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AT&T will sell the iPhone 3G without a contract for $599 (8GB) or $699 (16GB). The original iPhone was sold exclusively with a two-year agreement.

The $199 (8GB) and $299 (16GB) pricing announced during the iPhone 3G’s introduction will be available to the following customers:

  • iPhone customers who purchased before July 11
  • Customers activating a new line with AT&T
  • Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

AT&T customers who are not currently eligible for an upgrade discount — those who didn’t purchase an original iPhone and aren’t otherwise eligible — can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement.

Plan pricing, with unlimited data, use is as follows:

  • Unlimited anytime minutes for $130 per month;
  • 1350 anytime minutes and unlimited nights and weekend for $110 per month;
  • 900 anytime minutes with unlimited nights and weekends for $90 per month;
  • 450 minutes with 5,000 nights and weekend minutes for $70 per month.

Messaging can be added to any plan for $20 (unlimited messaging), $15 (1,500 messages) or $5 (200 messages).

Current AT&T customers who are upgrading to iPhone 3G will pay an $18 upgrade fee and new AT&T customers will pay the standard $36 activation fee. Customers can check their eligibility to upgrade here.

The 3G iPhone will likely combine WiFi/Cellular triangulation from Skyhook Wireless combined with GPS chips from Sirf. CSR and Skyhook also recently announced a partnership that will bring advanced location capabilities to CSR’s Wi-Fi silicon.

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