UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  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, 1996.

   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 1-6654


           THE SOUTHERN NEW ENGLAND TELEPHONE COMPANY
     (Exact name of registrant as specified in its charter)

                 Connecticut                  06-0542646
      (State or other jurisdiction of     (I.R.S. Employer
      incorporation or organization)      Identification Number)

      227 Church Street, New Haven, CT           06510
   (Address of principal executive offices)    (Zip Code)

                          (203) 771-5200
                  (Registrant's telephone number,
                       including area code)

                          Not applicable
       (Former name, former address and former fiscal year,
                   if changed since last report)

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 .

THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF SOUTHERN NEW ENGLAND
TELECOMMUNICATIONS 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).

                           - 1 -


Form 10-Q - Part I   The Southern New England Telephone Company



                 PART I - FINANCIAL INFORMATION


The  Southern New England Telephone Company ("Telephone Company")
is  a wholly owned telephone operating subsidiary of Southern New
England  Telecommunications Corporation ("Corporation")  and  has
its  principal executive offices at 227 Church Street, New Haven,
Connecticut 06510 (telephone number (203) 771-5200).

The  condensed financial statements on the following  pages  have
been  prepared  pursuant  to the rules  and  regulations  of  the
Securities and Exchange Commission ("SEC") and, in the opinion of
management,  include  all  adjustments,  which  are  normal   and
recurring  in  nature, necessary for fair presentation  for  each
period   shown.    The  1995  financial  statements   have   been
reclassified   to  conform  to  the  current  year  presentation.
Certain information and footnote disclosures normally included in
financial   statements  prepared  in  accordance  with  generally
accepted  accounting  principles have been condensed  or  omitted
pursuant  to such SEC rules and regulations.  Management believes
that  the  disclosures made are adequate to make the  information
presented  not  misleading.  Operating results  for  any  interim
periods,  or  comparisons  between  interim  periods,   are   not
necessarily  indicative of the results that may be  expected  for
full   fiscal  years.   It  is  suggested  that  these  financial
statements  be read in conjunction with the financial  statements
and notes thereto included in the Telephone Company's 1995 Annual
Report on Form 10-K.

                           - 2 -

Form 10-Q - Part I    The Southern New England Telephone Company


      CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
                                
                                
                                                 (Unaudited)
                                     For the Three        For the Nine
                                     Months Ended         Months Ended
                                     September 30,        September 30,
Dollars in Millions                 1996      1995       1996      1995
                                                           
Revenues                                                   
Local service                    $ 170.5   $ 161.8   $  503.7    $  479.2
Network access                      94.4      91.8      288.5       276.3
Intrastate toll                     62.1      66.4      193.1       202.0
Publishing and other                56.7      63.7      175.2       179.6
Total Revenues                     383.7     383.7    1,160.5     1,137.1
                                                           
Costs and Expenses                                         
Operating                          124.4     116.5      348.4       336.3
Maintenance                         87.1      80.2      255.6       248.8
Depreciation and amortization       75.1      75.6      224.4       225.6
Taxes other than income             12.5      14.0       37.1        40.6
Total Costs and Expenses           299.1     286.3      865.5       851.3
                                                           
Operating Income                    84.6      97.4      295.0       285.8
                                                            
Interest expense                    11.3      13.1       34.4        39.5
Other income, net                     .7       4.1        2.1         6.7
                                                            
Income Before Income Taxes          74.0      88.4      262.7       253.0
                                                            
Income taxes                        26.4      32.8       99.3        97.1
                                                            
Net Income                       $  47.6   $  55.6   $  163.4    $  155.9
                                                            
Retained Earnings, Beginning     
 of Period                       $  73.0   $ 686.8   $   31.8    $  648.0
   Net income                       47.6      55.6      163.4       155.9
   Dividends declared to parent    (40.5)    (28.9)    (115.1)      (90.4)
Retained Earnings, End           
 of Period                       $  80.1   $ 713.5   $   80.1    $  713.5


The accompanying notes are an integral part of these financial statements.
                                
                                 - 3 -

                                
Form 10-Q - Part I   The Southern New England Telephone Company
                                
                                
                    CONDENSED BALANCE SHEETS
                                
                                
Dollars in Millions                    September 30, 1996   December 31, 1995
                                           (Unaudited)   
Assets                                                
Cash and temporary cash investments          $    108.1        $    70.5
Accounts receivable, net of allowance                 
 for uncollectibles of $28.1 and $26.1, 
 respectively                                     284.9            298.1
Accounts receivable from affiliates                 8.4             10.9
Materials and supplies                             12.8             10.7
Prepaid publishing                                 33.7             37.2
Deferred income taxes                              62.9             57.8
Other current assets                               33.2             25.2
Total Current Assets                              544.0            510.4
Total telephone plant, at cost                  4,286.6          4,166.9
Less:  Accumulated depreciation                 2,973.4          2,832.9
Net Telephone Plant                             1,313.2          1,334.0
Deferred charges and other assets                  68.3             53.2
Total Assets                                   $1,925.5         $1,897.6
                                                      
Liabilities and Shareholder's Equity                  
Accounts payable and accrued expenses          $  167.5        $   180.9
Restructuring charge - current                     67.2             59.0
Advance billings and customer deposits             46.9             43.0
Accrued compensated absences                       34.1             33.8
Accounts payable to affiliates                     22.7             29.6
Other current liabilities                         101.4             61.8
Total Current Liabilities                         439.8            408.1
                                                       
Long-term debt                                    746.8            746.6
Unamortized investment tax credits                 16.0             17.6
Restructuring charge - long-term                   13.0             13.0
Other liabilities and deferred credits             98.7            149.4
Total Liabilities                               1,314.3          1,334.7
                                                         
Shareholder's Equity                                     
Common stock; $12.50 par value; 30,428,596                       
 shares issued and 30,385,900 outstanding         380.4            380.4
Proceeds in excess of par value                   152.1            152.1
Retained earnings                                  80.1             31.8
Less:  Treasury stock; 42,696 shares, at cost      (1.4)            (1.4)
Total Shareholder's Equity                        611.2            562.9
Total Liabilities and Shareholder's Equity     $1,925.5         $1,897.6

The accompanying notes are an integral part of these financial statements.
                                
                              - 4 -  
                                
Form 10-Q - Part I   The Southern New England Telephone Company
                                
                                
               CONDENSED STATEMENTS OF CASH FLOWS
                                
                                
                                                          (Unaudited)
                                                  For the Nine Months Ended
                                                         September 30,
Dollars in Millions                                    1996         1995
                                                          
Operating Activities                                      
  Net income                                          $ 163.4    $ 155.9
  Adjustments to reconcile net income to                    
   net cash provided by operating activities:
     Depreciation and amortization                      224.4      225.6
     Restructuring payments                             (56.5)     (61.7)
     Change in operating assets and liabilities, net    (21.2)     (15.8)
     Other, net                                          25.3       14.9
     Net Cash Provided by Operating Activities          335.4      318.9
                                                          
Investing Activities                                      
  Cash expended for capital additions                  (202.6)    (215.8)
  Other, net                                              2.4         .6
  Net Cash Used by Investing Activities                (200.2)    (215.2)
                                                          
Financing Activities                                      
  Cash dividends paid                                   (97.6)     (91.5)
  Net Cash Used by Financing Activities                 (97.6)     (91.5)
                                                          
Increase in Cash and Temporary Cash Investments          37.6       12.2
                                                          
Cash and temporary cash investments at
 beginning of period                                     70.5       44.2
                                                          
Cash and Temporary Cash Investments at 
 End of Period                                        $ 108.1    $  56.4
                                                          
Income Taxes Paid                                     $  83.1    $  94.4
                                                          
Interest Paid                                         $  36.6    $  36.7


The accompanying notes are an integral part of these financial statements.
                                
                                - 5 -
                                

Form 10-Q - Part I   The Southern New England Telephone Company
                                
                                
                  NOTES TO FINANCIAL STATEMENTS
                      (Dollars in Millions)
                           (Unaudited)


Note 1:  Restructuring Charge

In  December 1993, the Telephone Company recorded a restructuring
charge  of  $335.0  to provide for a comprehensive  restructuring
program.  Specifically, the program included costs to be incurred
to  facilitate  employee separations.  The charge  also  included
incremental  costs  of:   implementing appropriate  reengineering
solutions;  designing and developing new processes and  tools  to
continue  the Telephone Company's provision of excellent service;
and  retraining of the remaining employees to help them meet  the
changing demands of customers.

The  original  1993 restructuring charge and costs  incurred  are
summarized as follows:

                         Balance    Costs     Costs     Costs    Balance
                           at      incurred  incurred  incurred    at
                         Dec. 31,   during    during    during  Sept. 30,
                          1993       1994      1995      1996     1996
Employee separation   
 costs                   $160.0     $(38.6)   $(107.8)   $ 48.2   $61.8
Process and systems                
 reengineering            145.0      (35.0)     (74.2)    (36.4)   (0.6)
Exit and other costs       30.0       (1.5)      (5.9)     (3.6)   19.0
Total                    $335.0     $(75.1)   $(187.9)   $  8.2   $80.2

Costs  incurred  for employee separations included  payments  for
severance, unused compensated absences, health care continuation,
as  well  as  non-cash net pension and postretirement  settlement
gains.    Process   and  systems  reengineering  costs   included
incremental  costs incurred in connection with the  execution  of
numerous  reengineering  programs involving  network  operations,
customer  service, repair and support processes.  Exit and  other
costs  included  expenses related to redesigning  work  areas  to
reduce overall corporate space requirements.

In  July 1995, the early-out offer ("EOO") was available  to  the
bargaining-unit  work  force  and approximately  2,600  employees
accepted  the  offer and left the Telephone Company through  June
1996.   Net settlement gains of $22.9 were recorded in the second
quarter  1996  to account for the lump-sum pension payments  made
for  employee separations during the quarter.  A settlement  gain
of  $20.5 was also recorded in the third quarter 1996 to  account
for  the  remaining settlement gains resulting from the EOO.   In
addition,  approximately  400  management  employees  accepted  a
severance   plan  during  1996.   Approximately  370   management
employees have left the Telephone Company under this plan through
September 30, 1996.  As a result, a net settlement gain of  $21.3
was recorded in the third quarter 1996.

Total  employee separations under the restructuring  program  are
expected  to approximate 4,100 employees.  As of June  30,  1996,
approximately  4,020  employees had left  the  Telephone  Company
under  the  restructuring  program:   890  employees  left  under
severance  plans  through the end of 1994, 2,140  employees  left
primarily under the EOO in 1995 and 990 employees left under  the
EOO  and severance plans through the nine months of 1996.   Total
employee  separations  to date were offset  substantially  by  an
increase  in provisional employees to support greater demand  for
services.

                            - 6 -


Form 10-Q - Part I   The Southern New England Telephone Company


                  NOTES TO FINANCIAL STATEMENTS
                      (Dollars in Millions)
                           (Unaudited)


Note 1:  Restructuring Charge (continued)

As  a  result of employee separations since September  30,  1995,
employee-related expenses for the first nine months of 1996  were
reduced by approximately $50 compared with the first nine  months
of  1995,  net of costs for provisional employees.  Beginning  in
1997,  the  Telephone  Company  anticipates  annual  savings   of
approximately $100 from reduced employee-related expenses, net of
costs for provisional employees.  These anticipated savings  will
also be offset by growth in the business.

Cash expenditures for the restructuring program are estimated  to
be  $65  in 1996.  The EOO was funded primarily  by the  pension  
and  postretirement  plans.   Incremental  capital expenditures  
related  to the restructuring program  approximated $14 in the 
first nine months of 1996.  These items were recorded in property,  
plant and equipment and will result in increased depreciation  
expense in future years.  The Telephone Company currently 
anticipates total incremental capital expenditures of approximately 
$20 in 1996 under the restructuring program.

Certain process improvement and reengineering programs have  been
redesigned due to business changes and will extend into 1997.  In
addition, shifts within reserve categories are expected to  occur
in  the fourth quarter 1996.  Management believes that the  total
restructuring reserve balance of $80.2 as of September  30,  1996
is  adequate  for future estimated costs under the  restructuring
program.

                             - 7 -


Form 10-Q - Part I   The Southern New England Telephone Company


              MANAGEMENT'S DISCUSSION AND ANALYSIS
                      (Dollars in Millions)

Comparison  of  nine months ended September  30,  1996  vs.  nine
months ended September 30, 1995

Operating Results
 
Net income was $163.4 in 1996 compared with $155.9 in 1995.  The
increase  was  due to strong growth in demand for local  service
and  network  access,  offset  partially  by  anticipated  lower
intrastate toll rates.

Revenues

For the Nine Months Ended September 30,           1996        1995
Local service                                  $  503.7   $  479.2
Network access                                    288.5      276.3
Intrastate toll                                   193.1      202.0
Publishing and other                              175.2      179.6
Total Revenues                                 $1,160.5   $1,137.1

Local  service revenues, derived from providing local  exchange,
public  telephone  and  local private line  services,  increased
$24.5,  or  5.1%,  in 1996.  The increase was due  primarily  to
growth  of  4.3%  in  access lines in service  to  approximately
2,145,000  lines  as  of  September  30,  1996.   This  increase
included   significant  growth  in  Centrex  sales  and   second
residential access lines.  Local service revenues also increased
due  to  growth  in subscriptions to SmartLink[R] advanced calling
features,  including  Caller  ID,  missed  call  dialing,   call
blocking  and  call  tracing.  Management  continues  to  expect
competition   to   impact  local  service  revenues   as   other
telecommunications   providers   offer   local   service    [see
Competition].

Network access revenues, generated primarily from interstate and
intrastate  services,  increased  $12.2,  or  4.4%.   Interstate
access revenues increased $6.6, or 2.5%, due primarily to growth
in  interstate  minutes of use of approximately  9%.   Partially
offsetting the impact of the increase in minutes of  use  was  a
decrease  in  rates  due  to  discount  calling  plans  and  the
Telephone   Company's  1996  Federal  Communications  Commission
("FCC")   filing  under  price  cap  regulation.   In  addition,
intrastate  access revenues increased $5.6 due primarily  to  an
increase  in intrastate minutes of use by competitive  providers
of intrastate long-distance service.
 
Intrastate toll revenues, which include primarily revenues  from
toll  and  WATS services, decreased $8.9, or 4.4%, due primarily
to  reduced intrastate toll rates, offset partially  by  a  2.3%
increase in toll message volume.  The decline in rates  was  due
primarily  to  the  migration of customers  to  several  of  the
Corporation's  discount calling plans.  Higher toll  volume  was
mainly  due to greater customer demand, partially offset by  the
increasingly   competitive  toll  market.    The   offering   of
competitive  discount  calling  plans  and  the  completion   of
intrastate equal access in November 1996 will continue to  place
downward pressure on intrastate toll revenues.

The  absence of billing revenues upon the expiration of the  AT&T
contract  was  the  primary contributor to the $4.4  decrease  in
publishing and other revenues.
 
                             - 8 -


Form 10-Q - Part I   The Southern New England Telephone Company


              MANAGEMENT'S DISCUSSION AND ANALYSIS
                      (Dollars in Millions)


Comparison  of  nine months ended September  30,  1996  vs.  nine
months ended September 30, 1995
  
Costs and Expenses

For the Nine Months Ended September 30,          1996    1995
Operating                                       $348.4  $336.3
Maintenance                                      255.6   248.8
Total operating costs                            604.0   585.1
Depreciation and amortization                    224.4   225.6
Taxes other than income                           37.1    40.6
Total Costs and Expenses                        $865.5  $851.3

Operating  costs - Operating costs consist primarily of employee-
related  expenses,  including  wages  and  benefits.   Cost   of
services  and  general  and administrative  expenses,  including
marketing,  represent the remaining portion of  these  expenses.
Total  operating costs increased $18.9, or 3.2%.   Excluding  an
$11.0  charge in 1995, associated primarily with a court  ruling
on  the  Telephone  Company's labor practices,  operating  costs
increased  $29.9.  Higher contracted services, due  in  part  to
outsourcing   certain  functions,  marketing  and  uncollectible
expenses  were  the primary factors of the increase.   Partially
offsetting  these  increases was a reduction in employee-related
expenses  as  a net result of a smaller work force, compensation
increases, and increased overtime.  The Telephone Company's work
force  decreased  to  8,656 employees  at  September  30,  1996,
compared  with  8,873  employees  at  September  30,  1995,  due
primarily to the EOO and severance plans under the restructuring
program [see Note 1].  The decrease in the work force was offset
substantially  by  the hiring of provisional employees  to  meet
increased demand for services.
 
Interest Expense and Other Income, Net

For the Nine Months Ended September 30,          1996    1995
Interest expense                                $34.4   $39.5
Other income, net                               $ 2.1   $ 6.7

The  decrease in interest expense and other income, net  is  due
primarily  to a change in the reporting of capitalized  interest
to a reduction in interest expense.  Prior to the discontinuance
of   Statement  of  Financial  Accounting  Standards   No.   71,
"Accounting  for  the Effects of Certain Types  of  Regulation,"
capitalized  interest  was reported  as  a  component  of  other
income, net.

Income Taxes

For the Nine Months Ended September 30,          1996    1995
Income taxes                                    $99.3   $97.1

The  combined federal and state effective tax rate for 1996  was
37.8%  compared  with  38.4%  for 1995.   The  decrease  in  the
effective  tax rate was due primarily to the combined effect  of
lower  Connecticut state tax rates and a higher level  of  state
tax credits in 1996.

                            - 9 -


Form 10-Q - Part I   The Southern New England Telephone Company


              MANAGEMENT'S DISCUSSION AND ANALYSIS
                      (Dollars in Millions)


Comparison of balances as of September 30, 1996 vs. December 31,
1995

Other Current Liabilities
 Other current liabilities increased $39.6 due to an increase  in
 dividends payable and an increase in accrued income taxes due to
 the timing of payments.
 
Restructuring Charge
 The   combined   current  and  long-term  restructuring   charge
 increased  $8.2  due to pension settlement gains  of  $22.9  and
 $41.8  recorded  in  the  second  and  third  quarter  of  1996,
 respectively.   These gains were offset by the  charges  against
 the restructuring reserve for the period.
 
Other Liabilities and Deferred Credits
 Other  liabilities  and  deferred credits  decreased  $50.7  due
 primarily  to the settlement gains discussed under Restructuring
 Charge, above, lowering the accrued pension liability.

Liquidity and Capital Resources

 The  Telephone  Company generated cash flows from operations  of
 $335.4  during  the  nine months ended  September  30,  1996  as
 compared with $318.9 during the nine months ended September  30,
 1995.   The  primary  use  of corporate funds  continued  to  be
 capital expenditures.
 
 For  the  nine  months ended September 30,  1996,  cash  outlays
 relating to the Telephone Company's restructuring charge totaled
 $56.5.  Primarily all of the expenditures related to incremental
 costs  incurred  for  executing numerous reengineering  programs
 during  the  first  nine months of 1996.  All cash  expenditures
 were   funded  with  cash  flows  from  operations.   Management
 anticipates  that  cash  expenditures  in  connection  with  the
 restructuring program will approximate $65 in 1996 and  will  be
 funded from operations.

Competition

The  Telephone Company is experiencing increased competition from
carriers,  including competitive access providers, that construct
and  operate  their own communications systems and  networks,  as
well as from resellers of telecommunications systems and networks
of  underlying  carriers.  Approximately  140  telecommunications
providers  have received approval from the Department  of  Public
Utility   Control  ("DPUC")  to  offer  intrastate  long-distance
services.  In addition, over 60 companies have filed for  initial
certificates of public convenience and necessity and are awaiting
DPUC approval.  The implementation of intrastate equal access for
all dual preferred interexchange carrier capable switches will be
completed by November 1996.

To  provide  competitive  products, Wireline  has  realigned  its
discount  and  rate  structures to provide Connecticut  customers
with  SNET  All  Distance[SM], a one bill,  seamless  toll  service
product  line which includes discount calling plans that  include
intrastate, interstate and international calling.  The  migration
of  customers  to  these bundled calling plans will  continue  to
place  downward pressure on intrastate toll rates  and  revenues,
while  at  the  same  time,  promote growth  for  interstate  and
international toll services.

                            - 10 -

Form 10-Q - Part I   The Southern New England Telephone Company


              MANAGEMENT'S DISCUSSION AND ANALYSIS
                      (Dollars in Millions)


Concerning  competition  for  local  exchange  service,   fifteen
telecommunications  providers have been granted  certificates  of
public  convenience  and  necessity for  local  service  and  two
additional applications are pending before the DPUC.  The  effect
of  increased  competition on local service  revenues  cannot  be
predicted  at  this  time.   While some  customers  may  purchase
services  from  competitors, the Telephone Company  expects  that
most competitors will resell the Telephone Company's network  and
that  increased network access revenues will offset a portion  of
local service revenues lost to competition.

Regulatory Matters

Federal Regulatory Initiatives

On  February 8, 1996, Congress passed the Telecommunications  Act
of   1996  ("Act").   The  Act  was  designed  to  overhaul  U.S.
Telecommunication   policy   by  removing   barriers   to   local
competition.   The  FCC's  First  and  Second  Report  and  Order
("Order"),  adopted  August  1,  1996,  implements  the  Act  and
contains numerous provisions regarding the interconnection of the
Telephone  Company's  network  with  those  of  its  competitors.
Massive changes to network and data systems will be required  for
the Telephone Company to comply with the Order.  In addition, the
Order would require fundamental changes in the development of the
prices  that  the Telephone Company would charge competitors  for
purchasing   regulated  network  products  and  services.    This
decision is the first of three major rulemakings to carry out the
Act.   Future decisions will include universal service and access
charge  reform.  With respect to these decisions, the  Order,  as
well as universal service and access charge reform, could have  a
material negative impact on the Telephone Company.  The Order was
appealed  by  various  local telephone companies,  including  the
Telephone Company, the National Association of Regulatory Utility
Commissioners and individual state regulatory commissions.

On  October 15, 1996, the Court issued an injunction delaying the
effectiveness of the pricing provisions and the "pick and choose"
rule of the Order.  The Court is expected to issue a final ruling
on  this  matter  in  early Spring 1997.  The  FCC  appealed  the
Court's  decision  to stay these rules with  the  Supreme  Court.
Justice   Clarence  Thomas  of  the  Supreme  Court  subsequently
declined  to  hear the appeal, however the FCC  has  requested  a
review from the full Supreme Court.


State Regulatory Initiatives

On  March  15, 1996, the Telephone Company filed a petition  with
the  DPUC  requesting a waiver of the section  of  the  Act  that
requires the pricing of wholesale local residential service to be
based on retail rates minus avoided costs.  On May 17, 1996,  the
DPUC  issued a decision denying the Telephone Company's  petition
without  prejudice.   The  DPUC  determined  that  the  Telephone
Company may be entitled to a suspension of the application of the
Act's  resale  provisions, but that the record in the  proceeding
was   not  sufficient  to  make  that  determination.   The  DPUC
indicated  that  the Telephone Company may find it  necessary  to
renew  its  petition  after the DPUC's review  of  the  Telephone
Company's  revised  cost studies and determinations  regarding  a
universal service fund for the State of Connecticut.  On May  31,
1996,  the  DPUC  began a proceeding to review the  revised  cost
studies  submitted by the Telephone Company.  This proceeding  is
currently  being held in abeyance pending action  by  the  Court,
described previously.

                             - 11 -

Form 10-Q - Parts I & II  The Southern New England Telephone Company


              MANAGEMENT'S DISCUSSION AND ANALYSIS
                      (Dollars in Millions)

In  compliance with the Act, the Telephone Company has filed with
the  DPUC numerous cost studies supporting its proposed wholesale
(i.e.,  resale) and unbundled rates for interconnection services.
In  light  of  the Order, the DPUC on September 26, 1996  held  a
hearing  on  resale  rates.  The DPUC  ordered  that  an  interim
discount  rate  of 21% off retail prices be applied  to  services
resold  to competitors.  This percentage represents the  midpoint
between  the 17% and 25% proxy rates required by the FCC  in  its
Order.   The  day  following  the hearing,  the  Court  issued  a
temporary  stay of the Order, pending a decision on  the  various
stay  motions  filed  by local exchange carriers,  including  the
Telephone  Company, with the Court.  As a result of this  action,
the  Telephone Company requested a deferral of the effective date
of  the 21% discount rate until such time as the Court's stay was
lifted  or  until the DPUC reviewed the merits of  the  Telephone
Company's   appeal.   The  DPUC  found  merit  in  the  Telephone
Company's  request  and deferred the implementation  of  the  21%
rate.   In  the meantime, as requested by the DPUC, the Telephone
Company has filed new cost studies related to the discount rate.

On  November  8, 1996, the DPUC issued a draft decision  granting
the  Telephone  Company's  request  to  reclassify  message  toll
service and calling card service from the noncompetitive category
to competitive in its entire service territory.  Reclassification
provides  the  Telephone  Company with the  opportunity  to  gain
additional  promotional and pricing flexibility for its  products
and  services, and to operate under regulatory guidelines similar
to its competitors.

                  PART II  -  OTHER INFORMATION
                                
Item 1.  Legal Proceedings
       
         There were no material developments in the third
         quarter of 1996.

Item 6.  Exhibit and Reports on Form 8-K
       
    (a)  Exhibit.
       
         (27) Financial Data Schedule.
       
    (b)  Reports on Form 8-K.
       
         On July  23, 1996, the Telephone Company filed a  report
         on Form  8-K,  dated  July  23,  1996  announcing   the
         Corporation's  financial results for the  second  quarter
         of 1996.
       
         On  October  22,  1996,  the Telephone  Company  filed  a
         report  on  Form  8-K, dated October 22, 1996  announcing
         the   Corporation's  financial  results  for  the   third
         quarter of 1996.

                                - 12 -


Form 10-Q - Part II   The Southern New England Telephone Company





                           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.

                       The Southern New England Telephone Company


November 12, 1996



                       /s/ Donald R. Shassian
                       Donald R. Shassian
                       Senior Vice President and Chief Financial Officer