AT&T spokesman Michael Coe confirmed the news late Thursday.
"The no-commitment pricing offer is available to AT&T customers for $599 [8 GB] and $699 [16 GB]," Cole said.
Translation: You'll be paying either $200 more for the 8-GB model or $400 more for the 16-GB iPhone.
The buzz about the no-contract bonanza began earlier in the day after Web site Boy Genius posted pictures from an AT&T presentation.
The company's presentation noted that customers buying the iPhone 3G under the no-commit price are not required to activate the phone at the point of sale -- store -- which is usually the case. The no-commit price also is limited to one-per mobile number.