iPhone 3G:

When news of the iPhone 3G – the second iteration of the sexy, stylish and chic iPhone – hit the streets on June 9, 2008, the promise of a faster, sleeker and all-out better phone also came packed with one bombshell that had everyone’s panties in a bunch: It’d be about half the price of its pricey predecessor.

On Tuesday, however, AT&T delivered what may feel like a sucker punch when it announced its pricing.

As an AT&T customer, can you really snag an iPhone 3G for $199 or $299? Yes, but here are the specific terms and conditions that apply:

1. To get a phone at the lower cost, customers must sign a new two-year service contract with AT&T and activate a new line with AT&T.
   
2. About.com has confirmed that the lower $199 and $299 pricing will remain after the launch date of July 11, 2008.
   
3. According to an email from an AT&T spokesperson: “All current iPhone customers who bought an original (2G) iPhone prior to July 11, 2008 get the same pricing as customers new to AT&T ($199 and $299) as long as their account is in good standing. This is true even if they were not otherwise eligible for an upgrade.”
   
   
4. Current AT&T customers who do not have an iPhone must be eligible for an upgrade discount. Not eligible? This “cheap” price isn’t yours. Eligibility is based on a number of factors including your payment history, nearing the end of your service contract, etc.