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In a rare interview, AT&T CEO Randall Stephenson told USA Today about the company's decision to subsidize the iPhone 3G and how the carrier is handling the fallout from investors who didn't like the move because it means that AT&T is paying Apple about $300 per device to keep the retail cost at $199. The article also says that Apple has extended AT&T's exclusive deal on the iPhone until 2010. Article

The handful of lucky reviewers to have early access to the iPhone 3G have revealed their analysis of the new device, which goes on sale Friday, July 11. The conclusion: the iPhone 3G is cheaper and faster (if you're lucky enough to be in one of AT&T's HSPA markets) but it still has some issues such as battery life (higher power demands from the 3G network cause the battery to drain quicker) and there's no Bluetooth or video capabilities. Here's a snapshot of the reviews: Walt Mossberg of the Wall Street Journal . Pro: The new iPhone is much, much faster at fetching data over cell phone networks because it uses a speedy cellular technology called 3G. And it now sports a GPS chip for better location sensing. Con : The iPhone 3G's battery was drained much more quickly in a typical day of use than the battery on the original iPhone, due to the higher power demands of 3G networks. This is an especially significant problem because, unlike most other smart phones, the iPhone has a sealed battery that can't be replaced with a spare. For more, read the article or watch this video of Mossberg's review . David Pogue of The New York Times . Pro: The audio quality of the iPhone 3G has taken a gigantic step forward. "You sound crystal clear to your callers, and they sound crystal clear to you. Few cell phones are this good." Plus, Pogue praises the iPhone App Store, which he says is a central, complete, drop-dead simple online catalog of new programs for the iPhone. Con: AT&T's 3G coverage is spotty. A coverage map reveals that in 16 states, only three cities or fewer are covered. In 10 states there is no coverage at all. For more, read the review here . Edward Baig of USA Today . Pro: Messages and calendar entries are "pushed" to the device, so they show up right away, just as they do on other computers. Set-up is a cinch. Con : You still cannot shoot video or take advantage of Bluetooth stereo or dial with a voice command. For more, see the full review . Related articles: See iPhone 3G Walkthrough Pictures Chronicling the humiliation and anger induced by the iPhone 3G Countdown to the iPhone 3G Apple officially announces iPhone 3G , MobileMe iPhone 3G revises AT&T data pricing

AT&T today provided consumers with pricing plans and tips for purchasing the 3G iPhone on July 11 (buying will begin at 8 a.m. CST). Of course, most of the pricing information has already been revealed, but AT&T is making sure customers know the specifics. Here are the details: For those who will sign a two-year contract, the 3G iPhone will be available for $199 for the 8GB model and $299 for the 16GB version. This includes prepaid customers willing to switch to postpaid, new AT&T customers and current AT&T customers that are eligible for an upgrade. Existing AT&T customers not eligible for an upgrade can purchase a 3G iPhone for $399 (8GB) or $499 (16GB). Both require a new two-year contract. Existing customers who upgrade will have to pay an $18 upgrade fee, new customers will pay the standard $36 activation fee. There are four AT&T Nation plans available to iPhone customers with prices that range from $69.99 per month up to $129.99 per month and all bundle voice and unlimited data which includes email and Web browsing. Unlimited text messaging can be added for $20 per month. If you are still debating whether you want to make the switch, check out our slideshow preview of the 30 minute walkthrough video about the 3G iPhone. For more: - see this press release Related stories: iPhone : rumors and consumer rebellion Report: 3G iPhone costs $173 to make AT&T will subsidize 3G iPhone

As the 3G iPhone was announced Monday, it was discovered that Apple has chosen to eliminate revenue sharing completely and subsidize the price of the new iPhone to half of the original cost. While this is yesterday’s news, it was reported this morning by MarketWatch that this move will end up costing AT&T nearly $1 [...]

This is, according to AT&T, Urgent Breaking News: Effective immediately, customers can only purchase one iPhone device. And you thought you were going to get an iPhone soon? That particular breaking news bulletin was sent out in an e-mail to all AT&T Retail employees today, reminding them that they can only sell one iPhone per customer from here [...]