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iPhone: loosen your tie, there's no contract

llitwinka
7/1/2008
llitwinka

On Tuesday, the Associated Press reported that phone company AT&T will be offering the new Apple iPhone without the ball and chain of a service contract.

The new iPhone is scheduled to debut in stores July 11th, and I’m happy to report that the cost of the device has been altered to make wallets happier. Two versions of the so-called iPhone 3G will be on sale - an 8-gigabyte for an eye-popping $199 and a 16-gig for $299. Those are the prices customers can expect to pay in the store if they purchase the mobile device with the two-year contract. If they opt out of the contract, however, the cost soars to $599 and $699 respectively.

AT&T, which is the exclusive service provider for the iPhone, is looking to profit off “monthly service fees over the life of the contract.”

AT&T spokesman Michael Coe commented that customers without the contract can skip out on the early termination fee if they decide to cancel their account. However, as with the current iPhone, the 3G operates on is “locked” platform with or without a contract which means it is confined to the AT&T network.

As far as package plans go, the AP maintains that they will be the same contract or no contract, but customers without one will be charged an extra $30 every month to cover “data like e-mail and Web surfing.”

For now, the most basic package includes 450 phone minutes, unlimited email and Web time, and is priced at $70 a month (not including taxes and other fees).

Although a prepaid plan for the first generation of iPhones was offered to customers who “failed a credit check,” a prepaid plan for the 3G is still pending.

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