AT&T talks iPhone contract

Following the announcement of its price hike, AT&T on Monday said that all iPhone 3G handsets must be activated at the time of purchase in the retail store and that all first-generation phones purchased after May 27th will be eligible for a free upgrade to the 3G model. In an interview with Gizmodo the company said that Apple/AT&T would not allow home-based activation via iTunes, which Apple's CEO touted during the initial launch. AT&T's President of National Distribution Glenn Lurie told the publication that there would no in-home activation for iPhone 3G and that the new iPhone 3G must be activated in either an Apple or AT&T store.

The AT&T exec said that the would takes only "10-12 minutes" and that his company would provide more details regarding the sales procedures for the new iPhone sometime "in the next week or so;" however, he suggested that there may not be online sales of the iPhone 3G at launch and thus users may have to travel to retail store to purchase the new device.

In addition, Ars Technica says that consumers who purchased an original iPhone on or after May 27 will be eligible to upgrade the device to an iPhone 3G at no additional cost.

Further elaborating the details on contracts, the publication reports that AT&T will make all iPhone 3G buyers sign a new 2-year contract, effectively replacing their current contract. Some had speculated that AT&T may add an additional 2 years to existing contracts, but report said that buyers would start on a fresh new contract of 2-years from date of purchase, regardless of the term left on their contact. Existing customers will also be able to purchase the iPhone for $199, the report said.

by MacNN Staff