Will AT&T subsidize the 3G iPhone?

Fortune is reporting that AT&T is planning to this time subsidize the 3G version of the Apple iPhone, knocking off the price by $200. By offering the phone at a cheaper price, AT&T reportedly plans to put the squeeze on rivals Verizon and Sprint by putting the popular device within reach of more subscribers who have spending limits.

Apple is expected to announce two versions of the 3G iPhone, according to the report: an 8GB iPhone for $399 and a 16GB iPhone for $499. Since iPhone users have proven to be heavy data users, it follows that recouping the subsidy wouldn't take too long for AT&T.

For more on the 3G iPhone report:
- read this article from Fortune

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