipment to
provide advanced services such as ADSL does not have to be unbundled. On the
other hand, the FCC concluded that incumbents must provide dark fiber as an
unbundled element, and that sub-loop unbundling should be provided. Finally, the
FCC ruled that combinations of loops and transport, known as enhanced extended
loops or "EELs," must be made available under certain circumstances, but left to
a further rulemaking certain issues relating to the use of EELs to substitute
for special access services.

      Reciprocal Compensation

      We have been required by our state regulators to pay "reciprocal
compensation" to competitive local exchange and other carriers to terminate
calls on their networks, including an increasing volume of one-way traffic from
our customers to Internet service providers that are their customers. In
February 1999, the FCC confirmed that such traffic is largely interstate but
concluded that it would not interfere with state regulatory decisions requiring
payment of reciprocal compensation for such traffic and that carriers are bound
by their existing interconnection agreements. The FCC tentatively concluded that
future compensation arrangements for calls to Internet service providers should
be negotiated by carriers and arbitrated, if necessary, before the state
commissions under the terms of the Telecommunications Act of 1996 (1996 Act).
The FCC has initiated a proceeding to consider, alternatively, the adoption of
federal rules to govern future inter-carrier compensation arrangements for this
traffic. We have asked the U.S. Court of Appeals to review the FCC's decision
that state commissions may require payment of reciprocal compensation for this
traffic. The Delaware Public Service Commission (DPSC) has issued a decision
requiring us to continue to pay reciprocal compensation on Internet-bound
traffic. The DPSC's decision is currently under appeal in the Federal District
Court in Delaware.

                                      12
<PAGE>

                         Bell Atlantic - Delaware, Inc.

Recent Accounting Pronouncement - Derivatives and Hedging Activities

     In June 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for
Derivative Instruments and Hedging Activities." This statement requires that all
derivatives be measured at fair value and recognized as either assets or
liabilities on our balance sheet. Changes in the fair values of the derivative
instruments will be recognized in either earnings or comprehensive income,
depending on the designated use and effectiveness of the instruments. The FASB
amended this pronouncement in June 1999 to defer the effective date of SFAS No.
133 for one year.

     Under the amended pronouncement, we must adopt SFAS No. 133 no later than
January 1, 2001. The adoption of SFAS No. 133 will have no material effect on
our results of operations or financial condition because we currently do not
enter into the use of derivative instruments or participate in hedging
activities.

Year "2000" Update

     Bell Atlantic is now in the final stages of its program to evaluate and
address the impact of the Year 2000 date transition on its subsidiaries'
operations, including our operations. This program has included steps to:

     .  inventory and assess for Year 2000 compliance our equipment, software
        and systems;

     .  determine whether to remediate, replace or retire noncompliant items,
        and establish a plan to accomplish these steps;

     .  remediate, replace or retire the items;

     .  test the items, where required; and

     .  provide management with reporting and issues management to support a
        seamless transition to the Year 2000.

State of Readiness

     For Bell Atlantic's operating telephone subsidiaries, centralized services
     entities and general corporate operations, the program has focused on the
     following project groups: Network Elements, Applications and Support
     Systems, and Information Technology Infrastructure. Bell Atlantic's goal
     for these operations was to have its network and other mission critical
     systems Year 2000 compliant (including testing) by June 30, 1999 and it
     substantially met this goal. What follows is a more detailed breakdown of
     Bell Atlantic's efforts to date.

 .    Network Elements

     Approximately 350 different types of network elements (such as central
     office switches) appear in over one hundred thousand instances. When
     combined in various ways and using network application systems, these
     elements are the building blocks of customer services and networked
     information transmission of all kinds. Bell Atlantic originally assessed
     approximately 70% of these element types, representing over 90% of all
     deployed network elements, as Year 2000 compliant. As of November 1, 1999,
     Bell Atlantic has completed the required repair/replacement for virtually
     all network elements requiring remediation.

 .    Application and Support Systems

     Bell Atlantic has approximately 1,200 application and systems that support:
     (i) the administration and maintenance of its network and customer service
     functions (network information systems); (ii) customer care and billing
     functions; and (iii) human resources, finance and general corporate
     functions. Bell Atlantic originally assessed approximately 48% of these
     application and support systems as either compliant or to be retired. As of
     November 1, 1999, Bell Atlantic has successfully completed the required
     repair/replacement of virtually all mission critical application and
     support systems.

 .    Information Technology Infrastructure

     Approximately 40 mainframe, 1,000 mid-range, and 90,000 personal computers,
     related network components, and software products comprise Bell Atlantic's
     information technology (IT) infrastructure. Of the approximately 1,350
     unique types of elements in the inventory for the IT infrastructure, Bell
     Atlantic originally assessed approximately 73% as compliant or to be
     retired. As previously reported, Bell Atlantic has successfully completed
     remediation/replacement of all mission critical elements earlier this year.

     Bell Atlantic's project to remediate/replace or retire mission critical
     systems supporting buildings and other facilities used by its operating
     telephone subsidiaries, such as HVAC, access control and alarm systems, is
     now complete and its efforts to

                                      13
<PAGE>

                         Bell Atlantic - Delaware, Inc.

     remediate/replace or retire any other Bell Atlantic mission critical system
     used by those subsidiaries is virtually complete. Remediation/replacement
     or retirement of non-mission critical systems, where applicable, and
     supplemental testing and verification/correction activities, for both
     mission critical and non-mission critical systems, are likely to continue
     throughout the balance of 1999.

Third Party Issues

 .    Vendors

     In general, Bell Atlantic's product vendors have made available either Year
     2000-compliant versions of their offerings or new compliant products as
     replacements of discontinued offerings. The compliance status of a given
     product is typically determined using multiple sources of information,
     including Bell Atlantic's own internal testing and analysis. However, in
     some instances certification is based on detailed test results or similar
     information provided by the product vendor and analysis by Bell Atlantic or
     contractors specializing in this type of review. Bell Atlantic is also
     continuing Year 2000-related discussions with utilities and similar
     services providers. Although Bell Atlantic has received assurances and
     other information suggesting that substantially all of its primary services
     providers have completed or are well along in their respective Year 2000
     projects, Bell Atlantic does not usually have sufficient access to or
     control over the providers' systems and equipment to undertake verification
     efforts as to such systems and equipment, and as a general matter, it would
     be impractical to do so. Bell Atlantic has also participated in
     interoperability testing of various mission critical network elements,
     purchased from a number of vendors, through the Telco Year 2000 Forum, an
     industry group comprised of leading local telecommunications services
     companies. Bell Atlantic intends to monitor critical service provider
     activities, as appropriate, through the remainder of 1999.

 .    Customers

     Bell Atlantic's customers remain keenly interested in the progress of its
     Year 2000 efforts, and it anticipates increased demand for information,
     including detailed testing data and company-specific responses. Bell
     Atlantic is providing limited warranties of Year 2000 compliance for
     certain new telecommunications services and other offerings, but it does
     not expect any resulting warranty costs to be material.

 .    Interconnecting Carriers

     Bell Atlantic's network operations interconnect with domestic and
     international networks of other carriers. If one of these interconnecting
     carrier networks should fail or suffer adverse impact from a Year 2000
     problem, Bell Atlantic's customers could experience impairment of service.
     Bell Atlantic has participated in various internetworking testing efforts,
     as a member of the Association for Telecommunications Industry Solutions
     (ATIS), the Cellular Telecommunications Industry Association (CTIA) and the
     International Telecommunications Union (ITU). Bell Atlantic intends to
     monitor the activities of the primary interconnecting carriers through the
     remainder of 1999.

Costs

     From the inception of Bell Atlantic's Year 2000 project through September
30, 1999, and based on the cost tracking methods it has historically applied to
this project, Bell Atlantic has incurred total pre-tax expenses of approximately
$211 million, and it has made capital expenditures of approximately $153
million. For 1999, Bell Atlantic expects total pre-tax expenses for its Year
2000 project not to exceed $125 million (approximately $89 million has been
incurred through September 30, 1999) and total capital expenditures not to
exceed $100 million (approximately $73 million has been made through September
30, 1999). Bell Atlantic anticipates that the balance of the costs incurred for
1999 will be primarily attributable to additional testing and
verification/correction, rollover transition management, contingency planning
and repair/replacement of non-mission critical systems. These cost estimates
should not be used as the sole gauge of progress on its Year 2000 project or as
an indication of its Year 2000 readiness.

Risks

     The failure to correct a material Year 2000 problem could cause an
interruption or failure of certain of Bell Atlantic's normal business functions
or operations, which could have a material adverse effect on its results of
operations, liquidity or financial condition; however, it considers such a
development remote. Due to the uncertainty inherent in other Year 2000 issues
that are ultimately beyond Bell Atlantic's control, including, for example, the
final Year 2000 readiness of its suppliers, customers, interconnecting carriers,
and joint venture and investment interests, it is unable to determine at this
time the likelihood of a material impact on its results of operations, liquidity
or financial condition due to such Year 2000 issues. However, Bell Atlantic is
taking appropriate prudent measures to mitigate that risk. Bell Atlantic
anticipates that, in the event

                                      14
<PAGE>

                         Bell Atlantic - Delaware, Inc.

of material interruption or failure of its service resulting from an actual or
perceived Year 2000 problem within or beyond its control, it could be subject to
third party claims.

Contingency Plans

      As a public telecommunications carrier, Bell Atlantic has had considerable
experience successfully dealing with natural disasters and other events
requiring contingency planning and execution. Bell Atlantic's Year 2000
contingency plans are built upon its existing Emergency Preparedness and
Disaster Recovery plans.

      Bell Atlantic will continue to fine-tune and test its corporate Year 2000
contingency plans to help ensure that core business functions and key support
processes will continue to function without material disruption, in the event of
external (e.g. power, public transportation, water), internal or supply chain
failures (i.e. critical dependencies on another entity for information, data or
services). Bell Atlantic's individual business unit contingency plans for Year
2000 are being integrated and coordinated under an enterprise wide command and
control structure.

                                      15
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                           PART II - OTHER INFORMATION

Item 6.       Exhibits and Reports on Form 8-K


              (a)   Exhibits:

                    Exhibit Number

                    27 Financial Data Schedule.


              (b)   There were no Current Reports on Form 8-K filed during the
                    quarter ended September 30, 1999.

                                      16
<PAGE>

                         Bell Atlantic - Delaware, Inc.

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                        BELL ATLANTIC - DELAWARE, INC.




Date:  November 10, 1999                By /s/ Edwin F. Hall
                                           -----------------------
                                               Edwin F. Hall
                                               Controller



     UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF NOVEMBER 5, 1999.


                                      17