Chalk up another win for AT&T
 

How To Fix The System - TIME

Chalk up another win for AT&T’s in the competition to become the world’s Most Unpopular Provider. The wireless company announced yesterday, by text message to subscribers and by statement that most of its prepaid customers would no longer be eligible for iPhone service come June 17’s iPhone 3.0 update.

How to Avoid Paying the iPhone 3GS Upgrade Tax | Gadget Lab | Wired.com

Those tears of joy shed by iPhone loyalists are turning into cries of grief with the announcement by AT&T that it will impose a $200 fee to upgrade to the next-generation iPhone, which lands in stores Friday.

For iPhone 3G users who are not eligible for subsidized pricing, the upgrade “tax” brings the grand total to not $200 or $300 — but a hefty $400 or $500 for the iPhone 3GS, depending on the model (16GB or 32GB, respectively).

This same article suggest ways to Avoid Paying the iPhone 3GS Upgrade Tax