The telecom giant will launch the service today in the Nashville area to neighborhoods that have access to its digital TV service, U-verse. The service is available only to people who also buy AT&T's TV service.
AT&T had promised the state it would invest $400 million in its next-generation technology as part of a deal to get TV legislation passed here last year, essentially installing fiber optic lines throughout neighborhoods, which allows AT&T to sell TV and digital phone service in addition to high-speed Internet.
Under the state law, AT&T has roughly two more years to provide 30 percent of its territory with U-verse services. The company won't divulge which neighborhoods have access, citing competitive reasons. However, customers can go to uverse.att.com to check if the service is available for their address.
U-verse voice costs $30 a month for unlimited phone calls and $25 a month for 250 minutes.
The service will give AT&T one leg up on the cable companies because AT&T can now connect all its platforms, including its wireless phone service, with all the other products its offers, according to Larry Hettick, a researcher with Current Analysis in Sterling, Va.
"It's more advanced in what it can do than what's on the market today," Hettick said.
For instance, customers will be able to check their AT&T cell phone and home phone voice messages from a computer or phone. They'll also see who's calling on their computer or TV screens and click on the screen to start making a call.
Comcast's packageComcast has been offering a digital phone service via a broadband Internet connection in the Nashville area for the past three years and is now the third-largest residential phone service provider in the nation, behind AT&T and Verizon, with 7 million phone customers nationwide.
Comcast sells its unlimited digital phone service for $44.95 a month, but offers it for $39.95 a month when bundled with another service such as TV or high-speed Internet. Both services have 911 capabilities and backup power, but it's recommended that customers have a backup phone, just in case.
One drawback to Internet-based phone services, including AT&T's new voice service, is that losing an Internet connection also takes down the phone service.
Hal Stephens, a Franklin father of two, said he would consider buying the digital phone service, but he likes to have a traditional phone line in case his children are at home alone.
He switched from DirecTV satellite last year when AT&T began offering TV service to his Franklin neighborhood.
"On the whole, it's better, mainly because of the digital video recorder,'' Stephens said. "I can watch what I record on any TV in the house. If the kids want to watch what they recorded, then I can go up to my bedroom and watch what I want."
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