<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 June 30, 1998

                                      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 1-7150


                      BELL ATLANTIC - WEST VIRGINIA, INC.


   A West Virginia Corporation                I.R.S. Employer Identification 
                                                      No. 55-0142020


                 1500 MacCorkle Avenue, S.E., Charleston, West
                                Virginia 25314


                        Telephone Number (304) 343-9911

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



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 - West Virginia, Inc.

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

             CONDENSED STATEMENTS OF INCOME AND REINVESTED EARNINGS
                                  (Unaudited)
                             (Dollars in Thousands)
<TABLE>
<CAPTION>
 
 
                                  Three months ended        Six months ended
                                       June 30,                 June 30,
                                  ---------------------  -----------------------
                                   1998         1997        1998         1997
                                  --------     --------    --------     --------
<S>                             <C>          <C>         <C>          <C>
OPERATING REVENUES (including
  $8,968, $9,457, $17,869 and 
  $18,379 from affiliates)....    $149,058     $144,751    $295,045     $287,727
                                  --------     --------    --------     --------
 
OPERATING EXPENSES
  Employee costs,
   including benefits and
   taxes......................      25,561       25,855      52,094       50,788
  Depreciation and
   amortization...............      31,647       31,564      62,319       62,752
  Taxes other than income.....       7,654        7,686      15,258       15,311
  Other (including
   $31,160, $30,436, $59,516
   and $60,153 to affiliates).      46,914       41,607      89,113       84,300
                                  --------     --------    --------     --------
                                   111,776      106,712     218,784      213,151
                                  --------     --------    --------     --------
 
OPERATING INCOME..............      37,282       38,039      76,261       74,576
 
OTHER INCOME, NET (including
 $347, $749, $1,014 and $1,319 
 from affiliate)..............       1,036        1,029       1,789        1,599
 
INTEREST EXPENSE..............       4,240        4,593       8,570        9,129
                                  --------     --------    --------     --------
 
Income Before Provision for
  Income Taxes and
  Extraordinary Item..........      34,078       34,475      69,480       67,046
 
PROVISION FOR INCOME TAXES....      13,797       13,396      28,039       26,223
                                  --------     --------    --------     --------
 
Income Before Extraordinary
 Item.........................      20,281       21,079      41,441       40,823
 
Extraordinary Item
  Early extinguishment of
  debt, net of tax............        (263)         ---        (263)         ---
                                  --------     --------    --------     --------
 
NET INCOME....................    $ 20,018     $ 21,079    $ 41,178     $ 40,823
                                  ========     ========    ========     ========
 
 
 
REINVESTED EARNINGS
  At beginning of period......    $  9,059     $  7,306    $ 13,299     $  4,641
  Add:  net income............      20,018       21,079      41,178       40,823
                                  --------     --------    --------     --------
                                    29,077       28,385      54,477       45,464
  Deduct:  dividends..........      23,000       14,700      48,400       29,700
           other changes......          (3)         346          (3)       2,425
                                  --------     --------    --------     --------
  At end of period............    $  6,080     $ 13,339    $  6,080     $ 13,339
                                  ========     ========    ========     ========
 
</TABLE>

                  See Notes to Condensed Financial Statements.

                                       1
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Thousands)
                                        

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
                                                  June 30,   December 31,
                                                    1998         1997
                                                 ----------  ------------
<S>                                              <C>         <C>
CURRENT ASSETS
Short-term investments.........................  $    5,884    $    8,378
Note receivable from affiliate.................         ---        59,646
Accounts receivable:
  Trade and other, net of allowances for
       uncollectibles of $7,259 and $5,177.....      92,930        94,460
  Affiliates...................................       5,681         6,019
Material and supplies..........................       8,650         7,262
Prepaid expenses...............................       3,202         3,697
Other..........................................          18           320
                                                 ----------    ----------
                                                    116,365       179,782
                                                 ----------    ----------
 
PLANT, PROPERTY AND EQUIPMENT..................   1,814,100     1,742,837
Less accumulated depreciation..................   1,085,778     1,032,176
                                                 ----------    ----------
                                                    728,322       710,661
                                                 ----------    ----------
 
OTHER ASSETS...................................      10,239        18,055
                                                 ----------    ----------
 
TOTAL ASSETS...................................  $  854,926    $  908,498
                                                 ==========    ==========
</TABLE>


                  See Notes to Condensed Financial Statements.

                                       2
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Thousands)
                                        

                    LIABILITIES AND SHAREOWNER'S INVESTMENT
                    ---------------------------------------
 
                                                    June 30,     December 31,
                                                      1998           1997
                                                    --------     ------------
 
CURRENT LIABILITIES
Debt maturing within one year:
     Notes payable to affiliate.................    $  9,344         $    ---
     Other......................................         160               48
Accounts payable and accrued liabilities:
     Affiliates.................................      52,193           56,572
     Other......................................      91,984           96,336
Other liabilities...............................      18,398           18,675
                                                    --------         --------
                                                     172,079          171,631
                                                    --------         --------
 
LONG-TERM DEBT..................................     224,503          264,126
                                                    --------         --------
 
EMPLOYEE BENEFIT OBLIGATIONS....................     129,727          135,991
                                                    --------         --------
 
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes...........................      18,914           17,933
Unamortized investment tax credits..............       6,136            6,733
Other...........................................      26,003           27,301
                                                    --------         --------
                                                      51,053           51,967
                                                    --------         --------
SHAREOWNER'S INVESTMENT
Common stock - one share, owned by parent, at
 stated value...................................     264,065          264,065
Capital surplus.................................       7,419            7,419
Reinvested earnings.............................       6,080           13,299
                                                    --------         --------
                                                     277,564          284,783
                                                    --------         --------
 
TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT...    $854,926         $908,498
                                                    ========         ========


                  See Notes to Condensed Financial Statements.

                                       3
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

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

                                        

                                                          Six months ended
                                                               June 30,
                                                       -----------------------
                                                           1998         1997
                                                       ----------    ---------

NET CASH PROVIDED BY OPERATING ACTIVITIES..........    $   97,618    $ 101,197
                                                       ----------    ---------
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments...............         2,494        3,168
Additions to plant, property and equipment.........       (80,005)     (46,278)
Net change in note receivable from affiliate.......        59,646      (20,839)
Other, net.........................................           515          (87)
                                                       ----------    ---------
Net cash used in investing activities..............       (17,350)     (64,036)
                                                       ----------    ---------
 
CASH FLOWS FROM FINANCING ACTIVITIES
Principal repayments of capital lease obligations..           (78)         (21)
Early extinguishment of debt.......................       (40,000)         ---
Net change in note payable to affiliate............         9,344          ---
Dividends paid.....................................       (48,400)     (29,700)
Net change in outstanding checks drawn
     on controlled disbursement accounts...........        (1,134)      (7,440)
                                                       ----------    ---------
Net cash used in financing activities..............       (80,268)     (37,161)
                                                       ----------    ---------

NET CHANGE IN CASH.................................           ---          ---


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


CASH, END OF PERIOD................................    $      ---    $     ---
                                                       ==========    =========


                  See Notes to Condensed Financial Statements.

                                       4
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (Unaudited)
                                        
1. Basis of Presentation

   Bell Atlantic - West Virginia, Inc. (the Company) 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 which 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, refer to the financial statements
included in the Company's 1997 Form 10-K.

   The Company has reclassified certain amounts from prior year's data to
conform with the 1998 presentation.

2. Dividend

   On August 3, 1998, the Company declared and paid a dividend in the amount of
$16,000,000 to Bell Atlantic.

3. Debt

   In the first half of 1998, the Company recorded an extraordinary charge
associated with the early extinguishment of $40,000,000 of 7.25% debentures due
in 2009.  This charge reduced net income by $263,000 (net of an income tax
benefit of $182,000).

4. Litigation and Other Contingencies

   Various legal actions and regulatory proceedings are pending to which the
Company is a party.  The Company has established reserves for liabilities in
connection with regulatory and legal matters which it currently deems to be
probable and estimable.  The Company does not expect that the ultimate
resolution of these matters in future periods will have a material effect on the
Company's financial position, but it could have a material effect on results of
operations.

5. Recent Accounting Pronouncement

Costs of Computer Software

   In March 1998, the American Institute of Certified Public Accountants issued
Statement of Position No. 98-1, "Accounting for the Costs of Computer Software
Developed or Obtained for Internal Use," (SOP 98-1). SOP 98-1 provides, among
other things, guidance for determining whether computer software is for internal
use and when the cost related to such software should be expensed as incurred or
capitalized and amortized.  SOP 98-1 is required to be adopted no later than
January 1, 1999.

   The Company currently capitalizes initial right-to-use fees for central
office switching equipment, including initial operating system and initial
application software costs.  For noncentral office equipment, only the initial
operating system software is capitalized.  Subsequent additions, modifications,
or upgrades of initial software programs, whether operating or application
packages, are expensed as incurred.  The Company is currently evaluating the
provisions of SOP 98-1 and has not yet quantified the effect at this time.  The
adoption of SOP 98-1 is expected to result in an increase in earnings in the
year of adoption due to the prospective capitalization of costs which were
previously expensed.


                                       5
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

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 for accounting and financial reporting purposes the companies will
be treated as if they had always been combined.  The completion of the merger is
subject to a number of conditions, including certain regulatory approvals,
receipt of opinions that the merger will be tax free, and the approval of the
shareholders of both Bell Atlantic and GTE.  The companies expect to close the
merger in the second half of 1999.


                                       6
<PAGE>
 
                      Bell Atlantic - West Virginia, 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
---------------------

   The Company reported net income of $41,178,000 for the six month period ended
June 30, 1998, compared to net income of $40,823,000 for the same period in
1997.

   In the first six months of 1998, the Company recorded an extraordinary charge
associated with the early extinguishment of long-term debt.  This charge reduced
net income by $263,000 (net of an income tax benefit of $182,000) (see Note 3 to
the condensed financial statements).

   Other items affecting the comparison of the Company's results of operations
for the six month periods ended June 30, 1998 and 1997 are discussed in the
following sections.  This Management's Discussion and Analysis should also be
read in conjunction with the Company's 1997 Annual Report on Form 10-K.


OPERATING REVENUE STATISTICS
----------------------------
 
                                                 1998       1997     % Change
--------------------------------------------------------------------------------
At June 30
----------
  Access Lines in Service (in thousands)*
     Residence.............................       596        581       2.6%
     Business..............................       220        204       7.8
     Public................................        10         10       ---
                                                -----      -----
                                                  826        795       3.9
                                                =====      =====
                                                     
Six Month Period Ended June 30                       
------------------------------
  Access Minutes of Use (in millions)......     1,604      1,492       7.5
                                                =====      =====


* 1997 reflects a restatement of access lines in service to include Primary Rate
ISDN (Integrated Services Digital Network) channels to conform with the 1998
presentation.
 
 
OPERATING REVENUES
------------------
(Dollars in Thousands)
 
Six Month Period Ended June 30                   1998       1997
--------------------------------------------------------------------------------
Local services.............................  $165,594   $156,821
Network access services....................    90,257     86,392
Long distance services.....................    20,328     26,564
Ancillary services.........................    16,987     16,115
Directory and information services.........     1,879      1,835
                                             --------   --------
Total......................................  $295,045   $287,727
                                             ========   ========


                                       7
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

LOCAL SERVICES REVENUES

   1998 - 1997                              Increase
--------------------------------------------------------------------------------
   Six Months                        $8,773           5.6%
--------------------------------------------------------------------------------

   Local services revenues are earned by the Company 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 which expand the
utilization of the network.  These services include products such as Caller ID,
Call Waiting and Return Call.

   Higher usage of the Company's network facilities was the primary reason for
the increase in local services revenues in the first half of 1998.  This growth
was generated by an increase in access lines in service of 3.9% from June 30,
1997 and higher business message volumes.  Access line growth reflects primarily
higher demand for Centrex services and an increase in additional residential
lines.  Higher revenues from private line and switched data services also
contributed to the revenue growth in 1998.

   The Company also recognized higher revenues from public telephone and value-
added services. Value-added services revenues grew principally as a result of
higher customer demand and usage, while price increases for usage of the
Company's pay phones and the implementation of new charges to carriers resulting
from pay phone deregulation in April 1997 were the principal reasons for the
improvement in public telephone services revenues. Revenue growth was partially
offset by the elimination of Touch-Tone service charges, effective December 31,
1997. The elimination of these Touch-Tone service charges is expected to reduce
annual revenues by approximately $4,000,000.


NETWORK ACCESS SERVICES REVENUES

   1998 - 1997                              Increase
--------------------------------------------------------------------------------
   Six Months                        $3,865           4.5%
--------------------------------------------------------------------------------

   Network access services revenues are earned from carriers for their use of
the Company's local exchange facilities in providing usage services to their
customers.  In addition, end-user subscribers pay flat rate access fees to
connect to the Company's network.

   Network access services revenues grew in the first six months of 1998
primarily as a result of higher customer demand as reflected by growth in access
minutes of use of 7.5% from June 30, 1997.  Volume growth was boosted by the
expansion of the business market, particularly for high-capacity services.
Demand for special access services grew as Internet service providers and other
high-capacity users increased their utilization of the Company's network.
Growth in access revenues also reflects higher network usage by alternative
providers of intraLATA toll services.  In addition, higher end-user revenues
attributable to an increase in access lines in service contributed to revenue
growth in 1998.  This volume-related growth was partially offset by net price
reductions mandated by a federal price cap plan.

   Effective July 1, 1998, the Company implemented price decreases of
approximately $2,400,000 on an annual basis for interstate services, in
connection with the Federal Communications Commission's (FCC) Price Cap Plan.
The rates included in this 1998 filing will be in effect through June 1999.  The
July 1, 1998 rates include amounts necessary to recover the Company's
contribution to the FCC's new universal service fund.  The FCC has created a
multi-billion dollar interstate fund to link schools and libraries to the
Internet and to subsidize low-income consumers and rural health care providers.
Under the FCC's rules, all providers of interstate telecommunications services
must contribute to the fund.  The Company's contributions to the universal
service fund are included in Other Operating Expenses.


                                       8
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

LONG DISTANCE SERVICES REVENUES

   1998 - 1997                             (Decrease)
--------------------------------------------------------------------------------
   Six Months                      $(6,236)          (23.5)%
--------------------------------------------------------------------------------

   Long distance services revenues are earned primarily from calls made outside
a customer's local calling area, but within the same service area of the Company
(intraLATA toll).  Other long distance services that the Company provides
include 800 services and Wide Area Telephone Service (WATS).

   Long distance services revenues declined in the first half of 1998
principally due to increased competition for intraLATA toll services as a result
of the introduction of presubscription in August 1997. 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. The adverse
impact on revenues as a result of presubscription was partially mitigated by
increased network access services revenues for usage of the Company's network
by these alternative providers.

   Price reductions on certain toll services as part of the Company's response
to competition also contributed to the decline in long distance services
revenues in 1998. These revenue reductions were partially offset by higher
calling volumes generated by an increase in access lines in service.


ANCILLARY SERVICES REVENUES

   1998 - 1997                              Increase
--------------------------------------------------------------------------------
   Six Months                         $872             5.4%
--------------------------------------------------------------------------------

   The Company provides ancillary services which include billing and collection
services provided to long distance carriers and affiliates, customers premises
equipment (CPE) services, facilities rental services for affiliates and
nonaffiliates, usage of separately priced (unbundled) components of its network,
sales of materials and supplies to affiliates and voice messaging services.

   Ancillary services revenues grew in the first six months of 1998 due to a
combination of increased demand by long distance carriers and affiliates for
billing and collection services, increased market penetration for voice
messaging services, principally Home Voice Mail, and an increase in customer
late payment charges. This growth was partially offset by lower facilities
rental revenues from affiliates.


DIRECTORY AND INFORMATION SERVICES REVENUES

   1998 - 1997                              Increase
--------------------------------------------------------------------------------
   Six Months                          $44             2.4%
--------------------------------------------------------------------------------

   Directory and information services revenues are earned primarily from fees
for nonpublication of telephone numbers and multiple white page listings, and 
from a contract with an affiliate for usage of the Company's directory listings.

   Higher fees received from an affiliate for use of the Company's directory
listings was the principal reason for the increase in directory and information
services revenues in 1998.


                                       9
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

 
OPERATING EXPENSES
------------------
(Dollars in Thousands)
 
Six Month Period Ended June 30                          1998          1997
--------------------------------------------------------------------------------
 
Employee costs, including benefits and taxes..      $ 52,094      $ 50,788
Depreciation and amortization.................        62,319        62,752
Taxes other than income.......................        15,258        15,311
Other operating expenses......................        89,113        84,300
                                                    --------      --------
Total.........................................      $218,784      $213,151
                                                    ========      ========
 
EMPLOYEE COSTS

   1998 - 1997                             Increase
--------------------------------------------------------------------------------
   Six Months                       $1,306          2.6%
--------------------------------------------------------------------------------

   Employee costs consist of salaries, wages and other employee compensation,
employee benefits and payroll taxes paid directly by the Company.  Similar costs
incurred by employees of Bell Atlantic Network Services, Inc. (NSI), who provide
centralized services on a contractual basis, are allocated to the Company and
are included in Other Operating Expenses.

   The increase in employee costs was attributable to higher overtime pay
resulting from the winter storms experienced in the first quarter of 1998,
annual salary and wage increases for management and associate employees and the
effect of higher work force levels.  Employee costs were also higher as a result
of additional costs billed by an affiliate for a centralized repair and
maintenance center.  These increases were partially offset by lower pension and
benefit costs.  The reduction in pension and benefit costs was caused by a
number of factors, including changes in actuarial assumptions, favorable pension
plan investment returns and lower than expected medical claims.

   Associate employee wages and pension and other benefits are determined under
a contract with the union representing associate employees of the Company. On
August 11, 1998, the Company and the Communications Workers of America (CWA)
reached a tentative agreement on a new 2-year contract. The contract provides
for wage increases of up to 3.8 percent effective August 9, 1998, and up to 4
percent effective August 8, 1999. Pensions will increase by 11 percent. Union-
represented employees are eligible for standard cash awards of $400 for 1998 and
$500 for 1999, which can be increased or decreased based on financial and
customer care performance results. The new contract also includes other benefit
improvements and certain employment security provisions.

   The labor agreement with the CWA is subject to ratification by the union 
membership, which is expected within the next 30 days.


DEPRECIATION AND AMORTIZATION

   1998 - 1997                            (Decrease)
--------------------------------------------------------------------------------
   Six Months                        $(433)         (.7)%
--------------------------------------------------------------------------------

   Depreciation and amortization expense decreased in the first six months of
1998 over the same period in 1997 principally due to the effect of lower rates
of depreciation and amortization.  This decrease was substantially offset by
additional expense resulting from growth in depreciable telephone plant.


                                      10
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.



TAXES OTHER THAN INCOME

   1998 - 1997                            (Decrease)
--------------------------------------------------------------------------------
   Six Months                         $(53)         (.3)%
--------------------------------------------------------------------------------

   Taxes other than income consist principally of taxes for gross receipts,
property, capital stock and business licenses.

   The decrease in taxes other than income was largely attributable to a
reduction in property taxes primarily resulting from lower property assessments.
This reduction was substantially offset by higher gross receipts taxes resulting
from an increase in the revenue tax base.


OTHER OPERATING EXPENSES

   1998 - 1997                         Increase
--------------------------------------------------------------------------------
   Six Months                  $4,813            5.7%
--------------------------------------------------------------------------------

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

   The increase in other operating expenses was largely attributable to higher
network software purchases, an increase in the provision for uncollectible
accounts receivable and the Company's contribution to the federal universal
service fund, as described earlier.  Higher interconnection charges for
terminating calls on the networks of competitive local exchange and other
carriers and higher centralized services expenses allocated from NSI also
contributed to the increase in other operating expenses, but to a lesser degree.
The rise in centralized services expenses was primarily caused by transition and
integration costs allocated to the Company in connection with the merger of Bell
Atlantic and NYNEX Corporation, partially offset by lower pension and benefit
costs incurred by NSI.

   These increases were partially offset by lower costs for materials, rent and
contract services.  The reduction in contract services was due, in part, to the
disposition of Bell Atlantic's ownership interest in Bell Communications
Research Inc. (Bellcore) in November 1997.  The Company continues to contract
with Bellcore for technical and support services, but to a lesser extent.


OTHER INCOME, NET

   1998 - 1997                         Increase
--------------------------------------------------------------------------------
   Six Months                    $190           11.9%
--------------------------------------------------------------------------------

   The change in other income, net, was primarily due to the recognition of
interest income in connection with the settlement of tax-related matters.  This
change was partially offset by lower interest income associated with a note
receivable from an affiliate.


INTEREST EXPENSE

   1998 - 1997                       (Decrease)
--------------------------------------------------------------------------------
   Six Months                   $(559)          (6.1)%
--------------------------------------------------------------------------------

   Interest expense decreased in the first six months of 1998 principally due to
higher capitalized interest costs resulting from higher levels of average
telephone plant under construction.


                                      11
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

EFFECTIVE INCOME TAX RATES

   Six Months Ended June 30
--------------------------------------------------------------------------------
   1998                                 40.4%
--------------------------------------------------------------------------------
   1997                                 39.1%
--------------------------------------------------------------------------------

   The effective income tax rate is the provision for income taxes as a
percentage of income before the provision for income taxes and extraordinary
item.  The Company's effective income tax rate was higher in the first six
months of 1998 principally as a result of prior year adjustments and higher tax
credits recorded in 1997.


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

   The Company uses the net cash generated from operations and from external
financing to fund capital expenditures for network expansion and modernization,
and to pay dividends.  While current liabilities exceeded current assets at June
30, 1998, the Company's 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 the Company's
capital structure to ensure financial flexibility.

   As of June 30, 1998, the Company had $60,300,000 of an unused line of credit
with an affiliate, Bell Atlantic Network Funding Corporation.  In addition, the
Company had $50,000,000 remaining under a shelf registration statement filed
with the Securities and Exchange Commission for the issuance of unsecured debt
securities.

   The Company's debt ratio was 45.7% as of June 30, 1998, compared to 48.1% as
of June 30, 1997 and 48.1% as of December 31, 1997.

   On August 3, 1998, the Company declared and paid a dividend in the amount of
$16,000,000 to Bell Atlantic.


                                      12
<PAGE>
 
                      Bell Atlantic - West Virginia, Inc.

                          PART II - OTHER INFORMATION
                                        
Item 1.    Legal Proceedings

           There were no proceedings reportable under this Item.


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 June 30, 1998.


                                      13
<PAGE>
 
                      Bell Atlantic - West Virginia, 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 - WEST VIRGINIA, INC.



Date:  August 13, 1998              By  /s/ Edwin F. Hall
                                      ----------------------------------
                                            Edwin F. Hall
                                            Principal Financial Officer
                                            and Controller



     UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF AUGUST 12, 1998.


                                      14