AT&T to offer no-contract iPhone 3G

Posted by Daniel East Jul 5, 2008 at 7:50am

AT&T won’t require a two-year commitment for the iPhone 3G—but that freedom comes with a hefty price hike for the handset, reports InfoWorld.

In the news release disclosing terms and monthly rates for iPhone 3G service plans, AT&T hinted at the upcoming offer without saying anything about when it will become available. Freedom will come with a price—$599 for an 8GB device and $699 for a 16GB—but this will mark the first time consumers in the United States are able to buy an iPhone without being tied down to a two-year contract.

The phone probably would still be locked for use only on AT&T’s network, said Jupiter Research analyst Michael Gartenberg. But buyers could choose a pay-as-you-go plan for voice service—there is no prepaid data plan from AT&T—or just use the device as a media player and calendar and access the Web via its Wi-Fi radio, similar to the iPod touch.

That makes for an expensive premium to pay over an iPod touch though. Would you be willing to pay $599.99/$699.99 for a contract-free iPhone?

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