March 27 (Bloomberg) -- AT&T Inc. will give mobile-phone subscribers free banking software with features including bill pay and fund transfers, encouraging them to spend more on Internet access plans.

The service is available for customers of BancorpSouth Inc., with Wachovia Corp., SunTrust Banks Inc. and Regions Financial Corp. becoming available later this year, San Antonio-based AT&T said today in a statement. Subscribers must buy Web access to use the software, designed by closely held Firethorn Holdings LLC.

AT&T, which is replacing the Cingular Wireless brand with its own name, added the banking feature to lure customers from rivals such as Sprint Nextel Corp. and to convince them to pay for Web access. Subscribers on average spent $7.19 a month in the fourth quarter on data such as access and text messaging, 53 percent more than a year earlier.

AT&T will introduce a separate service in 50 cities this summer that allows mobile subscribers to transmit live video to each other during phone calls, it also said today.

Firethorn, based in Atlanta, revealed its relationship with AT&T in November without disclosing financial terms. While AT&T hasn't authorized other mobile-banking software, companies such as Bank of America Corp. offer services through phone-accessible Web sites.

BancorpSouth operates 289 locations in the southern U.S. and has headquarters in Tupelo, Mississippi.

AT&T shares rose 13 cents to $39.44 at 4:01 p.m. in New York Stock Exchange composite trading. They have gained 10 percent this year.

To contact the reporter on this story: Crayton Harrison in Dallas at tharrison5@bloomberg.net.

Last Updated: March 27, 2007 16:25 EDT