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AT&T is planning to cut the price of Apple’s new iPhone to $199, say a variety of news reports. According to Fortune:

AT&T is preparing to subsidize $200 of the cost of a new iPhone, bringing the price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with price tags widely expected to be $399 and $499.

AT&T and Apple declined to comment.

At $200, the iPhone would be within reach of a much wider consumer market and give AT&T a strong magnet to pull lucrative customers away from rivals like Verizon Wireless, Sprint and T-Mobile. The $200 rebate or subsidy would be limited to AT&T customers and not available through Apple’s stores. The new iPhone sold by AT&T will likely be locked or programmed so buyers can’t take the cheaper iPhone to another phone service.

In other news, the Associated Press has signed a deal with mobile video vendor Transpera to power the AP’s Mobile News Network.

Transpera will be used for the AP’s Mobile News Network, scheduled to launch later this quarter, the first product of the AP’s Digital Cooperative, a program from AP members designed to find ways to distribute news over new-media platforms.

In addition to providing technology for video delivery, Transpera will help advertisers reach mobile users through banner, pre-roll and post-roll ads. Cellular provider Alltel has uses Transpera for their Social Video service, which is available for $3 per month. It allows subscribers to access, rate and share videos from popular Web destinations such as Break.com, AtomFilms and GrindTV.com.

YouTube is also extending their offerings to wireless. Other user-generated mobile video startups including Mywaves, Eyespot, 4thMedia, Mojungle and Zannel.

Inexpensive Wifi devices (like the iPhone), just might bring municipal wireless networks back from the dead — they’re used outdoors, they’re mobile, they’re Wi-Fi enabled. What’s not to like?

iPhones are already a huge factor in most municipal wireless networks. MIDs and UMPCs, arriving later this year, will add fuel to the fire. Perhaps municipal WiFi was just a little ahead of its time.

This development is going to be fun to watch. You unlock this door with the key of imagination.

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