We have dramatically ramped our growth in video services. AT&T Advanced TV services, such as AT&T U-verse TV, AT&T | DISH Network and DIRECTV^® service, present customers with a new and superior TV choice that offers better control and richer content than cable with more High Definition (HD) channels in nearly every market we serve.

Delivered through our fiber-rich IP network, U-verse service offers television, broadband and voice over a single connection, along with unique features and unmatched flexibility.

Satellite TV service from DISH Network and DIRECTV is available in markets where we offer wired voice and broadband, giving customers the ability to include television service as part of an AT&T bundle.

It doesn't take U-verse TV customers long to experience the IP difference. For example, when they want to set a recording on their DVR, they no longer have to be in front of the television. They can access their channel guides and set recordings from any Web connection — including on a mobile device — no matter where they are. In 2007, we launched exclusive new features such as U-bar, which brings Internet content such as sports, traffic and weather information to the TV screen, and YELLOWPAGES.COM TV, which gives U-verse TV customers the power to search for local business information from their TV. More integrated features are on the way in 2008.

Customers clearly like what they see: As 2007 drew to a close, we had 231,000 AT&T U-verse video subscribers in service. And we expect to top 1 million U-verse subscribers by the end of 2008.