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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

     In the Matter of                                                 
     AT&T Corp.,                                                      
                                           )   File No. EB-04-MD-010  
     BellSouth Telecommunications, Inc.,                              

                               ORDER OF DISMISSAL

   Adopted: April 16, 2007 Released: April 17, 2007

   By the Chief, Market Disputes Resolution Division:

   1. On March 8, 2007, AT&T Inc., on behalf of its wholly owned affiliates,
   BellSouth Telecommunications, Inc. and AT&T Corp., submitted a pleading
   entitled "Motion to Dismiss This Action" ("Motion"). For the reasons
   described below, we grant that Motion and terminate the above-captioned

   2. On July 1, 2004, pursuant to section 208 of the Communications Act of
   1934, as amended (the "Act"),  AT&T Corp. ("AT&T") filed a formal
   complaint against BellSouth Telecommunications, Inc. ("BellSouth")
   challenging the lawfulness of a tariffed BellSouth special access discount
   plan. On December 9, 2004, the Commission issued an order finding that
   BellSouth's discount plan violated sections 272(c)(1) and 272(e)(3) of the
   Act, 47 U.S.C. SS 272(c)(1) and 272(e)(3). BellSouth sought review of the
   Commission's order in the U.S. Court of Appeals for the District of
   Columbia Circuit. In an opinion released Dec. 1, 2006, the Court vacated
   the Commission's order and remanded for further proceedings consistent
   with its opinion.  The Court's mandate issued on January 25, 2007.

   3. In their Motion, the parties note that both the sole complainant (AT&T
   Corp.) and the sole defendant (BellSouth) are now wholly owned affiliates
   of AT&T Inc., and that further proceedings would serve no purpose.
   Accordingly, on behalf of those affiliates, AT&T Inc. moved for dismissal
   of the complaint and of the proceeding.

   4. We are satisfied that dismissing the complaint will serve the public
   interest by promoting the private resolution of disputes and by
   eliminating the need for further litigation and the expenditure of further
   time and resources of the parties and this Commission.

   5. Accordingly, IT IS ORDERED, pursuant to sections 1, 4(i), 4(j), and 208
   of the Communications Act of 1934, as amended, 47 U.S.C. SS 151, 154(i),
   154(j), and 208, and the authority delegated in sections 0.111 and 0.311
   of the Commission's rules, 47 C.F.R. SS 0.111, 0.311, that the Motion is
   GRANTED, the Complaint is DISMISSED with prejudice, and this proceeding is


   Alexander P. Starr

   Chief, Market Disputes Resolution Division

   47 U.S.C. S 208.

   AT&T Corp. v. BellSouth Telecommunications, Inc., Memorandum Opinion and
   Order, 19 FCC Rcd 23898 (2004).

   BellSouth Telecommunications, Inc. v. Federal Communications Commission,
   Petition for Review, No. 05-1032 (D.C. Cir. Feb. 4, 2005).

   BellSouth Telecommunications, Inc. v. Federal Communications Commission,
   469 F.3d 1052 (D.C. Cir. 2006).

   BellSouth Telecommunications, Inc. v. Federal Communications Commission,
   No. 05-1032, Mandate (D.C. Cir. Jan. 25, 2007).

   Federal Communications Commission DA 07-1745

                                      2 -

   Federal Communications Commission DA 07-1745