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AT&T to Simplify Plan for Wireless, Standard Calls (Update2)

By Crayton Harrison

May 24 (Bloomberg) -- AT&T Inc. will simplify a subscription plan that offers free calls between wireless and standard telephones after the company had trouble selling the service.

The plan, called Unity, had too many requirements, making it hard for customers to determine how much money they would save, said Rick Welday, chief marketing officer for AT&T's consumer business, in an interview.

``It proved to be too much too fast for wireless reps to get their heads around,'' he said. ``It should be the default sale.''

AT&T, the biggest U.S. phone company, began selling Unity three weeks after its December purchase of BellSouth Corp. That acquisition gave it full control of Cingular Wireless, which is adopting the AT&T name. The San Antonio-based company found that customers who have wireless and home-phone service from AT&T are less likely to switch to other providers, Welday said.

The original version of Unity required home-phone users to get an unlimited local and long-distance plan and to sign up for a wireless plan of at least $59.95 a month. Unlike other AT&T mobile-phone subscriptions, Unity didn't allow customers to roll over unused minutes to the next month.

The rollover restriction and the long-distance requirement made Unity a tougher sell than it should have been, Welday said. AT&T will unveil a new version of Unity in the next 60 days, he said. He declined to disclose details of the new plan.

The company is considering other services it could include in Unity offers, such as high-speed Internet access. AT&T's sales representatives aren't trying to sell the current form of Unity, though customers may still request it, Welday said.

AT&T spokesman Michael Coe said plans for the new Unity aren't final and the timing could change.

IPhone Plan

The company wants to introduce its retooled Unity service to coincide with the debut of Apple Inc.'s iPhone in June, he said. AT&T can promote Unity to a wider audience because more customers are visiting stores to see the gadget, a combination of the best- selling iPod music player and a mobile phone, he said.

AT&T declined to disclose how many Unity customers it has or how many home-phone customers also subscribe to its wireless service. The company has 36.7 million total residential land lines and 62.2 million mobile-phone customers.

Shares of AT&T rose 1 cent to $40.42 at 4 p.m. in New York Stock Exchange composite trading. The stock has risen 13 percent this year.

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

Last Updated: May 24, 2007 16:11 EDT