AT&T

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.