<PAGE> 1
Filed Pursuant to Rule 424 (b) (3)
Registration No. 33-49589
Pricing Supplement No. 18 Dated: June 5, 1995
(To Prospectus dated June 23, 1993 and Prospectus Supplement dated October 8,
1993)
AT&T Corp.
Medium-Term Notes, Series A
Due More than Nine Months From Date of Issue
Fixed Rate Note
Principal Amount: $25,437,000
CUSIP: 00206QAQ7
Agent: Dean Witter Reynolds Inc. acting as
Principal
Agent's Commission: .50% underwriting commission
Original Issue Date: July 5, 1995
Maturity Date: July 5, 2005
Issue Price: The agent has purchased the notes
as principal at 100% of the
principal amount for resale to
dealers and investors at varying
prices. See "Plan of Distribution"
below.
Specified Currency: U.S. Dollars
Note Form: Book-Entry
Interest Rate: From July 5, 1995 through July 4,
1996 6.250%.
From July 5, 1996 through July 4,
1997 6.450%.
From July 5, 1997 through July 4,
1998 6.650%.
From July 5, 1998 through July 4,
1999 6.850%.
From July 5, 1999 through July 4,
2000 7.050%.
From July 5, 2000 through July 4,
2001 7.250%.
From July 5, 2001 through July 4,
2002 7.500%.
From July 5, 2002 through July 4,
2003 7.750%.
From July 5, 2003 through July 4,
2004 8.000%.
From July 5, 2004 through July 4,
2005 8.500%.
<PAGE>
<PAGE> 2
Interest Payment Dates: Semiannually, on each July 5 and
January 5, commencing on January 5,
1996. If the Interest Payment Date
is not a New York Banking Day,
interest will be paid on the next
New York Banking Day.
Accrual of Interest: Interest accrues up to, but not
including, the next relevant
Interest Payment Date from, and
including, the next preceding
Interest Payment Date to which
interest has been paid (or from and
including the Original Issue Date
if no interest has been paid on the
Notes) unless the Notes (or any
portion thereof) have been called
for redemption as provided for
below.
Calculation Dates: N/A
Calculation Agent: N/A
Redemption: The Notes may be redeemed in whole
only prior to maturity at the
option of the Company.
Optional Redemption Dates: On each Interest Payment Date,
commencing on July 5, 1996
Optional Redemption Price: 100% of principal amount.
Annual Redemption Price Reduction: N/A
Repayment: The Notes cannot be repaid prior to
maturity at the option of the
holder.
Renewal: The Notes cannot be renewed by the
holder.
Extension: The Notes cannot be extended prior
to maturity.
Dual Currency Notes: The Company can not make payments
in an optional currency.
Original Issue Discount: This Note is not a Discount Note or
an Original Issue Discount Note.
Plan of Distribution
See "Issue" Price above. The Agent (acting as principal) has advised
the Company that it proposes to offer the Notes from time to time to
investors at variable prices determined at the time of sale, and to dealers
at variable prices determined at the time of sale, which may represent
selling concessions to such dealers, for resale by the dealers to investors
at varying prices determined by such dealers at the time of resale.
<PAGE>
<PAGE> 3
Taxation
The following discussion of the United States federal income tax
consequences of the ownership of the Notes supplements, and to the extent
inconsistent with replaces, the discussion under the caption "Taxation" in
the Prospectus Supplement dated October 8, 1993. Terms not defined herein
have the same meanings as in the Prospectus Supplement.
This discussion is based on regulations concerning the treatment of
debt instruments issued with original issue discount (the "OID Regulations")
and related provisions of the Code. The OID Regulations are effective for
Notes issued on or after April 4, 1994.
The Notes provide for interest payable semiannually at a fixed rate
that increases annually, commencing on July 5, 1996, and they are callable at
the option of the Company on any interest payment date, commencing on July 5,
1996, at 100% of their principal amount plus accrued and unpaid interest.
Under the OID Regulations, as under the Proposed OID Regulations, the issuer
of a debt instrument who has a call option will be presumed to exercise that
call option if the yield of the debt instrument, assuming the call option is
exercised, is lower than it would be if the call option were not exercised.
If the call option is presumed to be exercised but the debt instrument in
fact remains outstanding after the call date, the OID Regulations treat the
debt instrument as if it had in fact been called and a new debt instrument
were issued on such date for an amount equal to its adjusted issue price on
that date. This redemption and reissuance are solely for purposes of the OID
Regulations.
Because the interest rate on the Notes increases each year, commencing
on July 5, 1996, and because the Company has the right to call the Notes at
100% of their principal amount plus accrued and unpaid interest on each
interest payment date, commencing on July 5, 1996, the Company intends to
take the position that the call options exercisable on each interest payment
date on which the interest rate on the Notes is increased will be presumed to
be exercised. If the Company does not exercise a call option which is
presumed to be exercised, the Notes will be treated as redeemed and reissued
at 100% of their principal amount. As a result, the Notes will not bear
original issue discount and stated interest on the Notes will be taxable to a
United States Holder as ordinary income at the time that it is received or
accrued, depending on the United States Holder's method of accounting.
While the OID Regulations have amended many provisions of the Proposed
OID Regulations, such amendments are not relevant to the Notes.
