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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                             )                               
                                                                             
                                             )                               
     In the Matter of                                                        
                                             )                               
     AT&T Inc.                                                               
                                             )   File No. EB-06-TC-3997      
     Compliance with the Commission's                                        
                                             )   NAL/Acct. No. 200732170057  
     Rules and Regulations Governing                                         
     Customer                                )   FRN: 0004305124             
                                                                             
     Proprietary Network Information         )                               
                                                                             
                                             )                               
                                                                             
                                             )                               


                                 ADOPTING ORDER

   Adopted: August 31, 2007 Released: August 31, 2007

   By the Chief, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau (the "Bureau") and AT&T Inc. ("AT&T").
       The Consent Decree terminates an investigation initiated by the
       Enforcement Bureau of the Federal Communications Commission ("FCC" or
       "Commission") regarding AT&T Corp.'s compliance with section 222(c)(1)
       of the Communications Act of 1934, as amended ("Communications Act" or
       "Act"), 47 U.S.C. S: 222(c)(1), and sections 64.2007, 64.2008(a),
       64.2008(d)(2), and 64.2009(a) of the Commission's rules, 47 C.F.R.
       S:S: 64.2007, 64.2008(a), 64.2008(d)(2), and 64.2009(a).

    2. The Bureau and AT&T have negotiated the terms of a Consent Decree that
       would resolve these matters and terminate the investigation. 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 adopting the Consent Decree and
       terminating the investigation. We also conclude that, in the absence
       of material new information not previously disclosed to the Bureau,
       the matters raised in the investigation do not raise any substantial
       and material questions of fact regarding AT&T's qualifications to be a
       Commission licensee.

    4. Accordingly, IT IS ORDERED, pursuant to Section 4(i) of the
       Communications Act of 1934, as amended, that the attached Consent
       Decree IS ADOPTED.

    5. IT IS FURTHER ORDERED that the above-captioned matter IS TERMINATED.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris A. Monteith

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                             )                               
                                                                             
                                             )                               
     In the Matter of                                                        
                                             )                               
     AT&T Inc.                                                               
                                             )   File No. EB-06-TC-3997      
     Compliance with the Commission's                                        
                                             )   NAL/Acct. No. 200732170057  
     Rules and Regulations Governing                                         
     Customer                                )   FRN: 0004305124             
                                                                             
     Proprietary Network Information         )                               
                                                                             
                                             )                               
                                                                             
                                             )                               


                                 CONSENT DECREE

   I. INTRODUCTION

    1. The Enforcement Bureau ("Bureau") of the Federal Communications
       Commission ("FCC" or "Commission" ) and AT&T Inc. ("AT&T" or
       "Company"), by their authorized representatives, hereby enter into
       this Consent Decree for the purpose of terminating the Bureau
       investigation regarding AT&T Corp.'s compliance with section 222(c)(1)
       of the Communications Act of 1934, as amended ("Communications Act" or
       "Act"), 47 U.S.C. S: 222(c)(1), and sections 64.2007, 64.2008(a),
       64.2008(d)(2), and 64.2009(a) of the Commission's rules, 47 C.F.R.
       S:S: 64.2007, 64.2008(a), 64.2008(d)(2), and 64.2009(a).

   II. BACKGROUND

   2. On November 3, 2006, pursuant to section 64.2009(f) of the Commission's
   rules, AT&T filed a notice on behalf of AT&T Corp. with the Commission
   reporting failures in its opt-out mechanism. AT&T stated that due to a
   shortage of CPNI notice inserts, AT&T Corp. had failed, on two separate
   occasions, to send customers CPNI notice inserts in bills which resulted
   in the use of the CPNI of 10,967 customers by AT&T without their consent.
   The company explained that its Charlotte, North Carolina, Bill Print
   Center ("BPC"), which was responsible for printing the bills and including
   the CPNI inserts, ran out of inserts between April 19 and 24, 2006, and
   again between April 27 and May 1, 2006 but continued to print and send the
   bills without the CPNI notices.  AT&T Corp. then erroneously updated its
   records to indicate that the customers who did not receive the CPNI
   notices had consented to the use of their CPNI and subsequently used the
   CPNI of 10,967 of those customers to market services to them.

   3. The Bureau met with AT&T for further discussion of these AT&T Corp.
   opt-out failures on November 8, 2006, and issued a Letter of Inquiry
   ("LOI") to AT&T on December 19, 2006. AT&T submitted its response to the
   LOI on January 10, 2007.

   III. DEFINITIONS

   4. For purposes of this Consent Decree, the following definitions shall
   apply:

     a. "Act" means the Communications Act of 1934, as amended.

     b. "AT&T" means AT&T Inc. 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. For purposes of the
        Investigation and corresponding Compliance Plan, as described within
        this document, AT&T only includes AT&T Corp.

     c. "AT&T Corp." means AT&T Corp., a wholly-owned subsidiary of AT&T Inc.

     d. "Bureau" means the Enforcement Bureau of the Federal Communications
        Commission.

     e. "Commission" or "FCC" means the Federal Communications Commission.

     f. "Effective Date" means the date on which the Commission releases the
        Adopting Order.

     g. "Investigation" means the investigation commenced by the Bureau's
        December 19, 2006 Letter of Inquiry to AT&T.

     h. "Order" or "Adopting Order" means an Order of the Bureau adopting the
        terms and conditions of this Consent Decree without change, addition,
        or modification, and formally terminating the above-captioned
        Investigation.

     i. "Parties" means AT&T and the Bureau.

   IV. AGREEMENT

   5. AT&T agrees that the Bureau, by delegated authority of the Commission,
   has jurisdiction over it and the subject matters contained in this Consent
   Decree and the authority to enter into and adopt this Consent Decree.

   6. The Parties agree and acknowledge that this Consent Decree shall
   constitute a final settlement of the Investigation. In express reliance on
   the covenants and representations contained herein, and to avoid the
   potential expenditure of additional public resources, the Bureau agrees to
   terminate the Investigation. In consideration for the termination of this
   matter and in accordance with the terms of this Consent Decree, AT&T
   agrees to the terms, conditions, and procedures contained herein.

   7. The Parties agree that this Consent Decree does not constitute either
   an adjudication on the merits or a factual or legal finding or
   determination regarding any compliance or noncompliance by AT&T with the
   requirements of the Act or the Commission's rules or orders. 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
   noncompliance, violation, or liability associated with or arising from its
   actions or omissions involving the Act or the Commission's rules that are
   the subject of this Consent Decree.

   8. In consideration for the termination of the Investigation in accordance
   with the terms of this Consent Decree, AT&T agrees to make a voluntary
   contribution to the United States Treasury, without further protest or
   recourse to a trial de novo, in the amount of three hundred fifty thousand
   dollars ($350,000) within thirty (30) days after the Effective Date. This
   voluntary payment does not constitute a fine or penalty for, or admission
   of, the violation of any law. The payment must be made by check or similar
   instrument, payable to the order of the Federal Communications Commission.
   The payment must include the NAL/Acct. No.  and FRN No. referenced above.
   Payment by check or money order may be mailed to Forfeiture Collection
   Section, Finance Branch, Federal Communications Commission, P.O. Box
   358340, Pittsburgh, Pennsylvania 15251. Payment by overnight mail may be
   sent to Mellon Client Service Center, 500 Ross Street, Room 670,
   Pittsburgh, Pennsylvania 15262-0001, Attn: FCC Module Supervisor. Payment
   by wire transfer may be made to: ABA Number 043000261, receiving bank
   Mellon Bank, and account number 911-6229. Please include your NAL/Acct.
   No. with your wire transfer remittance.

   9. To resolve and terminate the Investigation, and to ensure compliance
   with the Commission's CPNI opt-out rules, AT&T agrees to implement the
   following Compliance Plan ("Plan"). The Plan measures set forth in this
   paragraph shall be applicable only to AT&T Corp.:

   A. Distribution of CPNI Opt-Out Notices Via Bill Insert

   i. AT&T's Marketing Organization ("Marketing") shall provide written
   instructions to the AT&T BPC or other entity responsible for the printing
   and distribution of customer bills regarding distribution of CPNI opt-out
   notices in customer bill inserts.

   ii. Each time the BPC is instructed to distribute CPNI opt-out notices via
   a bill insert, the BPC shall:

   (a) monitor its inventory of CPNI inserts to ensure that it has an
   adequate supply to complete each bill cycle scheduled to include such
   inserts;

   (b) promptly contact Marketing if it determines that it has an
   insufficient supply of CPNI inserts to complete a particular bill cycle to
   obtain further instructions;

   (c) identify any bill cycle where customers did not receive an insert and
   provide that list to Marketing who will make a decision whether to send
   the CPNI insert with those customers' next bill round or to send out a
   separate mailing;

   (d) provide written confirmation to Marketing that BPC processed each
   billing cycle scheduled to include a CPNI insert according to Marketing's
   instructions and did not experience (or further experience) a shortage of
   CPNI insert inventory.

   iii. Marketing shall not update its records to signify opt-out consent for
   customers who were supposed to receive the CPNI inserts in a particular
   billing cycle until it has received written confirmation from BPC as set
   forth in 9(A)(ii)(d) above.

   B. Training

   AT&T shall provide annual CPNI training to Marketing employees responsible
   for managing distribution of CPNI opt-out notices. The training will focus
   on the federal CPNI opt-out requirements and the terms of the Plan as
   described in paragraph 9 of this Consent Decree.

   C. Reporting Non-Compliance

   AT&T shall report any non-compliance with this Plan to the Bureau within
   thirty (30) days after the discovery of non-compliance. AT&T shall certify
   at the end of the two (2) year term that it is in compliance with the
   terms of the Plan. Such certification must be mailed within fifteen (15)
   days after the two-year anniversary of the Effective Date of this Consent
   Decree to the Chief, Telecommunications Consumers Division, Enforcement
   Bureau, Federal Communications Commission, 445 12th Street, S.W. Room
   4-C244, Washington, D.C. 20554, and must include the file number listed
   above. AT&T will also send an electronic copy of its certification to
   other Telecommunications Consumers Division staff as directed by the
   Division Chief.

   D. Term of the Plan

   AT&T will implement this Compliance Plan within sixty (60) days of the
   Effective Date of this Consent Decree. The terms of this Compliance Plan
   will expire two (2) years after the Effective Date of this Consent Decree
   or upon the termination of the opt-out requirements set forth in sections
   64.2001-2009 of the Commission's rules, 47 C.F.R. S:S: 64.2001-2009,
   whichever is earlier.

   10. The Bureau agrees that, in the absence of new material evidence, it
   will not use the facts developed in this Investigation through the
   Effective Date of the Consent Decree, or the existence of this Consent
   Decree to initiate, on its own motion, any new proceeding, formal or
   informal, or take any action on its own motion against AT&T, concerning
   the matters that were the subject of the Investigation, provided that AT&T
   satisfies all of its obligations under this Consent Decree. The Bureau
   also agrees that, in the absence of new material evidence, it will not use
   the facts developed in this Investigation through the Effective Date of
   this Consent Decree, or the existence of this Consent Decree, to
   institute, on its own motion, any proceeding, formal or informal, or take
   any action on its own motion against AT&T with respect to AT&T's basic
   qualifications, including its character qualifications, to be a Commission
   licensee or authorized common carrier. Nothing in this Consent Decree will
   prevent the Bureau from instituting or recommending to the Commission any
   new investigation or enforcement proceeding against AT&T in the event of
   any alleged future misconduct involving violation of this Consent Decree,
   or violation of the Act or the Commission's rules. Nothing in this Consent
   Decree shall prevent the Commission or its delegated authority from
   adjudicating complaints filed pursuant to section 208 of the Act, 47
   U.S.C. S: 208, against AT&T for alleged violations of the Act, or for any
   other type of alleged misconduct, regardless of when such misconduct took
   place. The Commission's adjudication of any such complaint will be based
   solely on the record developed in that proceeding.

   11. AT&T's decision to enter into this Consent Decree is expressly
   contingent upon the Bureau's issuance of an Adopting Order. Provided the
   Bureau issues an Adopting Order, 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 Adopting Order.

   12. 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.

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

   14. By this Consent Decree, AT&T neither waives nor alters 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.

   15. AT&T agrees that any violation of the Order or of this Consent Decree
   shall constitute a separate violation of a Commission order, entitling the
   Commission to exercise any rights and remedies attendant to the
   enforcement of a Commission order.

   16. The Parties agree that if any provision of this Consent Decree is
   inconsistent with any subsequent rule or order adopted by the Commission,
   that provision will be superseded by such Commission rule or order.

   17. This Consent Decree may be signed in counterparts.

   For: AT&T Inc. For: Federal Communications Commission

   __________ _______________________ __________ ______________________

   Date (AT&T Signature) Date Kris A. Monteith

   Chief, Enforcement Bureau

   47 U.S.C. S: 154(i).

   47 C.F.R. S: 64.2009(f) states, "Carriers must provide written notice
   within five business days to the Commission of any instance where the
   opt-out mechanisms do not work properly, to such a degree that consumers'
   inability to opt-out is more than an anomaly."  47 C.F.R. S:64.2009(f).

   See Notification Under Section 64.2009(f), Letter from Davida Grant,
   Senior Counsel, AT&T Inc., to Marlene Dortch, Secretary, Federal
   Communications Commission, CC Docket No. 96-115 (filed November 3, 2006)
   ("November 3 Opt-Out Failure Notice").

   See Letter of Inquiry from Colleen Heitkamp, Chief, Telecommunications
   Consumers Division, Enforcement Bureau, to Jackie Flemming, Executive
   Director, Federal Regulatory, AT&T Inc. (December 19, 2006) ("December 19
   LOI").

   See Letter from Davida Grant, Senior Counsel, AT&T Inc., to Colleen
   Heitkamp, Chief, Telecommunications Consumers Division, Enforcement Bureau
   (January 10, 2007), ("January 10 Response").

   Federal Communications Commission DA 07-3812

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   Federal Communications Commission DA 07-3812

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