Rumors of an all-but-given 3G iPhone are hitting the Apple blogs this morning. It seems like everyone is rejoicing, but there's a dark cloud hanging over the 3G iPhone and it has an AT&T logo on it. Buyers of the 3G iPhone will need AT&T's 3G coverage to take advantage of the faster connection.

I've been watching AT&T's 3G coverage map for several months and I'm sorry to report this, but it looks like a lot of the iPhone lovers posting a "count me in" reaction to the 3G iPhone rumor are going to sound like Vermonter's pretty soon. Actually, make that Vermonter's, Mainer's and a few more people from these states:

The iPhone service won’t be available in all or large portions of Alaska, Colorado, the Dakotas, Idaho, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, upstate New York, Oregon, Utah and Wyoming, among other places.

If AT&T doesn't have wireless coverage in these areas, it's safe to say that there isn't any 3G coverage in these locations either. Worse, AT&T's 3G coverage isn't offered everywhere AT&T offers mobile phone service. Not yet, at least.

Take my home state of Colorado. That AT&T 3G coverage map only lists 3G as available in Denver and Colorado Springs. On face value that doesn't look good, but dig down into that coverage map and you'll see that "Denver" actually covers a lot of neighboring cities. Phew.

If limited 3G coverage isn't enough of a hang up for the 3G iPhone, my guess is that the cost of 3G service could pile onto the problem. None of the 3G iPhone rumors have mentioned what AT&T plans to charge for 3G service, but one thing seems certain: it won't be free.

If not free, then how much? In search of an answer to the question I looked to Sprint and AT&T.

AT&T's 3G monthly cost for a plan that included 3G was listed as a bundle. Surprisingly, it matched the cost of the iPhone plans with Edge. That's good news.

What do the competitors charge? According to Dustin with Sprint, Sprint's 3G data plans start at $16/month and top out at $70/month for unlimited service.



While I don't expect Apple to allow AT&T to dig $70-deep into our pockets, I also don't expect AT&T to offer 3G service for free to iPhone users either. I estimate 3G "Data" plans to run $29.99 to $39.99/month for the iPhone. That's just $10 more than the current unlimited data plan for the iPhone, or $20/month.

$10/month more than the current Edge-included plan isn't bad, and I don't think anyone will complain too loudly. But what if it it costs more?

In summary, it looks to me as though users in major cities will have access to AT&T's 3G service, and it seems only logical that it will cost marginally more than the current Edge-included data plan. That's not a lot to complain about, but the reality of the availability of 3G coverage could be a deal-breaker for a lot of potential 3G iPhone buyers. Better hope that it ships with Edge, WiFi and 3G all built in.

As I always say, We'll know more soon.



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tags AT&T | iPhone | Rumor