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 (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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