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Wouldn't it be great if every time you jumped to the iPhone home screen Pandora kept streaming music? The only application that Apple currently allows to run in the background is the iPod, however if recent reports are correct, this could all change.

Pandora is just one example of how useful allowing apps to run in the background could be. Another likely use would be keeping an instant messaging chat connected. Rumors have been swirling about just how Apple would implement background processing considering the limited resources of iPhone hardware.

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.

Reports indicate Verizon Wireless and Apple may actually be discussing two new iPhone-like devices for launch as early as this summer on the Verizon network. One piece of hardware would be a simplified iPhone, with fewer features and a lower price, using CDMA network access.

The second, and arguably more interesting device is somewhere between an iPod Touch and a netbook. Dubbed the "media pad" by a source talking to BusinessWeek, this entirely new Apple hardware would also have access to the Verizon Wireless network, and have the capability to make calls using WiFi.

Look out Verizon fans, the iPhone may be coming sooner than you think. AT&T must be nervous considering reports that the other wireless giant, Verizon Wireless, is currently in high-level talks with Apple about the iPhone. Vodafone, the co-owner of Verizon Wireless, already offers the iPhone in European markets.

It's possible that Apple is considering a CDMA version of the iPhone after all. Observers are predicting that if Verizon and Apple can strike a deal, the iPhone will hit Verizon shelves as early as 2010. AT&T has been trying to extent its exclusive arrangement with Apple beyond its expiration sometime next year into 2011.

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.