I have a 2G iPhone ($499 plus 2-year contract) and like to upgrade to 3G, so we went to AT&T store looking for 3G iPhone. Surprisingly they told me that I am not eligible for 3G upgrade, instead we have to pay $399 for iphone 3G (8G) plus 2-year contract. $200 more! Then we asked AT&T if my wife could get a 3G iPhone since her phone is not a smartphone and only billed $9.99 for her phone service. Again they said NO. I was expecting that we will pay iphone rate for both iphones, by 2-year contract, AT&T would still make decent profit while resetting my 2-year contract, but they refused, they rather like us to stay where we are which my wife phone was charged $9.99 only for family plan. I really do not get it, what AT&T tried to do? They could make at least $70 monthly more if we are allowed to upgrade. That is $1700 in 2-year period of time. We also phoned AT&T, got same answer. The funny thing is that the representative tried to sell us a different phone (LG) over the phone. And he ordered that phone for us without our acknowledgment. That order got shipped when we got a confirmation email from AT&T and we told them that it is AT&T mistake. Dumb! Later AT&T called us for a survey for our visiting to their local store, we gave them everything lowest score. they deserved. Are they dumb or just too greedy? Anyone has similar experience with AT&T recently? I just hope there comes some healthy competition in the smart phone market. iPhone tied to only one carrier is problematic.