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NEW YORK -- AT&T Inc. will sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan, a break from the rules set when Apple Inc.'s popular touch-screen gadget debuted last year.

 

Two new models of iPhones go on sale July 11 for $199 and $299, depending on the amount of memory, with two-year AT&T contracts. The no-contract versions will cost $599 and $699 and will be sold sometime "in the future," AT&T said.

 

Buyers would then go month-to-month on AT&T's service. AT&T said the no-contract phones would be "locked" to work only on AT&T's network, as the contract-laden phones will be.

 

The new iPhones will have faster data access and more accurate navigation capabilities. The cheaper model will have 8 gigabytes for internal memory, half that of the more expensive model.

 

I'm not sure what the benefit of this is, you're still paying $400.00 more for a service that you're not getting :wacko:

I know a few people that want a PAYG option for the iPhone. Not sure why myself. But what I don't know if the PAYG version gives access to The Cloud in the UK or it's counterpart in the US (if you guys have anything) or give unlimited Data usage.

It's supposed to work the same as a iPhone with a contract. If it cost less I might take the bait, but there's no way I'm paying AT&T just for the privilage of using the iPhone. Lots of other phones on the market. I'll get a iPod Touch instead with that $400.00 :lol:

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