AT&T to offer iPhone 3G without two-year contract

March 23, 2009

Fans of the Apple iPhone, which is offered exclusively on AT&T's network in the U.S., will be happy to learn that the service provider intends to offer the new iPhone 3G without the usual two-year contract, making it the first "pay-as-you-go" iPhone.

According to multiple news outlets, word of AT&T's plan leaked out ahead of its roll-out next week when someone obtained a Powerpoint slide from an AT&T sales employee training demonstration.

After days of rumor-trading on websites and blogs, AT&T confirmed to the Associated Press on Thursday that it will begin offering the iPhone 3G without a contract beginning March 26.

A regular AT&T iPhone account will be required to operate the phone. The lack of a contract means customers can cancel their account at any time without penalty. This is also good news for those who like to switch to new phones more frequently than every two years.

A survey released by the New Millenium Research Council yesterdayshows that prepaid cell phone use is on the rise due to the depressed economy.

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