AT&T is giving tough competition to local phone companies. AT&T is planning to tie up its publicized Internet phone service, CallVantage with its mobile phone service for three months on trail basis and provide this service at 14 AT&T wireless stores in Portland, Ore, and central New Jersey.

The company will provide the discount package on store kiosks and direct mail and online ads. AT&T Wireless users can add the CallVantage service for $19.99 monthly. If this trial goes well, the company will provide this service outside Southern US local regions.

After acquiring BellSouth, AT&T gave the company sole control of Cingular Wireless, which allows it to easily target customers in its Cingular stores. AT&T has potential to roll out this service and take the place of Verizon in New Jersey and Qwest and Verizon in Portland.

AT&T’s VoIP service will allow customers to make inexpensive phone calls while traveling through internet. Currently AT&T and Verizon, both are offering this service in their regions.

Stephan Beckert, analyst of TeleGeography said

AT&T is worried that the VoIP service would cannibalize sales of its more profitable land-line phone service in the Midwest.

While analyst of Yankee Group, Berge Ayvazian, said

AT&T can shake up the market by leveraging its fabled brand while using the package to cut monthly turnover of both wireless and CallVantage subscribers.

Image Credit: TMC

Via: USA Today