Federal Universal Connectivity Charge

The FCC has established a Universal Service Fund (USF) that provides telecommunications services to customers in rural areas, low income customers and advanced services, such as Internet access, to schools, libraries and health care providers. AT&T and other carriers are required to contribute to the USF. Since January, 1998, AT&T has recovered this contribution, and its associated administrative costs, through a Universal Connectivity Charge (UCC). As a result of a December 13, 2002, Federal Communications Commission (FCC) decision, the FCC decided on a prospective basis that if a carrier wants to recover its Universal Service Fund (USF) assessment payments directly from its customers in a separate line item, it can only do so at a rate which does not exceed the applicable USF contribution factor paid by the carrier. As a result of this decision, the Administrative Expense Fee was created. This fee recovers a portion of AT&T's internal costs associated with the support of the Federal Communications Commission's Universal Service Fund (USF) program. Effective October 1st, 2009 the 4th Quarter UCC factor will decrease to 12.3%. The applicable quarterly contribution factor can also be found on the FCC's Contribution Factors & Quarterly Filings Site. Effective October 1st, 2009, the Administrative Expense Fee, that recovers a portion of AT&T's internal costs associated with the Federal Communications Commission's Universal Service Fund (USF) will remain 0.88%. We continue to make every effort to recover these costs in a fair and equitable manner.

Carrier Line Charge

On October 1, 2002, AT&T revised the Carrier Line Charge (CLC) structure by bifurcating it into two different charges. No service bears both charges.The Carrier Line Assessment is applied to certain low end services. This charge is a market based monthly recurring charge. All other customers who pay a CLC will be billed a CLC charge. The CLC charge is a flat monthly fee that is intended to assist AT&T to recover expenses associated with Local Exchange Company (LEC) Primary Interexchange Carrier charge (PICC). Effective December 1, 2003, the rates for the Carrier Line Assessment were changed as follows. The CLC rates stayed the same.

Carrier Line Assessment

Carrier Line Assessment is a monthly recurring charge applied to All in One, Commercial Long Distance, Clear Advantage, Custom Net, Custom Net Option I - VI, Distributed Network Services, GICS, Oahu Telephone Service, Option S/Model T, ProWats Plan Q, Small Business Option, Simply Better, Simply Better Flex. The line status determination is based on available AT&T and/or LEC-provided information. The Carrier Line Assessment is subject to billing availability and will be applied per month, per interstate outbound switched line. Effective February 1, 2005, the Carrier Line Assessment will be as follows:

Carrier Line Charges

CLC is a monthly recurring charge applied to all outbound services, except those to which Carrier Line Assessment will apply. The line status determination is based on available AT&T and/or LEC-provided information. The Carrier Line Charge is subject to billing availability and will be applied per month, per interstate outbound switched line. Effective October 1, 2003, the Carrier Line Charge(2) will be as follows:

* Currently, AT&T waives the Carrier Line Charge associated with switched access LEC-provided PRI lines. This practice will continue indefinitely.

On June 27, 2004, a Carrier Line Charge Methodology Change was installed. Prior to June 27, 2004, Carrier Line Assessment was assessed on lines that were Presubscribed (PIC'ed) to AT&T. The new methodology, effective on customer bills June 24th for SBS and June 25th for Thrifty, is that the Carrier Line Assessment is assessed not only on PIC'ed or presubscribed lines, but if there is usage on the line. Therefore, Customers of AT&T interstate outbound LD services that rely on a Presubscribed line or which generate outbound usage will see Carrier Line Assessment on their bill. Lines that will continue to be excluded from the Carrier Line Assessment are disconnected lines, lines with a non-PIC surcharge, and calling card usage only. This Carrier Line Assessment change only impacts low-end customers billing via SBS and Thrifty billers.

Customers of AT&T interstate outbound LD services that rely on a Presubscribed line will see CLC on their bill.

State Carrier Line Charges

The Telecommunications Act of 1996 began a process of access reform and paved the way for the FCC to adopt an interstate Primary Interexchange Carrier Charge. The Primary Interexchange Carrier Charge is a monthly charge local companies can assess long distance companies. The charge is based on the number of phone lines subscribed to a long distance company, and is intended to help local companies recover costs associated with providing local exchange service. Per the FCC, the PICC is paid directly to local phone companies. As a result of this charge, AT&T assesses a Carrier Line Charge to its customer for each subscribed line represented on their account.

The Act also allows individual states to make provisions to generate funds to be contributed toward the expense of local service. Effective on or about October 25, 1999, several states will begin assessing Interexchange Carriers for their expense. In turn, you will begin seeing a STATE CARRIER LINE CHARGE. This charge will appear as a monthly charge in the Regulatory Fees section of your bill. It will be based, as is the Carrier Line Charge, on the number of subscribed lines represented on the account.

At present, the state carrier line charge will be effective only in the following states:

• Connecticut
• Indiana

The rate structure for the state carrier line charges is as follows:

STATE	Single-line	Multi-line	Centrex
Connecticut	$1.35	$1.35	$1.35
Indiana	$0.22	$1.93	$0.13
Wisconsin	$0.00	$0.78	$0.09

Note: State CLC Rates listed are applicable to, Business Long Distance, CustomNet, Model T, Simply Better, SBA+, AT&T Clear Advantage, AT&T Distributed Network Service, Option S, AIO, and ABN.

If you have additional questions, please contact Customer Care by calling the 800 number on your bill.