AT&T Extends iPhone 3G S Upgrade Pricing to Many Customers

While today's big news has been the release of iPhone OS 3.0, AT&T today also announced that it is expanding the eligibility window for determining which customers are eligible for upgrade pricing on the iPhone 3G S. Customers who previously would not have become upgrade eligible until July, August or September of this year will instead qualify for AT&T's lowest upgrade pricing as of tomorrow, making them eligible to purchase the iPhone 3G S at the $199 (16 GB) or $299 (32 GB) price point at launch. Affected customers will save $200 on the purchase of a new iPhone 3G S as a result.

Importantly, we want our customers to better understand our wireless device upgrade program. Like most U.S. carriers, we offer a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

We also currently offer early upgrade pricing only for iPhone 3G S and iPhone 3G.

All of that said, we've been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we're extending the window of upgrade eligibility for a limited time.

We're now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

Newly-eligible customers who have already pre-ordered the iPhone 3G S at the higher prices will receive credits for the difference in price. Users can check their upgrade eligibility status by visiting AT&T's iPhone page, calling *NEW# (*639#) on their AT&T device, or visiting any AT&T store.

Reminder: The new pricing will not appear in the eligibility tools listed until Thursday, June 18th.