AT&T; Calling Plan Would Cut Interstate Bills
AT&T; Corp., embroiled in a fierce battle with rivals for customers, proposed a new calling plan Thursday that could reduce the average residential customer’s interstate bill by $4.50 a month, officials said.
The plan, which should be available beginning April 1, would require enrollment but no fee, said Joseph Nacchio, president of AT&T; Consumer Communications Service.
The average residential interstate bill is about $18 a month. A 25% discount through the plan would save customers $4.50, AT&T; spokesman John Skalko said.
In addition, AT&T; as early as this weekend plans to offer most of its 80 million residential customers a weekend of free calling. The promotion, which ends May 1, will let people make free calls to places they normally call on weekends, Nacchio said.
The plan comes as AT&T;, MCI and Sprint are locked in an advertising war over whose rates are lowest.
Last month, MCI and Sprint unveiled new plans to lure residential customers. Sprint had no immediate comment on AT&T;’s latest plan.
AT&T;’s proposed price changes were filed with the Federal Communications Commission.
Under the plan, known as AT&T; True Savings, people with bills of more than $10 a month would save 25% and people with bills of more than $50 would save 30%, Nacchio said.
MCI’s consumer markets president, Angela Dunlap, citing what she said is an identical plan introduced by MCI on Jan. 6, said, “This is AT&T; following MCI’s lead once again.”
Taken together, the free calling and the new plan will cost AT&T; about $650 million. But factoring in other planned rate increases, the net effect on the company’s revenue is “basically a wash,” Skalko said.
AT&T; stands to generate $420 million in rate increases for services including credit card calls, operator-assisted calls and directory assistance.
Rates for credit card calls are to increase by 6%, operator-assisted calls by 4% and directory assistance by 12%, Skalko said.
Early next week, AT&T; plans to file a plan with the FCC to increase prices 2.9% on certain services to business.
