AT&T today unveiled what it’s calling the largest calling community in the U.S., offering free unlimited domestic calling to 100 million of its wireless and wireline subscribers nationwide. The plan is the first salvo in AT&T’s approach to competition following its merger with BellSouth, and the consolidation of the ownership of Cingular Wireless.

The new service requires customers to sign up for one of several different unlimited service residential or small business plans and to subscribe to Cingular, soon to be wireless from AT&T.

This approach to selling phone service to both new and existing customers could give AT&T a better competitive position against cable companies, who are siphoning off voice customers using cheaper VoIP services. By offering free calls in-network, AT&T echoes one of the more successful marketing strategies of its former long-distance rival, MCI, with its Friends and Family plan.

The service takes advantage of AT&T’s expanded local footprint which now includes 22 of the 50 U.S. states. AT&T Unity customers can call or accept calls from any AT&T wireless and wireline phone numbers across the U.S. at no charge, including no wireline usage fees in states with local measured service and no use of wireless “Anytime” minutes.

“This will help AT&T compete with the cable telephone companies,” said Jeffrey Kagan, telecom analyst. “Over the last few years the cable companies have won lines from the phone companies. The phone companies are creating their own competitive bundles. This offer will help AT&T because it does something that the cable companies cannot do. It bundles wireline and wireless services together. It gives them another weapon in the battle [against cable].”

The AT&T Unity plan is available to new and existing AT&T residential and small business customers, who subscribe to both AT&T unlimited local and long distance calling plans, on a combined bill, and sign up for AT&T’s wireless service. For calling outside the AT&T customer base, however, consumers and small businesses must choose from a range of service plans based upon the number of anytime minutes required from $59.99 a month for 900 minutes a month to $199.99 for 6000 minutes per month of out-of-network calling. Those totals include long-distance, roaming, voice mail, call forwarding, three-way calling and Caller ID.

There are separate pricing plans for what AT&T calls FamilyTalk, which includes two lines. Shared anytime minutes under that plan start at 700 for $69.99 and go up to $299.99 for 6000 minutes.

“The AT&T Unity plan is the ideal way to introduce our customers to the real power of combining wireless and wireline services into an appealing offering that delivers value, flexibility and convenience,” said Edward Whitacre, chairman and CEO of AT&T, in a prepared statement.

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