as long as you are in your home area, ie whatever area code you have with your number, then calls should be free with that plan, regardless of whether or not the calls are coming from within your city. i have that same plan and i'm currently living in toronto because i attend school here, but when i get calls from montreal (my home town) i don't get charged. only the people calling me are paying for long distance.
i'm not exactly sure if this would change if the calls originate from another country, but i don't see why it would.
hope this helps!