Just talked to AT&T Data Support Chat. After hearing the local AT&T rep talk about the $599 - $699 iPhone price, I talked to AT&T. They said that no matter if you're eligible for an upgrade, a new customer, or even not eligible for an upgrade you pay $499 or $599. Hope this clears things up. Oh, sorry, I forgot to add that I was told that when upgrading I'd have to pay $100 more than a new customer, which is not the case.