Technology

AT&T stated this week that they would be releasing the 8 gigabyte iPhone for $599 and the 16 gigabyte iPhone for $699. These are steep prices for most of us - but that is because both of these phones can be obtained without a two year contract service and agreement. This option can be had for $400.

It could be worth the cost if you really dislike AT&T’s service and wanted to use the phone on another carrier. Unfortunately this option is not allowed. Both the iPhone 3G “contract” phones, which go on sale July 11 for $199 and $299, and the contract-free phones will work only on AT&T’s network.

AT&T’s early-termination fee is a maximum of $175 and, as of May 25, that fee is reduced by $5 for each month you own the phone. That’s a lot less than $400. Why would you do this? When I asked an AT&T spokesperson, she said it is an option for people who don’t want to sign a contract.