iPhone To Be Sold Contract Free, But Costs A Fortune And Still Ties You To AT&T

AT&T has announced that starting next week, it will sell the iPhone 3G to current AT&T customers sans 2-year contract, possibly in an attempt to move inventory. Unfortunately, the conditions of the sale are such that it’s not worth it unless you’re determined to own a brand new, out-of-warranty (i.e. jailbroken) iPhone 3G that you intend to use on another network. (Note: our readers point out that even that route is far cheaper if you buy with contract and pay the ETF.) Otherwise, you’ll still be locked to AT&T and you’ll still have to buy the more expensive smartphone data plan, which doesn’t include text messaging. For no-contract bragging rights, you’ll have to pay $600 or $700 depending on the model.

“AT&T: No-contract iPhones coming next week” [CNET]