EXHIBIT 12

AT&T INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Dollars in Millions
	Nine Months Ended
		September 30,						Year Ended December 31,
			2006			2005			2005			2004			2003			2002			2001
Income Before Income Taxes, Extraordinary Items
and Cumulative Effect of Accounting Changes*		$	6,728		$	4,344		$	5,267			6,623		$	7,751		$	8,685		$	9,984
Add:    Interest Expense			1,378			1,051			1,456			1,023			1,191			1,382			1,599
Dividends on Preferred Securities			2			26			31			24			22			24			57
1/3 Rental Expense			215			116			157			160			140			195			266
Adjusted Earnings		$	8,323		$	5,537		$	6,911			7,830		$	9,104		$	10,286		$	11,906
Total Interest Charges		$	1,430		$	1,075		$	1,492			1,054		$	1,228		$	1,440		$	1,718
Dividends on Preferred Securities			2			26			31			24			22			24			57
1/3 Rental Expense			215			116			157			160			140			195			266
Adjusted Fixed Charges		$	1,647		$	1,217		$	1,680			1,238		$	1,390		$	1,659		$	2,041
Ratio of Earnings to Fixed Charges			5.05			4.55			4.11			6.32			6.55			6.20			5.83

*All periods presented exclude undistributed earnings on investments accounted for under the equity method as well as “Income From Discontinued Operations, net of tax” in our Consolidated Statements of Income, which was from the sale of our interest in the directory advertising business in Illinois and northwest Indiana.