Telecom & Wireless

AT&T's Free Call Plan Won't Save It From Cable

At this point, Big Telecom will do almost anything to keep cable companies from taking more of their phone customers. The latest idea from AT&T is to let its cellphone customers call AT&T (T) land line phones for free.

The plan is complicated, which means most customer will not be able to figure it out. For starters, the user has to have a 900 minute a month cellphone plan. And, they have to have AT&T’s unlimited long distance plan as well. It appears that the two programs cost about $100 a month when taken together.

Cable-based VoIP phones from companies like Time Warner Cable (TWX) and Comcast (CMCSA) have monthly plans for $20 to $30, so its is hard to see why the AT&T plan is attractive.

Maybe it is a sign that AT&T is having a hard time keeping customers.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.

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