AT&T

Live video iChat on the iPhone may be something we would expect from Apple, but is the timing and technology ripe for this functionality to come out this summer? Some reports are reading into AT&T network upgrades to 7.2 Mbps as a sign that they are bracing for more bandwidth demands from their iPhone subscriber base, and that one of those demands could be live video chat.

The longer AT&T can deliver what Apple needs for its hardware, the longer the company stands to profit from an exclusive arrangement to offer the iPhone on its network. Other leaks and data that point in the direction of a front facing camera on the next generation iPhone have also surfaced.

The AT&T network is about to get faster. Twice as fast as current 3G speeds, using HSPA 7.2 3G wireless technology. This in-progress upgrade to the AT&T network will make speeds of up to 7.2 Mbps possible later this year.

Apple has reportedly designed the next generation iPhone 3.0 to take advantage of these network upgrades when it is released this summer, making the new device twice as fast as current models. LTE technology, otherwise known as 4G, is in the works for future upgrades at AT&T but won't be widely available until 2011.

In a move to preserve the exclusive relationship with Apple and increase iPhone sales, AT&T may be considering changes to iPhone data plan pricing with the introduction of the next generation device. A typical two-year contract would see a price decrease of $10 per month, bringing the cost back to what original iPhone users signed up for in 2007.

Market research has shown that the high monthly cost associated with iPhone contracts may steer some users away from purchasing the device. The minimum cost over the required two-year contract amounts to over $1700 not including text messaging, taxes and fees.

AT&T, the exclusive carrier for Apple's iPhone, is currently field testing base station software upgrades that will double the speed of its 3G network. The upgrades should increase speeds over high-speed packet access (HSPA) to 7.2 megabits per second (Mbps), up from the current 3.6 Mbps.

The company is also upgrading its network backbone to accommodate increasing data traffic. The release of a new iPhone model in June is expected to generate ten times the current demands on bandwidth.

With all the buzz surrounding iPhone OS 3.0, it's easy to forget the incredible potential of next-generation mobile hardware coming our way this summer. When it comes to the insides of Apple's iPhone 3.0, there are plenty of upgrades in the works.

One only has to look at the deals Apple has already made with its partners in the hardware manufacturing business to picture the next device. In one of the most dramatic and exciting developments, LG has made a multibillion dollar deal with Apple to supply the company with OLED displays.

With the initial excitement of Apple's iPhone 3.0 preview already passed, users of the iPhone OS 3.0 Beta have been finding several new features that appear to be in the works for a next generation device. One such feature is video recording, which reports have indicated would come along with an upgraded camera and possibly a multi-core GPU (graphics processing unit).

Backing up the claim are screenshots from the MobileMe upload screen in iPhone OS 3.0 that say "Publish Video" at the top of the app. Of course, a better camera would mean higher-resolution still photos, too. Other features that look interesting have also appeared in leaked screenshots of iPhone OS 3.0 Beta.

AT&T has confirmed it will start selling un-subsidized iPhone 3G hardware without a contract, only months before the release of iPhone 3.0. Both the 8GB and 16GB models will be available at full price, $599 and $699 respectively.

Pre-paid service will not be an option, as activation of no-contract phones will require an iPhone data plan, costing $30 monthly. Unfortunately for those interested in using the device with a different carrier, even the full price iPhone 3G hardware will still be locked to AT&T.

AT&T may begin offering its customers discounts on new phones if they trade in an older model. Rumors of a possible June launch to the program have iPhone enthusiasts buzzing about the implications. The possibility of a next-generation iPhone launch to coincide with a trade-in policy means users returning their old phone could get up to $200 back if the device is in good shape.

Preliminary rules indicate the phone being returned can't be more than two years old. Depending on what shape the phone is in and the model, trade-ins will net the customer $50 to $200 bucks off their purchase of a new phone.

The refurbished iPhones are back! Now available through the AT&T website. Both iPhone 3G models, the 8GB and 16GB, are available with free two-day shipping. Including the refurb discount, this puts the price of an 8GB model at $99 and the 16GB at $199.

Besides being a great deal, the phones come with a warranty of at least 90 days. Apple can provide more details about the specific length of your warranty on their website if you provide the serial number. According to AT&T, these refurbished devices are previously owned, and have been unused or lightly used and returned within the 30-day trial period.

Interested in your own personal cell tower? AT&T is poised to release its femtocell solution for individual users, dubbed the MicroCell. iPhone users rejoice, you have not been forgotten. iTunes has started delivering a carrier update that will support the use of 3G iPhones with the MicroCell device.

Carrier updates are files that include settings which tell the iPhone how to connect to the cellular network and where to look for data such as maps, stocks, and weather. The AT&T MicroCell will require a broadband Internet connection, GPS reception, and will provide support for up to ten 3G mobile devices (even if they're not iPhones).