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at&t letter

Daniel E. Sommers
President & CEO
AT&T Broadband
P.O. Box 5630
Denver, CO 80217-5630

August 3, 2000

Dear Lynn Langmade:

I appreciate hearing your concerns about programming content and prospective AT&T Broadband distribution of The Hot Network, and I value your point of view.

We're upgrading our Broadband systems in response to customer demand for more choice and better value in cable service. As our channel capacity increases, we plan to offer a variety of channels that appeal to many different consumer preferences. Our customers tell us that in addition to more choice, they want better control over the services and information that flow into their homes. Fortunately, we can provide that control through features available in our advanced technology.

We think this combination of choice and control is the most appropriate method of distributing an adult pay-per-view channel such as The Hot Network. AT&T Broadband will make the channel available only where there is customer demand for it, and only to customers who subscribe to our Digital Cable Service. (We'll modify any broadband systems we acquire to conform to our policy.) The service has easy-to-use controls that enable parents and family members to block any channel they consider undesirable. As has been our practice for many years, we'll completely block access to the channel, at no charge, upon customer request. Therefore, this service is available only to those customers who seek it out, individually order it, pay a fee for it, and choose to watch it in the privacy of their homes.

The Hot Network is offered by many of our competitors and other cable companies, including General Motors' DirecTV national satellite service, Cox Communications, Comcast Corporation, Cablevision Systems, Charter Communications, MediaOne, Insight Communications, and video services operated by telephone companies such as GTE, SNET, and U S WEST. The Dish Network, owned by Echo Star, offers similar and even more explicit programming services.

At AT&T Broadband, we're pleased to offer a wide array of popular programming that includes news, sports, information, movies, children's programming, locally-produced programs, and family entertainment. We survey many of our customers regularly to determine their requirements and tastes.

I hope this explanation helps you better understand our actions. We appreciate your business and hope you will continue to choose AT&T as a company that respects our customers and works hard to meet their needs.

Sincerely,

[signed]

Daniel E. Somers

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