UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
                         PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                         Date of Report: October 5, 2005


                                   AT&T CORP.
               (Exact Name of Registrant as Specified in Charter)

                                    New York

                 (State or Other Jurisdiction of Incorporation)

                                1-1105 13-4924710
           (Commission File Number) (IRS Employer Identification No.)


                        One AT&T Way
                    Bedminster, New Jersey            07921
               (Address of Principal Executive      (Zip Code)
                Offices)


       Registrant's telephone number, including area code: (908) 221-2000

                                 Not Applicable

          (Former Name or Former Address, If Changed Since Last Report)


Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (See General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ]  Soliciting  material  pursuant to Rule 14a-12  under  Exchange  Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))


Item 1.01. Entry into a Material Definitive Agreement

     On October 5, 2005, AT&T Corp. ("AT&T") entered into a $500 million 364-Day
Revolving Credit Facility  Agreement (the "Agreement") with a group of financial
institutions,  including J.P. Morgan  Securities Inc.,  Citigroup Global Markets
Inc.  and Banc of America  Securities  LLC,  as Joint Lead  Arrangers  and Joint
Bookrunners.  A copy of the  Agreement  is  attached to this Form 8-K as Exhibit
10(i)(38).  The  Agreement  replaces  the $1 billion  364-Day  Revolving  Credit
Facility  Agreement  dated  as of  October  6,  2004  among  AT&T and a group of
financial institutions.

Item 9.01.  Financial Statements and Exhibits

     The following exhibit is filed as part of this Report:

(c) Exhibits

Exhibit No.     Description

10(i)38         364-Day Revolving Credit Facility Agreement among AT&T Corp. and
                a   group  of  financial  institutions,  including   J.P. Morgan
                Securities  Inc.,  Citigroup  Global  Markets  Inc. and  Banc of
                America  Securities  LLC,  as  Joint  Lead  Arrangers  and Joint
                Bookrunners.




                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                  AT&T CORP.




                                  /s/   Robert S. Feit
                                  ----------------------------------
                                  By:   Robert S. Feit
                                        Vice President - Law and Secretary

October 6, 2005


EXHIBIT INDEX

Exhibit No.                Description

10(i)38         364-Day Revolving Credit Facility Agreement among AT&T Corp. and
                a   group  of  financial  institutions,  including   J.P. Morgan
                Securities  Inc.,  Citigroup  Global  Markets  Inc. and  Banc of
                America  Securities  LLC,  as  Joint  Lead  Arrangers  and Joint
                Bookrunners.