<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 1-6875


                        BELL ATLANTIC - MARYLAND, INC.


 A Maryland Corporation            I.R.S. Employer Identification No. 52-0270070


               One East Pratt Street, Baltimore, Maryland 21202


                        Telephone Number (410) 539-9900

                            _________________________



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 - Maryland, Inc.

                        PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


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



<TABLE>
<CAPTION>
                                                           Three Months Ended   Nine Months Ended
                                                              September 30,       September 30,
                                                         -----------------------------------------
                                                             1999       1998      1999      1998
--------------------------------------------------------------------------------------------------

<S>                                                        <C>        <C>       <C>       <C>
OPERATING REVENUES (including $11.8,
 $19.0, $43.5 and $47.2 from affiliates)                     $573.2     $550.6  $1,686.3  $1,602.3
                                                         -----------------------------------------
OPERATING EXPENSES
Employee costs, including benefits and taxes                   83.3       78.5     252.5     247.9
Depreciation and amortization                                 114.7      111.8     338.3     327.5
Other (including $110.0, $134.1,
 $346.8 and $388.0 to affiliates)                             191.4      203.0     564.9     599.1
                                                         -----------------------------------------
                                                              389.4      393.3   1,155.7   1,174.5
                                                         -----------------------------------------

OPERATING INCOME                                              183.8      157.3     530.6     427.8

OTHER INCOME AND (EXPENSE), NET
 (including $0, $0, $.1 and $0 from affiliate)                  (.2)        .4        .6       3.3

INTEREST EXPENSE (including $1.8,
 $2.1, $5.3 and $5.8 to affiliate)                             17.3       17.4      53.1      51.8
                                                         -----------------------------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                      166.3      140.3     478.1     379.3

PROVISION FOR INCOME TAXES                                     64.8       53.2     182.1     142.5
                                                         -----------------------------------------

NET INCOME                                                   $101.5     $ 87.1  $  296.0  $  236.8
                                                         =========================================
</TABLE>



                  See Notes to Condensed Financial Statements.

                                       1
<PAGE>

                        Bell Atlantic - Maryland, Inc.

                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Millions)


                                     ASSETS
                                     ------


<TABLE>
<CAPTION>

                                                September 30,  December 31,
                                                    1999           1998
---------------------------------------------------------------------------
<S>                                             <C>            <C>
CURRENT ASSETS
Short-term investments                               $    ---      $   32.5
Accounts receivable:
 Trade and other, net of allowances for
    uncollectibles of $39.1 and $29.3                   418.5         422.3
 Affiliates                                              35.8          45.7
Material and supplies                                     8.6          10.0
Prepaid expenses                                         74.8          52.9
Deferred income taxes                                    12.4           ---
Other                                                     1.6           ---
                                              -----------------------------
                                                        551.7         563.4
                                              -----------------------------

PLANT, PROPERTY AND EQUIPMENT                         6,579.6       6,292.5
Less accumulated depreciation                         3,849.3       3,614.0
                                              -----------------------------
                                                      2,730.3       2,678.5
                                              -----------------------------

OTHER ASSETS                                             62.5          25.2
                                              -----------------------------

TOTAL ASSETS                                         $3,344.5      $3,267.1
                                              =============================

</TABLE>



                  See Notes to Condensed Financial Statements.

                                       2
<PAGE>

                        Bell Atlantic - Maryland, Inc.

                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Millions)


                    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                                                              $  236.3                $  178.4
  Other                                                                                       1.5                   101.4
Accounts payable and accrued liabilities:
  Affiliates                                                                                169.7                   203.5
  Other                                                                                     351.0                   295.9
Other liabilities                                                                            68.3                    68.1
                                                                              -------------------------------------------
                                                                                            826.8                   847.3
                                                                              -------------------------------------------

LONG-TERM DEBT                                                                              857.9                   858.4
                                                                              -------------------------------------------

EMPLOYEE BENEFIT OBLIGATIONS                                                                328.2                   379.8
                                                                              -------------------------------------------

DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes                                                                       181.1                   121.0
Unamortized investment tax credits                                                           10.9                    12.1
Other                                                                                        89.0                    85.1
                                                                              -------------------------------------------
                                                                                            281.0                   218.2
                                                                              -------------------------------------------

SHAREOWNER'S INVESTMENT
Common stock - one share, without par value, owned by parent                                735.4                   735.4
Capital surplus                                                                              31.7                    31.7
Reinvested earnings                                                                         283.9                   196.7
Accumulated other comprehensive loss                                                          (.4)                    (.4)
                                                                              -------------------------------------------
                                                                                          1,050.6                   963.4
                                                                              -------------------------------------------

TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT                                            $3,344.5                $3,267.1
                                                                              ===========================================
</TABLE>



                  See Notes to Condensed Financial Statements.

                                       3

<PAGE>

                        Bell Atlantic - Maryland, Inc.

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


<TABLE>
<CAPTION>
                                                                                       Nine Months Ended
                                                                                         September 30,
                                                                              -----------------------------------
                                                                                  1999                   1998
-----------------------------------------------------------------------------------------------------------------

<S>                                                                            <C>                   <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                                        $ 590.3               $ 484.9
                                                                              -----------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments                                                32.5                  22.8
Additions to plant, property and equipment                                        (382.5)               (423.4)
Other, net                                                                           3.5                  12.0
                                                                              -----------------------------------
Net cash used in investing activities                                             (346.5)               (388.6)
                                                                              -----------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Principal repayments of borrowings and capital lease obligations                  (100.9)                 (5.1)
Net change in note payable to affiliate                                             57.9                  41.3
Dividends paid                                                                    (209.0)               (151.6)
Net change in outstanding checks drawn
   on controlled disbursement accounts                                               8.2                  19.1
                                                                              -----------------------------------
Net cash used in financing activities                                             (243.8)                (96.3)
                                                                              -----------------------------------

NET CHANGE IN CASH                                                                   ---                   ---

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



                  See Notes to Condensed Financial Statements.

                                       4
<PAGE>

                        Bell Atlantic - Maryland, Inc.

                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (Unaudited)

1. Basis of Presentation

   Bell Atlantic - Maryland, 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 $77.6
million 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 - Maryland, Inc.


4.    Shareowner's Investment


<TABLE>
<CAPTION>
                                                                                  Accumulated
                                                                                     Other
                                                   Common  Capital  Reinvested   Comprehensive
(Dollars in Millions)                              Stock   Surplus   Earnings         Loss
----------------------------------------------------------------------------------------------
<S>                                               <C>     <C>      <C>          <C>
Balance at December 31, 1998                       $735.4    $31.7     $ 196.7         $(.4)
Net income                                                               296.0
Dividends paid to Bell Atlantic                                         (209.0)
Other                                                                       .2
                                                 ---------------------------------------------
Balance at September 30, 1999                      $735.4    $31.7     $ 283.9         $(.4)
                                                 =============================================
</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 - Maryland, 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 $296.0 million for the nine months ended September
30, 1999, compared to net income of $236.8 million 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 Millions)

Nine Months Ended September 30                                                1999        1998
-----------------------------------------------------------------------------------------------
<S>                                                                          <C>         <C>
Employee Costs
 Merger transition costs                                                     $ 1.0       $  .3

Other Operating Expenses
 Merger transition costs                                                       ---         2.1
 Allocated merger transition costs                                             4.7         3.7
                                                           -----------------------------------
                                                                             $ 5.7       $ 6.1
                                                           ===================================
</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 $5.7
million in the first nine months of 1999 and $6.1 million 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                                                              2,428              2,337                   3.9%
 Business                                                               1,432              1,321                   8.4
 Public                                                                    41                 40                   2.5
                                                            ------------------------------------
                                                                        3,901              3,698                   5.5
                                                            ====================================
Nine Months Ended September 30
------------------------------
Access Minutes of Use (in millions)                                    12,408             11,671                   6.3
                                                            ====================================
</TABLE>

                                       7
<PAGE>

                        Bell Atlantic - Maryland, Inc.

OPERATING REVENUES
------------------
(Dollars in Millions)

<TABLE>
<CAPTION>
Nine Months Ended September 30                                       1999                  1998
-------------------------------------------------------------------------------------------------
<S>                                                            <C>                  <C>
Local services                                                     $  982.4              $  940.6
Network access services                                               461.1                 419.2
Long distance services                                                 65.0                  69.4
Ancillary services                                                    177.8                 173.1
                                                           --------------------------------------
Total                                                              $1,686.3              $1,602.3
                                                           ======================================
</TABLE>


LOCAL SERVICES REVENUES

   1999 - 1998                                        Increase
--------------------------------------------------------------------------------
   Nine Months                                  $41.8          4.4%
--------------------------------------------------------------------------------

   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 5.5% 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.  Price reductions on local exchange services further
offset increases in local services revenues.


NETWORK ACCESS SERVICES REVENUES

   1999 - 1998                                       Increase
--------------------------------------------------------------------------------
   Nine Months                                  $41.9         10.0%
--------------------------------------------------------------------------------

   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 6.3%
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

                                       8
<PAGE>

                        Bell Atlantic - Maryland, Inc.

incurred for LNP in the form of monthly end-user charges for a five-year period
beginning in February 1999. LNP charges contributed approximately $6 million to
network access services revenues for the nine-month period ended September 30,
1999.

   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 $2 million 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 $7 million 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                                  $(4.4)        (6.3)%
--------------------------------------------------------------------------------

   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 and  price
reductions on certain toll services.  Presubscription, which was introduced in
May 1999, 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                                   $4.7          2.7%
--------------------------------------------------------------------------------

   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 due to a combination of higher
payments from competitive local exchange carriers for interconnection of their
networks with our network and for the purchase of unbundled network elements and
higher pole rentals from nonaffiliates.  Greater demand for voice messaging
services, billing and collection services and CPE services also contributed to
the growth in ancillary services revenues.  Lower revenues from installation
services provided to federal government customers and a decline in facilities
rental revenues from affiliates partially offset these increases.

                                       9
<PAGE>

                        Bell Atlantic - Maryland, Inc.

OPERATING EXPENSES
------------------
(Dollars in Millions)

<TABLE>
<CAPTION>
Nine Months Ended September 30                                                1999                  1998
---------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>                   <C>
Employee costs, including benefits and taxes                                     $  252.5              $  247.9
Depreciation and amortization                                                       338.3                 327.5
Other operating expenses                                                            564.9                 599.1
                                                                     ------------------------------------------
Total                                                                            $1,155.7              $1,174.5
                                                                     ==========================================
</TABLE>


EMPLOYEE COSTS

   1999 - 1998                                        Increase
--------------------------------------------------------------------------------
   Nine Months                                   $4.6          1.9%
--------------------------------------------------------------------------------

   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 increased in the first nine months of 1999 primarily as a
result of higher work force levels.  Other items contributing to the increase in
employee costs, but to a lesser extent, were annual salary and wage increases
for management and associate employees and increased associate overtime pay due
to severe rainstorms in the third quarter of 1999.  These increases were
partially offset by lower pension and benefit costs.

   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                                  $10.8          3.3%
--------------------------------------------------------------------------------

   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.


                                      10
<PAGE>

                        Bell Atlantic - Maryland, Inc.

OTHER OPERATING EXPENSES

   1999 - 1998                      (Decrease)
--------------------------------------------------------------------------------
   Nine Months                $(34.2)        (5.7)%
--------------------------------------------------------------------------------

   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 decrease in other operating expenses in the first nine months of 1999 was
largely attributable to 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.

   The decreases in other operating expenses were partially offset by higher
costs for materials and by 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."


OTHER INCOME AND (EXPENSE), NET

   1999 - 1998                      (Decrease)
--------------------------------------------------------------------------------
   Nine Months                 $(2.7)        (81.8)%
--------------------------------------------------------------------------------

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


INTEREST EXPENSE

   1999 - 1998                       Increase
--------------------------------------------------------------------------------
   Nine Months                  $1.3           2.5%
--------------------------------------------------------------------------------

   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 increased in the first nine months of 1999 over the same
period in 1998 principally due to a reduction in capitalized interest costs
primarily resulting from lower levels of average telephone plant under
construction.  This increase in expense was partially offset by the effect of
lower interest rates on average short-term debt.


EFFECTIVE INCOME TAX RATES

   Nine Months Ended September 30
--------------------------------------------------------------------------------
   1999                           38.1%
--------------------------------------------------------------------------------
   1998                           37.6%
--------------------------------------------------------------------------------

   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 principally due to
lower state income tax credits recorded in 1999.

                                      11
<PAGE>

                        Bell Atlantic - Maryland, Inc.

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 $11.9 million of an unused line of credit
with an affiliate, Bell Atlantic Network Funding Corporation.  In addition, we
had $50.0 million remaining under a shelf registration statement filed with the
Securities and Exchange Commission for the issuance of unsecured debt
securities.  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 51.1% at September 30, 1999, compared to 55.8% at
September 30, 1998 and 54.2% at December 31, 1998.

   On November 1, 1999, we declared and paid a dividend in the amount of $77.6
million to Bell Atlantic.


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 $18 million 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 $7 million 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

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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 carriers to terminate calls on their
networks, including a large 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 Public Service Commission of Maryland has issued a decision
requiring us to continue to pay reciprocal compensation on Internet-bound
traffic.

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.

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 .  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 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

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                        Bell Atlantic - Maryland, Inc.

   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 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.

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                          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.

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                                  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 - MARYLAND, 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.

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