AT&T to offer 'no-contract' iPhone

AT&T Thursday said that it will start selling iPhones without those pesky two-year contracts beginning March 26. The catch? You'll have to pony up hundreds of dollars more.

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.

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