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                                                          Exhibit (10)(iii)(A)27

                                                               December 15, 2003

Mr. David Dorman

Dear Dave:

         This letter will confirm the recent approval by the Compensation and
Employee Benefits Committee of the AT&T Board of Directors (the "Committee") of
special allowances to be paid by AT&T (the "Company") in connection with your
assignment as Chief Executive Officer of AT&T based in Bedminster, New Jersey
and the requirement that you relocate to the New York/New Jersey area by
December 31, 2003.

SPECIAL TEMPORARY ALLOWANCE: To temporarily mitigate the cost to you of
maintaining two homes while you market your Atlanta home, the Company will
continue to provide to you a Special Temporary Allowance (STA) during the time
you own your current Atlanta home but ending the month before the month in which
the sale occurs and, in no event, later than July 1, 2004. The STA will be
increased to $12,000 (twelve thousand dollars) per month retroactive to
September 1, 2003, the effective date of the lease on your local residence. A
lump sum payment will be made to reflect the difference between the STA
previously paid since September 1, 2003 and this new STA. Going forward, this
payment will be made on a monthly basis concurrent with your regular monthly
paycheck. These payments will be grossed-up for federal and state taxes, since
such STA payments are considered taxable income. The payments will not be
included in your pay base for calculating any employee benefits.

OTHER RELOCATION PROVISIONS: Because of security considerations and other real
estate factors, it has been determined that the Atlanta home has not been in
posture for marketing within the 90 day period prescribed by the AT&T Management
Relocation Plan (the "Plan") for Company purchase of a home. In consideration of
those factors, the Company shall extend the provision for the Company to buy the
Executive's Atlanta home under the Plan until July 1, 2004 using the $2.975
million appraised value under the Plan.

In addition, should the Executive succeed in selling his Atlanta home on his own
before July 1, 2004, the Company shall provide a special payment as specified in
the Plan (the "Incentive") to the Executive in the amount of 1% (one percent) of
the selling price of the Atlanta home as documented on form HUD-1 (Settlement
Statement). The Incentive shall be paid to the Executive at the end of the month
following the month of sale. This payment is considered taxable income and will
be subject to Federal and state income taxes. No gross-up payment will be
provided and the payment will not be included in your pay base for calculating
any employee benefits.



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D. Dorman - Relo 12.03
Page 2

The STA payments with gross up, the Company purchase of the Executive's home
under the Plan and payment of the Incentive are all predicated upon your
continued employment with the Company at the time the payments are due

Please acknowledge your acceptance of the terms of this agreement by signing
below where indicated.

                                                   Sincerely,


                                                   /s/  Mirian M. Graddick-Weir

Acknowledged:


/s/  David Dorman

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David Dorman