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From the Clip AT&T reveals iPhone 3G launch day details posted by Scrivs:

Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement. In the future, AT&T will offer a no-contract-required option for $599 (8GB) or $699 (16GB).

 

AT&T is sticking it to you people who can't get an upgrade while us newbies without a phone or AT&T service get the full-blooded discount. If you are hoping to pick your iPhone 3G up in 10 days I can only pray you qualify for an upgrade.

Amazing that they do this.

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