Yeah, but there was the concept of intraLATA toll calls. Or "local-toll" calls. These weren't long-distance, but they weren't free, either.

I remember calling my grandparents in Arizona cost 5¢ a minute, but calling relatives in the next city over—about 10 miles away—cost something crazy like 29¢ a minute.

This was in California. I'm sure the rate structures varied from state to state.