Joan Marsh 1120 20th Street NW Director, Federal Government Affairs Suite 1000 Washington DC 20036 202/457-3120 FAX 202/263-2716 April 12, 2000 Ms. Royce Dickens Cable Services Bureau Federal Communications Commission 445 12th Street, SW Washington, DC 20554 Re: In the Matter of Applications for Transfer of Control to AT&T Corp. ("AT&T") of Licenses and Authorizations Held by MediaOne Group, Inc. ("MediaOne") CSB Docket No. 99-251 Dear Ms. Dickens: At the Cable Services Bureau's request, this letter explains further the cable telephony penetration chart that was included in AT&T's letter to Deborah Lathen, dated February 22, 2000, which letter was supplemented by AT&T's letter to you dated March 29, 2000. This letter specifically explains the 1% per month AT&T penetration rate referenced in both the February 22nd and March 29th letters. In those areas where AT&T has been actively marketing cable telephony on a commercial basis, it has achieved a penetration rate against cable telephony market ready homes of at least 1% per month. Thus, in the San Francisco Bay Area (Fremont and the Tri-Valley area), Chicago area (six communities), Dallas area (5 communities), Denver area (five communities), Pittsburgh area (2 communities), Salt Lake City area (one community), and Seattle area (one community), AT&T achieved at least 1% penetration of cable telephony market ready homes per month for every month it has actively marketed the service and has continued to achieve such penetration rates through March 31, 2000. The significance of AT&T's market success is demonstrated by the fact that AT&T only launched its commercial roll-out of cable telephony in October, 1999, with the bulk of its roll-out to date occurring in the first three months of this year, yet AT&T has almost surpassed the penetration rate MediaOne has been able to achieve in over two years. I believe the above provides the information you requested. Please contact me if you have any questions. Sincerely, Joan Marsh cc: Q. Truong L. Senecal This explanation also applies to the confidential version of the chart, which was filed under seal pursuant to the protective order (Bates No. AT&T 002555).