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AT&T prices iPhone service

Silicon Valley / San Jose Business Journal

AT&T Inc. on Tuesday announced what it will charge buyers of Apple Inc.'s iPhone for voice and data services.

AT&T will be the sole provider available for Cupertino-based Apple's (NASDAQ:AAPL) much-anticipated new product, which goes on sale at 6 p.m. local time Friday. The will cost $499 for a 4-gigabyte model or $599 for an 8-gigabyte model.

Buyers will need a two-year contract from San Antonio, Texas-based AT&T (NYSE:T) and must pay a one-time activation fee of $36. There will also be a $175 cancellation fee for customers who decide to discontinue the service before the two years is up.

AT&T said service plans will start at $60 per month, including voice, unlimited data and a new voicemail inbox feature that can be scrolled through like email.

The iPhone can be activated using Apple's iTunes software on a Mac or PC computer. After activation, the iPhone can be synched with files stored on the computer, like with the iPod.

AT&T plans to charge $60 monthly for 450 minutes of cellular talk time, $80 for 900 minutes, and $100 for 1,350 minutes.

Access to email and mobile Web services, the visual voicemail service and the ability to send 200 text messages is included.


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