Exhibit 23.8
                         CONSENT OF INDEPENDENT AUDITORS

The Board of Directors
AT&T Canada Inc.:


We consent to the incorporation by reference in the registration statement on
Amendment No. 1 to Form S-4 of AT&T Corp. of our report dated February 1, 2002,
except as to note 2, which is as of March 14, 2002, as to note 5, which is as of
February 20, 2002 and as to note 9(h), which is as of May 1, 2002, relating to
the consolidated balance sheets of AT&T Canada Inc. ("the Company") as of
December 31, 2001 and 2000, and the related consolidated statements of
operations and deficit and cash flows for each of the years in the three-year
period ended December 31, 2001, which report appears as an exhibit in the annual
report on Form 10-K/A of AT&T Corp., and to the reference to our firm under the
heading "Experts" in the registration statement.


Our report dated February 1, 2002, except as to note 2,
which is as of March 14, 2002, as to note 5, which is as of February 20, 2002
and as to note 9(h), which is as of May 1, 2002, contains Comments by the
Auditors for U.S. Readers on Canada -- U.S. Reporting Differences which states
that in the United States, reporting standards for auditors require the addition
of an explanatory paragraph (following the opinion paragraph) when the financial
statements are affected by conditions and events that cast substantial doubt on
the Company's ability to continue as a going concern such as those described in
note 2 to the consolidated financial statements. Our report to the shareholders
is expressed in accordance with Canadian reporting standards, which do not
permit a reference to such conditions and events in the auditors' report when
these are adequately disclosed in the financial statements.

KPMG LLP


Toronto, Canada
September 24, 2002