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Many iPhone 3G owners that didn't get to upgrade to the iPhone 3G S at the lower price of $199/$299 have been complaining a lot about this issue. AT&T announced today that they will be extending the range of customers that will be eligible for the upgrade pricing on the iPhone 3G S. This will allow customers that was only eligible to upgrade in July, August or September to be qualified for upgrading prices on the day of launch. The iPhone 3G S will be available for $199 for the 16GB model and $299 for the 32GB model which will save customers a total of $200 the purchase.

Importantly, we want our customers to better understand our wireless device upgrade program. Like most U.S. carriers, we offer a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

We also currently offer early upgrade pricing only for iPhone 3G S and iPhone 3G.

All of that said, we've been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we're extending the window of upgrade eligibility for a limited time.

We're now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.



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