Item 8.01 Other Events.

On August 16, 2009, AT&T Inc. ("AT&T") announced that it had reached agreement with the International Brotherhood of Electrical Workers (IBEW) on a new, three-year contract covering approximately 8,900 employees (primarily in IBEW Local 21 (Illinois and Indiana)), subject to approval by these employees.

For the vast majority of employees, the new contract provides for a 3 percent base salary increase in years one and two, a wage increase in year three of 2.75 percent, and pension band increases of two percent for each year of the agreement. For both wages and pension band increases, there is a potential cost-of-living increase based on the consumer price index for the third year. The new contract also provides for continued health care coverage with reasonable cost sharing.

Most of the impact from this contract will be reflected in AT&T financial results beginning in 2010.

Information set forth in this report contains financial estimates and other forward-looking statements that are subject to risks and uncertainties and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this report based on new information or otherwise.

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