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Both people are American with a US plan. The person in England is there on travel and has a business phone.
I thought that ATT to ATT was no charge
That is only for domestic use. AT&T has to pay the foreign carrier to allow the use of roaming on their network. They aren't going to give you that service for free. The savings would be ridiculous, if you could make international roaming calls for free to other AT&T customers!
The UK has some of the best prepaid phone offers on the globe. If your friend is not using an iPhone, get the unlock code for the phone from ATT and get a local prepaid SIM for your visits over there. Some of the plans out there have silly cheap rates to the US. For example, Three has a deal with Skype and all of your non-UK calls can go out via Skype. I bought an a month's worth of unlimited talk time to the US for $2.99 with Skype, got a Three SIM for 1 pound, and made more calls to the US than I was in the US. (You need a phone compatible with Three's implementation of Skype for this to work). You can also pay Skype a few dollars to spoof your US phone number in the caller-id and using a very simple computer trick, can have a US phone number give you free incoming on your Three phone.
If you are not into this, look at Lebarra http://www.lebara.co.uk/. You can call the US for 5p a minute and the SIM card is free.
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