AT&T; Move Aimed at Luring Customers : Telecommunications: Long-distance carrier seeks to raise residential rates, but it also offers new discount plan.

American Telephone & Telegraph Co., seeking to increase its share of the long-distance market, Tuesday announced a major nationwide rate increase for residential phone service, then immediately introduced an unrestricted discount plan for people who make more than $10 in calls a month.

AT&T; said it would raise basic long-distance rates next month by an average of 6.3%, more than twice the current rate of inflation.

Company spokesman Herb Linnen said the increase would bring in an additional $750 million, which would cover the cost of the new discount plan and thus be “revenue neutral” for the company.

The move reflects the battle for customers among the nation’s long-distance phone carriers. AT&T; has been losing market share to Washington-based MCI Communications Corp. and other competitors over the past few years and recently scrubbed a savings program called the “i” Plan after it failed to draw new customers.

AT&T; hopes its newest plan--and others like a “frequent caller” plan it started last week--will induce customers of MCI and Sprint Corp. to drop those companies and sign up with it.

Though AT&T; still serves a significant majority of residential customers, its market share has dropped below 60% recently, from 74% five years ago, according to private estimates. AT&T; does not give out market share numbers; MCI says it has 19% of the long-distance market, and Sprint says it has 10%.

AT&T;’s new rates and discount plan would go into effect Jan. 10 if approved by the Federal Communications Commission.

Besides increasing basic rates, AT&T; plans to boost the cost for collect calls and operator-assisted calls from $2.05 to $2.12 and for calls billed to third parties from $2.11 to $2.18. AT&T; would also raise the cost of overseas calls by 3.35% to just less than 7%.

The savings plan, to be called AT&T; True USA Savings, would give a 10% discount to customers who spend between $10 and $25 a month and a 20% discount to those who spend more than $25 a month. To get the discounts, AT&T; customers must sign up for the plan.

Joseph P. Nacchio, president of AT&T;’s consumer long-distance business, said the company’s new discount program gives customers “true savings they can understand.” Customers who use the new service, he said, “don’t have to worry about who they’re calling or any other limitations.”

Angela Dunlap, president of consumer markets for MCI, said Tuesday that MCI has no plans to try to match the new AT&T; program.

Dunlap cautioned long-distance callers to “be careful” before signing up with AT&T.; MCI customers already get savings equal to the new AT&T; plan, she said. “We save them money the moment they become a customer; we don’t ask them to work (join a plan) to save money.”

Jerry Rhodes, vice president of the consumer services group for Sprint, said his company has no plans to match the AT&T; program. “We still believe we have the best calling plan in the market,” he said.