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But even after the increase in local calling rates, most of AT&T's local calling plans will be cheaper than those of its competitors.
A plan starting at $25 a month includes unlimited local calling.
In this case, plan to have a contact that lives outside of your local calling area to call and update in case of an emergency.
Local calling plans at Verizon, by contrast, start at $35.95, though the company is offering promotions to entice customers who have switched carriers to return.
After the rate increase, AT&T will charge consumers in New York $22.95 for its cheapest stand-alone local calling plan that includes unlimited minutes.
Mr. Behrens and Mr. Burke say the big long-distance players -- AT&T, Sprint and WorldCom -- face fundamental problems as boundaries disappear between long-distance and local calling.
Highlighting a trend in the marketing of telephone calling plans, SBC Communications Inc. yesterday became the latest company to introduce a package that permits unlimited long-distance and local calling for a single price.
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SBC is in the process of merging with Pacific Telesis, another Bell; together they have more than 20% of America's local-calling market.
The expired rules, intended to foster competition in the $127 billion local-calling market, required the Bells to sell network access at below-market rates set by regulators.
The company, which had a $2 billion fourth-quarter loss, is trying to sell long-distance throughout the United States amid slowing growth in its local-calling business.
Although the local-calling market, at about $110 billion, is a bit bigger than the long-distance market (around $80 billion), margins there are typically half those of long-distance.
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