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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554


In the Matter of                 )
                                )
AT&T Corporation                 )
                                )    File Nos. EB-03-TC-020
                                )                       EB-03-TC-
                                )    141
Apparent Liability for           )
Forfeiture                       )    NAL/Acct. No. 200332170008
                                )    FRN: 0006380976


                              ORDER

Adopted: July 8, 2004                                                 
Released: July 9, 2004

By the Commission:

     1.   In this Order,  we adopt a  Consent Decree  terminating 
two investigations  by the  Commission,  one of  which led  to  a 
Notice of Apparent Liability,1 regarding potential non-compliance 
by AT&T Corporation (``AT&T'')  with the Do-Not-Call Requirements 
contained in Section 227  of the Communications  Act of 1934,  as 
amended (the  ``Act'') and  Section 64.1200  of the  Commission's 
rules.2 

     2.   The Commission and AT&T have negotiated the terms of  a 
Consent Decree that would resolve these matters and terminate the 
investigations.  A copy of the Consent Decree is attached  hereto 
and incorporated by reference.

     3.   After reviewing  the terms  of the  Consent Decree,  we 
find that the public  interest would be  served by approving  the 
Consent Decree and terminating the investigations.

     4.   Accordingly, IT IS ORDERED, pursuant to Sections  4(i), 
4(j), and 503(b) of the Communications Act of 1934, as  amended,3 
that the attached Consent Decree IS ADOPTED.

     5.   AT&T shall  make  its  voluntary  contribution  to  the 
United States  Treasury by  mailing a  check, wire  transfer,  or 
money order, payable to the  order of the Federal  Communications 
Commission, to the Federal Communications Commission,  Forfeiture 
Collection Section,  Finance  Branch, P.O.  Box  73482,  Chicago, 
Illinois 60673-7482. The payment  should reference NAL/Acct.  No. 
200332170008 and FRN 0006380976.

     


     6.   IT IS FURTHER ORDERED that the above-captioned 
Commission investigations into the matters described herein are 
terminated and the NAL is canceled. 


                         FEDERAL COMMUNICATIONS COMMISSION




                         Marlene H. Dortch
                         Secretary                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554




In the Matter of                 )
                                )
AT&T Corporation                 )    File No. EB-03-TC-020
                                )    File No. EB-03-TC-141
                                )
Apparent Liability for           )    NAL/Acct. No. 200332170008
Forfeiture                       )    FRN: 0006380976
                                )
                                )

                         CONSENT DECREE

I.  INTRODUCTION

     1.   The Federal Communications Commission (the ``FCC'' or 
the ``Commission'') and AT&T Corporation (``AT&T''), by their 
authorized representative, hereby enter into this Consent Decree 
to resolve two investigations (one of which involved  a Notice of 
Apparent Liability (``NAL''))4 (together, the ``Investigations'') 
by the Commission regarding potential non-compliance with the Do-
Not-Call requirements contained in Section 227 of the 
Communications Act of 1934, as amended (the ``Act''), and Section 
64.1200 of the Commission's rules.5  The Investigations were 
undertaken pursuant to Sections 4(i) and 403 of the Act.6 

     2.   In 1991, Congress enacted the Telephone Consumer 
Protection Act (``TCPA'') to protect consumers from unwanted and 
unsolicited telemarketing, among other things.7   The Commission 
in 1992 adopted section 64.1200(e) of the rules to require that 
any entity engaged in telephone solicitation maintain a Do-Not-
Call list to record residential telephone subscribers' requests 
not to receive future solicitations from that entity.8  In July 
2003, the Commission adopted new rules that supplement the 
company-specific Do-Not-Call requirements with a National Do-Not-
Call Registry that is maintained by the Federal Trade 
Commission.9  Those amendments to the FCC rules took effect 
October 1, 2003.

     3.   On April 1, 2003, the Enforcement Bureau of the 
Commission initiated an inquiry into AT&T's compliance with the 
company-specific Do-Not-Call rules then in effect.10  The inquiry 
sought information concerning AT&T's telemarketing procedures, 
its monitoring of Do-Not-Call requests, and its customer records.  
Based on that inquiry, and its review of residential customers' 
complaints, on November 3, 2003 the Commission released a NAL 
finding AT&T apparently liable for violations of the TCPA and the 
Commission's rule and proposing a forfeiture of $780,000.11  

     4.   AT&T filed an Opposition to the NAL, in which it denied 
having placed telemarketing calls to some of the named 
subscribers but admitted having placed such calls in error to 
many of the complaining customers.  AT&T contended that such 
inadvertent errors do not provide a basis for liability under the 
TCPA and section 64.1200 of the Commission's rules.  AT&T also 
contended that no forfeiture should be assessed under Section 503 
of the Act for such inadvertent errors because it had not 
``willfully'' or ``repeatedly'' failed to comply with the Act and 
the Commission's regulations.12

     5.   On December 5, 2003, the Bureau initiated an inquiry 
into AT&T's compliance with the Commission's amended rules with 
respect to the National Do-Not-Call Registry and requested that 
AT&T provide certain information.13  AT&T submitted responses to 
the Bureau's request for such information.14  On March 19, 2004, 
the Bureau sent a second letter of inquiry in this matter to 
AT&T, seeking further information about the company's compliance 
with Commission rules.15  AT&T has not yet filed a response to 
this second letter.

            6. On February 24, 2004,  AT&T filed a Complaint  for 
Injunctive  Relief  in  United  States  District  Court  for  the 
District of Columbia, seeking judicial enforcement of requests it 
had previously  made  to  the Commission  under  the  Freedom  of 
Information Act (``FOIA'') which it  claimed were related to  the 
NAL.16



II. DEFINITIONS

     7.   For the Purposes of this Consent Decree, the following 
definitions shall apply:

     (a)  The ``FCC'' or the ``Commission'' means the Federal 
     Communications Commission and all bureaus and offices of the 
     Commission, including the Enforcement Bureau.

     (b)  ``Bureau'' means the Enforcement Bureau of the Federal 
     Communications Commission.

     (c)  ``AT&T'' or the ``Company'' means AT&T Corporation, and 
     any affiliate, d/b/a, predecessor-in-interest, parent 
     companies and any direct or indirect subsidiaries of such 
     parent companies, or other affiliated companies or 
     businesses, and their successors and assigns.

     (d)  ``Parties'' means AT&T and the Federal Communications 
Commission.    

     (e)  ``Communications Act'' or ``Act'' means the 
     Communications Act of 1934, as amended, 47 U.S.C.  151 et 
     seq.

     (f)  ``Adopting Order'' means an Order of the Commission 
     adopting the terms and conditions of this Consent Decree 
     without change, addition or modification.

     (g)  ``Effective Date'' means the date on which the 
     Commission adopts the Adopting Order.

     (h)  ``Notice of Apparent Liability'' or ``NAL'' means the 
     Notice of Apparent Liability for Forfeiture released on 
     November 3, 2003, AT&T Corporation, Notice of Apparent 
     Liability for Forfeiture, 18 FCC Rcd 23398 (2003).

     (i)  ``Investigations'' means the NAL and the Bureau's 
     letters of inquiry in File Nos. EB-03-TC-020 and EB-03-TC-
     141, together with all other Do-Not-Call complaints against 
     AT&T received by the Commission prior to the Effective Date.

III. AGREEMENT

     8.   AT&T represents and  warrants that it  is the  properly 
named party  to  this  Consent  Decree and  is  solvent  and  has 
sufficient funds available to meet fully all financial and  other 
obligations  set  forth  herein.  AT&T  further  represents   and 
warrants that it has caused this Consent Decree to be executed by 
its authorized representative, as a true act and deed, as of  the 
date  affixed  next  to  said  representative's  signature.  Said 
representative and AT&T respectively affirm and warrant that said 
representative is acting in  his/her capacity and within  his/her 
authority as a corporate officer of  AT&T, and on behalf of  AT&T 
and that by his/her signature said representative is binding AT&T 
to the terms and conditions of this Consent Decree.

     9.   AT&T agrees that the  Commission has jurisdiction  over 
it and  the matters  contained  in this  Consent Decree  and  the 
authority to enter into and adopt this Consent Decree.

     10.  AT&T will make a  voluntary contribution to the  United 
States Treasury in  the amount  of four  hundred ninety  thousand 
dollars ($490,000) within 14  calendar days after the  Commission 
Order adopting this Consent Decree becomes final. AT&T must  make 
this payment by check, wire transfer, or money order drawn to the 
order of the  Federal Communications Commission,  and the  check, 
wire transfer, or  money order  should refer to  ``NAL Acct.  No. 
200332170008.'' If  AT&T makes  this payment  by check  or  money 
order, it  must mail  the check  or money  order to:   Forfeiture 
Collection  Section,  Finance   Branch,  Federal   Communications 
Commission, P.O.  Box 73482,  Chicago, Illinois,  60673-7482.  If 
AT&T makes  this payment  by  wire transfer,  it must  wire  such 
payment  in  accordance  with  Commission  procedures  for   wire 
transfers. 

     11.  For purposes of settling the matters set forth  herein, 
AT&T agrees to take the actions described below:

     (a)  For at least two (2) years from the Effective Date, 
     AT&T will perform quality control monitoring of the 
     compliance by its telemarketing representatives and those of 
     AT&T's vendors with the obligation to accept Do-Not-Call 
     requests by residential customers and appropriately transmit 
     them for implementation on the AT&T Do-Not-Call list.  

     (b)  In connection with subparagraph (a), AT&T will monitor 
     at least 40,000 telemarketing calls per month, which number 
     shall increase or decrease proportionately to the extent 
     that AT&T's number of monthly telemarketing calls increases 
     or decreases from its current monthly telemarketing volume.

     (c)  To the extent that such monitoring may disclose that 
     its telemarketing representatives (or those of its vendors) 
     have failed accurately to record and/or appropriately to 
     transmit for implementation a Do-Not-Call request made by 
     any customer, AT&T will promptly correct its Do-Not-Call 
     list to reflect that request.  

     (d)  AT&T will take appropriate disciplinary action and/or 
     require supplemental training in the event that its quality 
     control monitoring or any other source establishes that any 
     telemarketing representative has failed to follow legal 
     obligations or AT&T policies with respect to Do-Not-Call 
     requests.  In the case of a knowing and intentional failure 
     by a telemarketing representative employed by one of its 
     vendors, AT&T will direct its vendor to ensure that the 
     representative no longer performs telemarketing on AT&T's 
     behalf.  In the case of a knowing and intentional failure by 
     an AT&T employee, AT&T will also take disciplinary action to 
     the extent permitted under collective bargaining agreements 
     and applicable law.

     (e)  Before a telemarketing representative employed by AT&T 
     or by an AT&T telemarketing vendor makes telephone 
     solicitations to residential telephone subscribers on behalf 
     of AT&T, the representative will receive thorough Do-Not-
     Call training.  Such training will include educating the 
     representatives concerning state and federal Do-Not-Call 
     rules, including the requirements of the TCPA and associated 
     federal rules currently in effect.  

     (f)  AT&T will retain the results of such monitoring, and 
     any remedial action taken, for at least four (4) years from 
     the Effective Date and shall make such results available to 
     the Commission within twenty (20) days after the Commission 
     submits a request for such results to AT&T.

Nothing in this Compliance Plan shall alter AT&T's obligation  to 
otherwise comply with the Act and with the Commission's rules and 
orders.         

     12.  In express reliance on the covenants and 
representations contained herein, the Commission agrees to 
terminate the Investigations concerning compliance with Section 
227 of the Act and Section 64.1200(c) of the Commission's rules 
and resolve the Investigations, including the NAL.  By this 
Consent Decree, the Notice of Apparent Liability is cancelled, 
the apparent findings in the NAL are withdrawn, and the NAL has 
no legal force or effect.

     13.  The Parties  agree and  acknowledge that  this  Consent 
Decree shall constitute a final settlement of the Investigations. 
The Commission  agrees  that,  in the  absence  of  new  material 
evidence related  to  this matter,  it  will not  use  the  facts 
developed in the Investigations or the existence of this  Consent 
Decree, on  its  own motion,  to  initiate any  new  proceedings, 
formal or  informal, or  take any  actions, including  any  other 
enforcement action, against AT&T, nor will the Commission, on its 
own motion, seek any administrative or other penalties from  AT&T 
based on  these Investigations.  Consistent with  the  foregoing, 
nothing in this Consent Decree limits the Commission's  authority 
to consider and adjudicate any formal complaint that may be filed 
pursuant to Section 208 of the Act, 47 U.S.C.  208, and to  take 
any action in response to such complaint.

     14.  AT&T agrees to file within five (5) business days of 
the Effective Date a notice to dismiss with prejudice the 
complaint for injunctive and other relief captioned AT&T Corp. v. 
Federal Communications Commission, Case Number 1:04CV00249, 
pending in the United States District Court for the District of 
Columbia. The parties also agree to cooperate in any further 
action to obtain dismissal of the complaint in accordance with 
the notice required by this paragraph.

     15.  AT&T waives any and all rights it may have to seek 
administrative or judicial reconsideration, review, appeal, or 
stay, or to otherwise challenge or contest the validity of this 
Consent Decree and the Order adopting this Consent Decree, 
provided the Order adopts the Consent Decree without change, 
addition, or modification.

     16.  AT&T's decision to enter into this Consent Decree is 
expressly contingent upon the issuance of an Adopting Order by 
the Commission that is consistent with this Consent Decree, and 
which adopts the Consent Decree without change, addition, or 
modification.

     17.  AT&T represents and warrants that it shall not effect 
any change in its form of doing business or its organizational 
identity or participate directly or indirectly in any activity to 
form a separate entity or corporation that engages in acts 
prohibited in this Consent Decree or for any other purpose which 
would otherwise circumvent any part of this Consent Decree or the 
obligations of this Consent Decree.

     18.  In the event that this Consent Decree is rendered 
invalid by any court of competent jurisdiction, it shall become 
null and void and may not be used in any manner in any legal 
proceeding.

     19.  The Parties also  agree that if  any provision of  this 
Consent Decree  conflicts  with  any  subsequent  rule  or  order 
adopted by the  Commission, where compliance  with the  provision 
would result in a violation of the subsequent rule or order, that 
provision will be superseded by such Commission rule or order.

     20.  By this Consent  Decree, AT&T does  not waive or  alter 
its right to assert  and seek protection  from disclosure of  any 
privileged or otherwise confidential and protected documents  and 
information, or to seek appropriate safeguards of confidentiality 
for any competitively sensitive  or proprietary information.  The 
status of materials  prepared for, reviews  made and  discussions 
held  in  the  preparation  for  and  implementation  of   AT&T's 
compliance  efforts  under  this  Consent  Decree,  which   would 
otherwise be privileged or confidential,  are not altered by  the 
execution or implementation of the terms of this Consent  Decree, 
and no waiver of such privileges is made by this Consent Decree.

     21.  If either Party (or the United States on behalf of  the 
Commission) brings a judicial action to enforce the terms of  the 
Adopting Order, neither AT&T nor the Commission shall contest the 
validity of the Consent  Decree or the  Adopting Order, and  AT&T 
and the Commission will waive any  statutory right to a trial  de 
novo with respect to the issuance of the Adopting Order and shall 
consent to a  judgment incorporating  the terms  of this  Consent 
Decree.

     22.  The Parties  agree that  this Consent  Decree does  not 
constitute either an adjudication on  the merits or a factual  or 
legal finding regarding any compliance or noncompliance with  the 
requirements of the Act and the Commission's Rules.  The  Parties 
agree that this  Consent Decree is  for settlement purposes  only 
and that by agreeing to this Consent Decree, AT&T does not  admit 
or deny any wrongdoing, non-compliance,  or violation of the  Act 
or the Commission rules in  connection with the matters that  are 
the subject of this Consent Decree.  

     23.  AT&T agrees that any violation of the Consent Decree or 
the Adopting  Order will  constitute a  separate violation  of  a 
Commission order, entitling the Commission to exercise any rights 
or remedies attendant to the enforcement of a Commission order.

     24.  The Parties agree that the requirements of this Consent 
Decree shall expire thirty-six (36) months from the Effective 
Date.

     25.  This Consent Decree may be signed in counterparts.



For the Federal Communications Commission    For AT&T Corporation



By:______________________________  By:  
__________________________
       Marlene H. Dortch                
   Secretary                            

                                     
      ______________________________       
__________________________
       Date                               Date



   

_________________________

1 AT&T Corporation, Notice of Apparent Liability for  Forfeiture, 
18 FCC Rcd 23398 (2003) (NAL).
2 47 U.S.C.  227; 47 C.F.R.  64.1200.
3 47 U.S.C.  154(i), 154(j), 503(b).
4    AT&T  Corporation,   Notice   of  Apparent   Liability   for 
Forfeiture, 18 FCC Rcd 23398 (2003).
5    47 U.S.C.  227; 47 C.F.R.  64.1200.
6    47 U.S.C.  154(i), 403.
7 The  TCPA, Pub.  L.  No. 102-243,  105  Stat. 2394  (1991),  is 
codified at 47 U.S.C.  227.
8 Rules  and  Regulations  Implementing  the  Telephone  Consumer 
Protection Act of 1991, CC Docket No. 92-90, Report and Order,  7 
FCC Rcd 8752 (1992).
9 Rules  and  Regulations  Implementing  the  Telephone  Consumer 
Protection Act of 1991, CG  Docket No. 02-278, Report and  Order, 
18 FCC Rcd 14014 (2003) (TCPA Revisions Report and Order).
10 Letter from  Colleen K.  Heitkamp, Chief,   Telecommunications 
Consumers Division, Enforcement  Bureau, FCC, to  Michael F.  Del 
Casino, Regulatory Division Manager, AT&T (Apr. 1, 2003);  Letter 
from Colleen  K.  Heitkamp, Chief,  Telecommunications  Consumers 
Division, Enforcement  Bureau, FCC,  to  Michael F.  Del  Casino, 
Regulatory Division Manager,  AT&T (Apr. 10,  2003); Letter  from 
Colleen  K.   Heitkamp,  Chief,    Telecommunications   Consumers 
Division, Enforcement  Bureau, FCC,  to  Michael F.  Del  Casino, 
Regulatory Division Manager,  AT&T (Apr. 29,  2003); Letter  from 
Colleen  K.   Heitkamp,  Chief,    Telecommunications   Consumers 
Division, Enforcement  Bureau, FCC,  to  Michael F.  Del  Casino, 
Regulatory Division  Manager, AT&T  (June 2,  2003); Letter  from 
Colleen  K.   Heitkamp,   Chief,   Telecommunications   Consumers 
Division, Enforcement  Bureau, FCC,  to  Michael F.  Del  Casino, 
Regulatory Division Manager, AT&T (Aug. 15, 2003).
11 The NAL alleged violations of the company-specific Do-Not-Call 
requirements, not  the Commission's  rules  with respect  to  the 
National Do-Not-Call  Registry.
12 AT&T Opposition, filed December 17, 2003.  
13   See   Letter    from   Kurt    Schroeder,   Deputy    Chief, 
Telecommunications Consumers Division, Enforcement Bureau, FCC to 
Michael   Del   Casino,   Regulatory   Division   Manager,   AT&T 
Corporation, dated December 5, 2003. 
14 See Letter from Michael C. Lamb, Chief Counsel - AT&T Consumer 
Marketing  and   Sales,   to  Kurt   Schroeder,   Deputy   Chief, 
Telecommunications Consumers  Division, Enforcement  Bureau,  FCC 
dated February 2, 2004; Letter from Dermot Bree, Senior  Attorney 
- AT&T Small  Business Marketing  and Sales,  to Kurt  Schroeder, 
Deputy Chief, Telecommunications Consumers Division,  Enforcement 
Bureau, FCC dated February 6, 2004.
15   See   Letter    from   Kurt    Schroeder,   Deputy    Chief, 
Telecommunications Consumers Division, Enforcement Bureau, FCC to 
Michael   Del   Casino,   Regulatory   Division   Manager,   AT&T 
Corporation, dated March 19, 2004.
16 AT&T Corp. v. FCC,  Case No. 1:04CVV00249 (D.D.C., filed  Feb. 
17, 2004).