Thread source, confirmed by bloggers contacting AT&T: http://discussions.apple.com/thread.jspa?messageID=4858903#4858903 This is outrageous, and explains why Wifi will not function when out of cellular coverage areas. Although probably not a regular occurance to send messages this large, if Apple updates iPhone firmware to support file browsing (and we wanted to send decent sized attachments, which I do regularly), we'll be charged up the @ss to use such functionality. This, coupled with other unfortunate shortcomings of the iPhone (and my inability for the device to properly interface with any of my POP email servers) has driven me to return the iPhone. It's a shame, I don't want to return it, I love it! However there are too many small things which are giving me buyers remorse. Here's to hoping the next iPod will be an iPhone (sans phone) - because the non-phone/email functionality of the device is rockin'.