New contract if not subsidized?

If you want to enroll in one of the special iPhone price plans, they'll probably want you to sign a contract for a certain period of time.

If you stick with your existing price plan (and run the risk of any associated data overages you may incur) then it's possible that may not require a new contract. It has been widely reported that AT&T is eventually going to sell contract-free version of the iPhone 3G, for about $400 more than the price for a new 2-year activation. Such a phone should work with any existing AT&T SIM card.

 

The no-subsidy option isn't available at launch. The 2 options are the upgrade eligible ($199 for 8GB) or the "early upgrade" eligibility ($399 for 8GB). The no-commitment, no-subsidy pricing ($599 for 8GB) will be available later, they haven't specified when. Even the $399/499 price is subsidized. You're paying the $200 extra to get your subsidy now instead of waiting. You'll still need a new contract. The only way to not get a new one is with the $599/699 pricing at a later date.