AT&T, the telecom that never misses an opportunity to step in it, has made a rather surprising move in an attempt to appease the growing discontent among their iPhone 3G users. As you surely know by now, many who purchased an iPhone 3G last summer were enraged that AT&T was actually going to hold them to the two-year commitment they made last summer in order to get a $500+ phone for $199. Petitions were started, blogs were filled with rage and it was only building as this Friday’s delivery date approached.Then the most amazing thing happened- AT&T, the company that gave us the inspired SNL skit that ended with Lily Tomlin stating-

You see, this phone system consists of a multibillion-dollar matrix of space age technology that is so sophisticated — [ she hits buttons with her elbows ] even we can’t handle it. But that’s your problem, isn’t it? So, the next time you complain about your phone service, why don’t you try using two Dixie cups with a string? We don’t care. We don’t have to. We’re the Phone Company.

…has actually taken steps to calm the rage. Their release follows…

Some customers have had questions about our plans and policies for iPhone 3G S, and we’d like to provide you with answers. We’d also like to announce a change to the date when some iPhone customers are eligible for our best upgrade pricing to iPhone 3G S.

PRICING

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 Friday, June 19.

If you’re one of the many customers who will benefit from this change, please note that our upgrade eligibility website will reflect this change on Thursday, June 18.

We invite you to come to our stores beginning Friday during normal store hours, although please be aware that customer demand may exceed supply in some of our stores. You may also preorder online on June 18 at www.att.com/iPhone, and your iPhone 3G S will arrive in 7 – 14 days. Or you can purchase iPhone 3G S at Apple’s retail and online stores, as well as at other popular retailers.

If you’re one of the customers who benefits from this change, and you’ve already preordered from an AT&T store, we’ll adjust the price of the device when you pick up your device. If you benefit from the change and you pre-ordered from AT&T online, we’ll send you an e-mail and issue you a credit.

If you pre-ordered an iPhone 3G S through Apple’s online store, your upgrade eligibility will be reassessed based on AT&T’s new upgrade policy for iPhone 3G owners. If you are eligible for the lower price, Apple will issue you a credit for the difference as applicable.

So, what if you still aren’t upgrade eligible and you want iPhone 3G S now? You have options:

• You may qualify for the iPhone 3G S early upgrade price of $399 (16GB) or $499 (32GB).
• You can pay full retail—and not have to sign a 2-year contract—at $599 (16GB) or $699 (32GB).
• You can wait until you’re eligible for our best upgrade pricing. We invite you to check your upgrade eligibility by visiting www.att.com/iphone, calling *NEW# (*639#) on your AT&T device (we’ll send you a text with upgrade information), or visiting any of our over 2,200 stores.

If you want more details on our pricing and upgrade policy, check out our FAQs here. And as always, you may visit one of our stores to talk with a representative.

IN SUMMARY

We’ve listened to our customers — and hope our response helps answer some of your questions and concerns.

We are incredibly proud to be the U.S. carrier for the new iPhone 3G S and will work around the clock to be ready on June 19 to serve customers who are interested in the fastest, most powerful iPhone yet.

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