Source: http://www.mciarlo.com/2008/06/iphone-3g-att-voice-data-plans/ So, there's all this talk about being upgrade eligible, and I thought this would be helpful in giving people more definitive answers. I won't copy and paste the whole article, but here is a summary from the top. Summary of Key Points * You may buy the iPhone 3G for $199/$299 (subsidized) as a new subscriber or as a first generation iPhone customer. You may be eligible for subsidy pricing if you are in good standing as a current subscriber. * Current AT&T customers not eligible for upgrade pricing will be made eligible at the launch of the iPhone 3G (this makes sense because subscribers who skipped the last iPhone, or those who purchased plans last year would otherwise need to wait, eliminating a large sector of potential buyers; the phone has only been available for 12 months, less than the length of the average contract.) This is my own personal guess, but good standing and good credit might apply. * If you receive the iPhone at the subsidized price and cancel your plan within 30 days, you get your money back, but must return the phone. If you cancel your plan after 30 days, you get to keep the phone, but must pay the Early Termination Fee (ETF). * You may use your iPhone on another plan once canceled after 30 days, but the full features of the phone might be unavailable. Plans might be more affordable than previously thought. I know this information if floating around, but the answers received from this candid AT&T representative seemed to cut through the misconception.