AT&T to offer unlocked iPhone 3G without contract


Finally its happening!

Since the launch of first gen iPhone on AT&T network, we were all waiting for this to happen. March 26th will mark the arrival of unlocked no-contract iPhone 3G in US market.
Yes, if the leaks are supposed to be believed, AT&T will offer unlocked iPhone 3G, without any contract obligations. You just need to be an existing AT&T customer, and can purchase the iPhone with no in-store activation required.

The price is 599/699 dollars for 8/16 GB respectively. This is much more than the current contractual price, but gives its customers an option of selecting their best usage plan, unlike the iPhone pre-definced plans.
Also, the price is relatively cheaper than the unlocked iPhone available in Hong Kong and Italy.

After the announcement of OS 3.0, which brings loads of features (still some essential ones like video recording missing), this seems to be hinting a new dimension in Apple and iPhone strategy. After gaining leaps and bounds in the Smartphone market, seems they are ready to bring in yet more deals to love this instrument.

Update : The new phones will still be “locked” to AT&T and won’t work with any other cellular carrier unless they’re modified. AT&T will only activate them on the regular iPhone plans, which include a $30 monthly charge for data access. Prepaid service will not be available.