AT&T today launched voice service packages that substantially lower the cost of advanced services, more closely competing with cable and VoIP providers.

The three service packages offer up to 13 additional features such as three-way calling, call forwarding, call return, call blocker, call waiting, privacy manager, auto redial, Speed Calling 8, and call waiting ID. Caller ID and voice mail remain separate services, although AT&T lowered the cost of voice mail to $5 a month and will include its AT&T Unified Messaging service for $7 a month.

Many cable and VoIP providers include voice mail and Caller ID as free services.

All of the AT&T packages offer unlimited local calling, up to 13 free vertical features, and inside wire maintenance. The packages vary in the way they feature long-distance service with the cheapest ($32 per month) offering 10-cent-per-minute long-distance; the middle package ($40 per month) offering 120 minutes of long-distance and then charging 10 cents per minute and the top package ($50 per month) featuring unlimited long-distance.

AT&T is also still offering its All Distance Select package, rates for which start at $39.99 a month. It includes unlimited local calling and domestic long-distance, plus caller ID and a choice of two vertical features.

AT&T is billing the new plans as a simplified way for its customers to order voice services.