But skipping the two-year plan will raise price of iPhone 3G by $400


By Peter Svensson
updated 14 minutes ago

NEW YORK - AT&T Inc. will sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan, a break from the rules set when Apple Inc.'s popular touch-screen gadget debuted last year.
Two new models of iPhones go on sale July 11 for $199 and $299, depending on the amount of memory, with two-year AT&T contracts. The contract-free versions will cost $599 and $699 and will be sold sometime "in the future," AT&T said.
The phones sold under contract are subsidized by AT&T, which expects to make the money back through monthly service fees over the life of the contract.
Without a contract, users can cancel service without incurring an early termination fee. But both contract and contract-free phones will be "locked" to work only on AT&T's network, and the monthly service plans available will be the same, said AT&T spokesman Michael Coe. The plans add a $30 monthly charge for data like e-mail and Web surfing on top of a calling plan.
As previously announced, the cheapest monthly calling plan for the iPhone will cost $70 per month, before taxes and fees that can add $10 per month. That plan includes 450 minutes of calls and unlimited e-mail and Web browsing.
AT&T is working on providing a prepaid plan, Coe said. A prepaid option was available to buyers of the first iPhone who failed a credit check.
The new iPhones will have faster data access and more accurate navigation capabilities. The cheaper model will have 8 gigabytes for internal memory, half that of the more expensive model.
The first version of the iPhone was sold in the U.S. without a contract, but AT&T would activate it only with a two-year contract. Many phones ended up being "unlocked" from AT&T's network and shipped overseas.
Also Tuesday, AT&T revealed that the iPhones will go on sale at 8 a.m. local time on July 11. Last year's iPhone launch, which happened in the evening, had Apple devotees camping outside stores in anticipation.

__________________
"C'mon lets race!" says EVDO.

"I can't I'm not available in your area." says HSDPA.

"What internet?" says EDGE.

Phones I've Owned On My Own Account:
Sidekick 3, LG VX10000, BlackBerry 8130

Phones I've Owned Prior To Starting My Own Account:
Nokia (CellularOne), Motorola T720, Samsung SCH-a670, LG VX8100, LG VX9800, Motorola Q, LG VX8550

Dang man, those contracts are just so expensive! I would consider getting one, but the monthly cost is just too much $$$$!

What's the point of getting a contract-free phone if you still have to stay with the same company anyway?

^I have no idea

This pricing plan is aimed DIRECTLY at the people who want to purchase it just to unlock and use it with another carrier, lol.

__________________
"C'mon lets race!" says EVDO.

"I can't I'm not available in your area." says HSDPA.

"What internet?" says EDGE.

Phones I've Owned On My Own Account:
Sidekick 3, LG VX10000, BlackBerry 8130

Phones I've Owned Prior To Starting My Own Account:
Nokia (CellularOne), Motorola T720, Samsung SCH-a670, LG VX8100, LG VX9800, Motorola Q, LG VX8550

I *might* want one, but I have no use for an additional phone line JUST to have the phone.

Wirelessly posted (BlackBerry8330/4.3.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/105)

That's the EXACT same way I feel about it, but it's just something about this phone that is giving me the urge to buy it and unlock it lol.

__________________
"C'mon lets race!" says EVDO.

"I can't I'm not available in your area." says HSDPA.

"What internet?" says EDGE.

Phones I've Owned On My Own Account:
Sidekick 3, LG VX10000, BlackBerry 8130

Phones I've Owned Prior To Starting My Own Account:
Nokia (CellularOne), Motorola T720, Samsung SCH-a670, LG VX8100, LG VX9800, Motorola Q, LG VX8550