I sent a letter to at&t asking if I was eligible to buy the iphone for the discounted price and that if I wasn't how much it was going to cost. This is their response. I have reviewed your account information. Our records show that in order to purchase a new 3G iPhone you must be eligible to upgrade on the service. The system shows that you purchased a phone for the number on 5/15/2007 at a discounted price with a two year service commitment which is still in effect on the service. This prevents you from being eligible to upgrade on the account and will be prevent you from being eligible to purchase the new 3G iPhone. At this time, we are not offering the 3G iPhone at a no-commitment or non-upgrade pricing. In order to purchase the phone, you must be eligible for a standard upgrade on the account.