<TABLE>
                                                                                                                    EXHIBIT 12

                                                                               PACIFIC BELL
                                                              COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                                                           Dollars in Millions


<CAPTION>
                                                  NINE MONTHS ENDED
                                                     SEPTEMBER 30,                     YEAR ENDED DECEMBER 31,
                                                ---------------------  -------------------------------------------------------
                                                   1998        1997      1997         1996       1995        1994       1993
                                                ---------------------  -------------------------------------------------------
<S>                                             <C>        <C>         <C>         <C>        <C>         <C>        <C>
Income (Loss) Before Income Taxes,
   Extraordinary Loss and Cumulative
   Effect of Accounting Changes                 $  1,468   $     (98)  $   34      $  1,567   $  1,161    $  1,276   $    (54)
     Add:Interest Expense                            320         342      460           379        420         437        429
         1/3 Rental Expense                           28          33       41            47         29          22         23
                                                ---------  ----------  --------    ---------  ---------   ---------  ---------

     Adjusted Earnings                          $  1,816   $     277   $  535      $  1,993   $  1,610    $  1,735   $    398
                                                =========  ==========  ========    =========  =========   =========  =========

Total Interest Charges                          $    347   $     360   $  497      $    412   $    420    $    437   $    429
1/3 Rental Expense                                    28          33       41            47         29          22         23
                                                ---------  ----------  --------    ---------  ---------   ---------  ---------

     Adjusted Fixed Charges                     $    375   $     393   $  538      $    459   $    449    $    459   $    452
                                                =========  ==========  ========    =========  =========   =========  =========

Ratio of Earnings to Fixed Charges                  4.84        0.70 *   0.99 **       4.34       3.59        3.78       0.88 ***

<FN>
*     As defined within the  computation of earnings to fixed charges,  earnings
      are $116 less than fixed  charges for the first nine  months of 1997.  See
      Management's  Discussion  and Analysis of Results of Operations in Pacific
      Bell's 1997 Annual Report on Form 10-K for a discussion of  merger-related
      and other unusual items that reduced earnings for 1997.
**    As defined within the  computation of earnings to fixed charges,  earnings
      are $3 less than fixed charges for 1997. See  Management's  Discussion and
      Analysis of Results of Operations in Pacific  Bell's 1997 Annual Report on
      Form 10-K for a discussion of merger-related  and other unusual items that
      reduced earnings for 1997.
***   As defined within the  computation of earnings to fixed charges,  earnings
      are $54 less than fixed charges for 1993. See Management's  Discussion and
      Analysis  of Results of  Operations  - Other  Business  Matters in Pacific
      Bell's  1997  Annual   Report  on  Form  10-K  for  a  discussion  of  the
      restructuring charge which reduced earnings for 1993.
</FN>
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