We know that AT&T has the rights to the iphone for a certain number of years, but they dont own the rights to the iphone nano. So if apple made the nano they could sell it to another carrier (sprint , t-mobile, ect.) and get a whole new group of buyers who didnt want to switch carriers to get the iphone. If it was released on AT&T who would buy the nano over the iphone 3g, i mean it would be sort of a down grade some what, as far a screen size and stuff.