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AT&T's free call plan won't save it from cable

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At this point, Big Telecom will do almost anything to keep cable companies from taking more of their phone customers. The latest idea (subscription required) from AT&T Inc. (NYSE:T) is to let its cellphone customers call AT&T's 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, users 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 (NYSE:TWX) and Comcast (NASDAQ: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 is a partner at 24/7 Wall St.

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Last updated: November 25, 2009: 02:03 PM

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