I have a first generation iPhone with an AT&T plan. Would I be able to use it other countries like India and U.K. I do not mind if I need to call AT&T to set up some kind of plan but I do not want the calls to be expensive but close to the in country rates. Thanks.
You will not get anything close to the "in-country" rates.
In India, AT&T's roaming partners will provide you with a rate of anywhere between $2.29 and $2.49 per minute.
In the UK, AT&T's roaming partners will provide you with a rate of anywhere between $0.99 and $1.29 per minute.
Your monthly minute allowance is not applied towards any international roaming talk time.
You might (but I don't know for sure) also be charged long distance on top of the roaming rates, to place calls back home to the USA or to call locations outside the local calling area within the country you're visiting.
In both the UK and India, you'll get the lowest available roaming rates if you enroll in the AT&T World Traveler add-on package, which will cost you a baseline of $5.99 per month. If you don't enroll in the World Traveler package, then you won't have any additional baseline per-month fees, but the higher roaming rates will apply.
You simply don't want to allow for the possibility of accessing any roaming data while you're traveling internationally, because at a rate of $0.0195 per kilobyte, the expenses will quickly rack up.