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                                                                      Exhibit 12
                                                                     Form 10-Q
                                                                  For the Three
                                                                   Months Ended
                                                                  March 31, 2001

AT&T's losses for the three months ended March 31, 2001 were inadequate to cover
fixed charges, dividend requirements on subsidiary preferred stock and interest
on trust preferred securities in the amount of $0.9 billion. This deficiency was
primarily due to the $1.0 billion charge taken for the net revaluation of
trading securities in connection with our adoption of SFAS 133 and net
restructuring and other charges of $808 million.