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It is used to connect to car phone (if your car was made in the 70s, and you had this luxury), so that when the phone went, a signal is sent down this cable to mute the radio. I don't if you can get such things that detect a mobile signal and do the same. But I would personally find this annoying since its now illegal to talk about a phone near a car, never mind answering one in a car (uk laws).

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Q: What is the light blue wire on a new stereo labeled ATT used for?
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