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AT&T targets landline cord cutters with $20 no-contract wireless home phone service

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Updated:  AT&T (NYSE: T) on Wednesday launched a $20 no-contract option to entice consumers to cut their wireline-based voice cord and switch to its Wireless Home Phone service.

The carrier is touting ease of use as one of the service's big features.

With the Wireless Home Phone service, a consumer can conduct calls from his or her existing phone using the telco's wireless network instead of a traditional wireline phone connection and keep their existing home phone number and handsets.The service is portable, so customers can take their home phone with them when they travel to other locations in the United States.

The telco said that a Wireless Home Phone customer can add their home phone line to an existing FamilyTalk plan for $9.99 a month. Customers have the option of picking an unlimited nationwide calling option for $19.99 per month, and the Wireless Home Phone device is free for those customers who are willing to sign a two-year contract.

Beginning this month, AT&T will offer other prepaid options for its Wireless Home Phone service, including $20 a month for unlimited calling, $15 per month for 1,000 minutes of international long-distance, voicemail, caller ID and call waiting.

While AT&T does not break out how many customers subscribe to the service since launching it last year, Judy Cavalieri, AT&T Mobility vice president of voice and prepaid products, said that they have "seen a very positive response from customers looking to save money and get more flexibility on their home phone service."

This new service option could draw both existing AT&T wireless and wireline customers and other consumers that are looking to save costs on their telecom spending patterns by eliminating their landline phone connections.

For AT&T, the introduction of flexible service options is representative of the trend that they need to find another way to offset ongoing landline voice losses. In Q4 2012, AT&T's traditional landline voice lines declined 10.8 percent year-over-year from 39 million to 34.7 million.  

Updated: We incorrectly listed the no-contract option at $10. The correct amount for no-contract Wireless Home Phone Service is $20.

For more:
- see the release

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