How To: Get an iPhone 3G for $199… Without Contract! (Updated)

I just set up AT&T service yesterday (at a corp. store) to be ready for the iPhone on Friday. I just got the cheapest flip with no rebate hassle, the Nokia 6085. Can I go into the corp. store, exchage for the refurb Tilt, then proceed with the plan? Or will the exchange for the Tilt lock me in?

Where is the best place to borrow or purchase an iphone?

Did I screw up in my eagerness to be assured an 3g iPhone next week with no signup hassles?

Note: The following only applies to Jason. He screwed up being “eager” and didn’t follow these instructions. Again, you need to order the first phone using the link in the article.

Your best bet is to cancel the account you just made and have someone else order the Tilt online. Basically, you’re following the instructions listed above, except you’re in the same boat as people that have an iPhone and 2-year contract already.

If you don’t know someone with a spare iPhone, you will want to call local AT&T stores in your area, they will continue selling stock until it is depleted. eBay is also option.

I’m not impressed. This feels like a new low especially with all the enthusiasm you’ve put into the “article”.

Kudos for finding this loophole. I think it’s a new high for PhoneNews.com. Excellent work!

I’m now on my way to getting an iPhone 3G for only $199. That saves me $200 I wouldn’t have otherwise!

It all just seems a bit pointless, I mean unless you really want to use your iPhone 3G on T-Mo. Otherwise you are doing a lot of work just to not sign a contract so that you can end up with a phone you can only use on the carrier you don’t want to sign a contract with.

Oh well, I do like loopholes

I was going to do something similar to this when ATT had the original Iphone–since they weren’t giving any discounts on the unit.

I was going to go to the store and buy a tilt….then sell it on Ebay and make about $150. Then I was going to take THAT $ and get an Iphone for $500.

I disagree with those who disagree with this loophole. ATT wins no matter what. They paid PEANUTS for these phones….trust me. In the end, ATT will get $ and the user will save $.

Thankfully, I’ll be switching from VZW, so I’ll be paying $299 for my 16gb–with a freakin ETF of $150

Once again, phone”news” does their best to sound like a legitimate news source but crashes and burns. Why not make people aware that your “link” is simply a referral link that will put a little $ in Christopher P.’s pockets. There’s nothing wrong with doing that; just make people aware of your reasons instead of just saying “TRUST US, everything will be screwed up if you don’t use THIS link! Don’t even go to att.com/wireless! It won’t work!”

if you were so authentic, why not start a post-paid at&t account to properly review their phones. instead, you “specialize”in pre-paid iphone coverage because you have a sprint account and probably can’t pass the at&t credit check.

this website is a joke. i look forward to seeing how long this comment is up before CP, a thief of journalism, removes it and blocks my IP. gain back some credibility and just state that your link is a referral link.

If you start an account with a discounted ATT phone no matter which one it is, then add a used iphone, it doesn’t make u upgrade eligible… your a new customer to att, not an existing one who’s eligible for an upgrade so your pricing is based off of that. Its easy to see that you already got a discount on a phone and in order to get the subsidized price for the iphone would require you to return the 1st phone…

What’s the reasoning that waiting until the end of the 30th day will make AT&T decide to let you keep the phone, anyway? It seems more likely they would just say that it was your fault for waiting until the store was closed and continue billing you for a second month of service since the phone hasn’t been returned…

Reply to willi:

The reason is that there is only a 30 day return policy on the phones. According to the policy you can’t return the phone after 30 days, which is why you get to keep it in exchange for paying the cancellation fee.

Reply to jack:

According to numerous sources, any customer willing to sign a new 2 yr contract is eligible for the rebate pricing on the iPhone 3G. You would only have to pay the higher prices if you were to not want a contract.

Via Engadget:

iPhone 3G will be available for $199 (8GB) and $299 (16GB) for iPhone customers who purchased an iPhone prior to 7/11, customers activating a new line with AT&T and current AT&T customers who are eligible for an upgrade
Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement.

Actually, there’s an even bigger, easier loophole to avoid a contract with ATT.
I heard the messaging rates charge d on iphone are changing in August, or maybe on launch of the new 3G. If true this will work.

Get an old IPHONE, before 7/11, or currently have one.
Activate it and sign a 2 year contract.
On 7/11 upgrade to the new iphone.
The 2 year contract is the same and since it predates the launch of the Iphone 3g you have a special right, the right to cancel when ATT raises their text messaging rates on the Iphone.

Whenever a cellular carrier makes a material change to the rates you get a 30 day free cancellation window. *everyone* who has a cellular contract should cancel whenever they get the chance.

FWIW Tmobile put a bill stuffer in this months bill raising text messaging rates to 20 Cents per message for sending or receiving. So each Tmobile customer has 30 days from the effective date of August 29, 2008 to cancel free. You should do it. After you cancel you will be eligible for another subsidized phone since you have no contract.

Reply to Steevo:

That is true, but as soon as you walk through the door and upgrade and SIGN a new contract, you are signing that you accept the new T&C’s and you don’t have that right anymore. Anyone can do that currently, but you wouldn’t be able to upgrade to the iPhone 3G for the rebate pricing and then take advantage of that loophole.

there is no such thing as rebate pricing.. its either upgrade eligible (199/299), early upgrade (399/499), new activation (199/299). Doing the scheme as presented above is a new activation and in order to get the discounted prices requires you to return the originally discounted phone in this case its the tilt. Just because you activate a 1st gen iphone doesn’t change the fact that your still a brand new customer and doesn’t qualify you for an automatic upgrade since you have no account history or haven’t even paid a bill yet.

The iPhone isn’t at all impressive. It is the most convoluted peace of garbage and I don’t get what people see in it. The Neo Freerunner is not only cheaper, unlocked, contract free, but it also based on a completely free design. You can do whatever you want with it on any network!

It is a much sweeter deal too. Instead of the $600 you pay about $450 for the same thing once you add in the cost of an 8GB MicroSDHC card. Unlike the iPhone any application can take full advantage of its features too. For instance the applications you get can take advantage of the GPS built-in. You don’t have to pay absurd carrier charges for it either as the thing has built in 802.11B/G wifi. Over the course of 2 years you can save about $145($6 / month plan) on things like SMS charges too depending on where you live and what carrier you have. This is not to mention the monthly fee for normal phone service is going to be a fraction of the cost. You can still get Internet access too via the carrier if you want it.

http://www.openmoko.com/product.html

Some have asked why you would want an iPhone without contract.

I assure you, the thousands of iPhone hackers on the internet (here and abroad) would love to have an iPhone 3G without any contract tied to it.

Also, for current iPhone owners; following this process nets you an iPhone 3G on your original postpay account… which will now only have one year to go on the contract. If you’re not happy with the 3G coverage in your area, this is a great way to upgrade but still be able to cancel next year, sans ETF.

Finally, those that really benefit from this deal are those on an AT&T contract, but don’t have an iPhone. This nets them a $200 savings instantly.

P.S. Jack, the Neo FreeRunner lacks both EDGE (which the first iPhone had), and any UMTS/HSPA access at all. If you like Wi-Fi primarily, this deal isn’t for you… an iPod touch would be a more valid competitor. With the AppStore, you can use VoIP on the iPod touch, and that is a much more valid comparison to the FreeRunner. The FreeRunner is much more of a Linux development niche phone.

P.P.S. Jack, you are incorrect about the pricing. Using this process knocks you down to the $199/$299 tier, since being an iPhone owner forces AT&T to sell the device to you at the $199/$299 price point, something which we have covered previously.

The only reason it is stated that the link in the article must be used is because it is an affiliate link - the writer of this article receives cash for everybody he gets to purchase via the link - regardless of whether the tactics stated work.

Additionally, this is likely in violation of the AT&T affiliate agreement with Linkshare.

Mark, if this process stops working, we would certainly update our readers immediately. We put our readers before paying the bills. Plus, if it doesn’t work… you can just return your phones and cancel in the first 30 days! Then there’s no ETF.

Of course we, like every other member of the mobile media, use affiliate links when possible. We would have posted this guide regardless.

We are in full compliance with our relationship with Linkshare. We are not violating (nor are we even suggesting that customers breach) their Terms of Service with AT&T. Paying the Early Termination Fee is a legitimate end of the contract. It’s AT&T’s fault for overpricing the full retail price of iPhone 3G, and it’s as simple as that.

just fyi all the link they insist on using are add links wich pay them. but great guide nice if i had the money i did it so go ahead and have fun.

Dude… You didn’t even cloak your affiliate links!

Why the hell won’t Apple just sell the damned thing unlocked?

I wouldn’t buy it anyway but right now it is being used as a ‘carrot’ for people to put up with a carrier and contract they otherwise wouldn’t. There will probably be some announcement tomorrow with a small change to their agreement.

In response to “why would you want to do, you can only go to t-mo” t-mo is cheaper and can roam on att for free. T-mo’s plans are half att price and same net.

what kind of rate plans do we sign up with AT&T?

For the sake of argument, let’s say I can’t get an old iPhone… Say they’re sold out or something. Would the next best thing be to buy a new one on the 11th and cancel the contract before 30 days? Then I don’t pay the termination fee, supposedly, only the activation fee. So new iPhone with no contract=$299+$36=$335? Then things start to get hazy… What do I do after that point if I don’t want to sign up for an AT&T plan? It sounds like the new phone won’t work on T-mobile and GoPhone won’t be offered either.

Reply to aa:

You wouldn’t want to then. The point of this is to walk away with a new iPhone without a contract because: you have an existing line with AT&T and don’t want to extend the contract -OR- you are a developer and want to test applications without have another phone on a contract.

Dan H- thanks… I guess a new iPhone with no contract for $335 doesn’t sound bad? I could always resell it, maybe after unlocking it.

I’d keep it if there was a hack like with the old iPhone and the $6.99 Tmobile data plan. I mostly care about data.

2 things Friends don’t sell to to friends.
(1)- A FORD. iF You HAVE A BROTHER IN JAIL AND A BROTHER IN A FORD GO GET YOUR BROTHER OUT OF THE FORD FIRST.

(2) ANYTHING WITH AT%T

I work for AT&T and to due to proprietary reasons, I can not discuss much about the iPhone 3g prior to 7/11, but I can tell you that unless you get someone who doesn’t care about their job with AT&T when you go to cancel, this idea will not work. There are many rules in place specifically for canceling service if an iPhone 3g is on the account or in the equipment history of the account. Nice try, though!

I’ll be curious to see if this works, but I think there’s a glaring problem with your logic here. Apple has required that AT&T allow people to upgrade their existing iPhones, yes, but AT&T’s part of that concession is that when you upgrade the phone, you sign a two-year extension to your contract. Basically, Apple has required that every iPhone owner be considered upgrade-eligible, NOT that they be allowed to just purchase a new iPhone with their old service. At the very least, those of you looking to keep your old rates need to know that, since it’s not gonna happen.

Also, I don’t see why AT&T wouldn’t simply require you to ship in your phone when you call them. If you fail to do so, then they continue to charge you and treat your cancellation as null and void. I can’t imagine that they haven’t thought through the whole “phone cancellation” process.

Again, I hope it works for you all, (I’ll be getting mine the regular way,) but I seriously wouldn’t go through with this if you’re not prepared for the possibility of getting stuck with cancellation fees and no phone.

SO how much are you profiting off this guide? C’mon that link is from http://www.linkshare.com and promocode is clearly visible “PROMO=promo1470017″
you must be rich by now ;))

First, some are not reading the entire comments before posting.

So, we’ll repeat it again: Of course we, like every other member of the mobile media, use affiliate links when possible. We would have posted this guide regardless.

As to the “att employee” that says this will not work, we have read all the launch details issued… there is noting to-date issued that prevents this method from working, inside or outside of AT&T.

Finally, we’ve added a brief preamble to the guide, explaining the different reasons why you might want to embark on this process.

“The process only requires that you (or someone you can borrow) does not have active service with AT&T.”

But it also requires an old iPhone right? That seems like the more difficult requirement, seeing as they’re out of stock everywhere. I’d need to get one off Ebay and make *sure* it and the refurb Tilt got here before Friday. And the ones on Ebay aren’t cheap either, maybe because they already are unlocked

How I wish I leave at US

“We stress that you should use the above link and not order from a third-party store, for reasons that will complicate this guide (but trust us, order direct using the above link).”

You lost substantial credibility right there. How transparent!

“Of course we, like every other member of the mobile media, use affiliate links when possible. We would have posted this guide regardless.”

You regained none of it there. But if you’d wanted to regain some credibility, you’d have removed those affliate links. There are very serious flaws in your *theory* and while the suckers click away on your link and stuff cash in your pocket, they assume all risks (rather probability — it’s a virtual guarantee) that this will blow up in their face. But you’ve got nothing to lose by posting your misguidance, yet $omething to gain. Very clever. Very low.

Perhaps you missed where we said that most of the staff was doing this ourselves. We’re confident that as things stand, there will be no issue.

And again, worst-case, you just return the Tilt to AT&T and cancel service within the 30 days. No ETF can be charged in the first 30 days, so there’s really no risk here.

We have no plans to remove affiliate links. As we have said, we would have posted this guide regardless. We post affiliate links wherever relevant, so long as they do not interfere with the content in question. That is standard for most online media, look at the success of initiatives such as Amazon.com Associates.

Do we profit more from this guide than others? Sure. Would we have posted it anyways? Absolutely.

I hope that answers everyone’s questions on affiliate links. We will be deleting further comments on that debate, and directing posters to discuss about that in the forums. It is inhibiting discussion about the workflow that is reported on here.

Just a thought:

I’m not a lawyer, but I was under the impression that selling an unlocked phone was illegal (in the US, at least). This might cause some trouble for anyone selling an unlocked Tilt on eBay.

The phone’s firmware (which you’re exposing the world by unlocking it) is copyrighted material, protected by the DMCA, and thanks to a lovely clause in there, circumventing “protection” to access that firmware is illegal.

That sucks. Luckily, there is an exception that allows you to unlock phones (http://arstechnica.com/news.ars/post/20061124-8280.html). What I don’t know is whether that still applies when you aren’t unlocking the phone for personal use. I had thought selling unlocked phones was illegal, though I can’t find anything mentioning that now. Does anyone else know more about this?

[...] [via PhoneNews] [...]

Sarten-X, you are absolutely incorrect in that it is illegal to sell an unlocked phone in the U.S. I direct you to Motorola’s online store for proof.

As far as unlocking the Tilt and then selling it, thanks to the Copyright Office ruling, anyone is more than allowed to unlock their device provided it can be done and it does not specify that it only be done for personal use. The DMCA does not apply to phone unlocking, nor does it affect unlocked phone sales at all.

People, don’t forget that you need to return the phone if you cancel within 30 days (as per ATT ToS).

all I can say is AT&T sucks ***. What a crappy company.

Motorola’s online store isn’t any sort of proof that an individual selling an unlocked phone would be legal. Motorola owns the copyright to the phones, so it can do whatever it wants.

The DMCA does apply to phone unlocking, at least in a strict sense (considering the firmware to be copyrighted material). That’s why the exception is there.

To quote the exception, from the Library of Congress:
“Computer programs in the form of firmware that enable wireless telephone handsets to connect to a wireless telephone communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless telephone communication network.”

(http://www.copyright.gov/1201/docs/1201_recommendation.pdf, page 53)

This isn’t clear whether resale is part of that “sole purpose” or not. Again, not being a lawyer, I don’t know. Are there any references elsewhere that clarify this?

Where’s the mention of the cost of the original needed Iphone to pull this off? Doesn’t seem like the math adds up.

They seem to be going for $550-$650 on Ebay, depending on whether they’re new or not. Presumably you’d need to resell for that amount after the 11th. Need to factor in $40 or so for shipping and Ebay seller fees.

Forgot Paypal transaction fee… Maybe closer to $60.

Sarten-X, you can read our prior reporting on the recent unlocking clarifications using the search tool at the top of the page.

However, to hammer it home, it is generally accepted that SIM unlocking a phone is legal in the United States. If there was a controversy on that, we’d cover it, and advocate that SIM unlocking be made more clearly legal. It is our opinion (and the opinion of the Bush Administration) that it settled and moot.

There are some gray areas which the courts have yet to address (not that it’s clear they ever will), but the process involved on unlocking the HTC Tilt does not step into any of those areas. If you want technical clarifications on that, I’d suggest starting a new thread in the PhoneNews.com Forums.

As to not including the cost of the iPhone, we did that for a reason.

You can borrow a friend’s iPhone for using this process, and then give it back to them after July 11.

You only need to pay for an iPhone if you don’t know anyone that will let you borrow an iPhone for the process. Now, we’re not saying you don’t have enough friends… but…

[...] AT&T, Apple, General News We’ve updated our iPhone 3G buying-without-contract-for-$199 guide. [...]

Was hoping this would be less convoluted. I don’t live in the US and wanted to bring a hacked iPhone home…

Chris - I’m on Verizon Wireless as part of myself and my wife having a family plan. Since I’m locked in until 2010 (she upgraded her phone this year) I was thinking about doing this process for an unactive iPhone + GPS for the car.

However, I wanted your opinion - do you think the new iPod Touches (perhaps announced in Sept?) will have GPS?

The iPod touch won’t have GPS as the Maps require an always-on internet connection (provided by 3G).

They can fix this loophole easily by only enabling one 3G upgrade per IMEI.

[...] most time spent on line. Talk about pointless records. Maybe they’ll find time to read about how you can get a 3G iPhone for $199 without a contract. At least this isn’t in Canada, where high data rates has Apple ticked off, to the point [...]

WHERE IS THE “LINK ABOVE” PLEASE CLARIFY

Susan, that would not fix the loophole. All it would do is prevent multiple people from taking advantage of this deal by using a single iPhone. And, there’s no evidence that AT&T will even do that in time for the July 11 launch.

Further, if iPhone 3G does work with GoPhone prepaid service, then it does make for an excellent GPS device. You would just pay $19.99/month for the MEdia Net data package, and have unlimited GPS access.

“you need to order the first phone using the link in the article.”

WHERE IS THAT LINK???

Wait for the refurbs people!!! $249 for 8gb 3g or $349 for 16gb. Hell, I got my $249 8gb iphone on June 1st w/o any ties to ATT. Unlocked and now with tons of apps. I’ll be busy with this one and will wait until the day I can buy a refurb w/o contracts and there is a hack to use T-mobile’s 3g. That will be the day I will join the 3g iphone bandwagon.

Mr. Q, it is very unlikely a refurbished iPhone 3G would cost anywhere near that price. With the no-contract pricing set at $599/$699, you’re looking at best-case $499/$599 for refurbished stock.

Steve, the link is placed three times in the article, look for the blue, underlined links.

I guess we’ll see after 1yr. I can live w/o 3g, so can most people. However, i can’t live while ATT is milking me for 2yrs.

Pertaining to the assumption that one will be able to cancel service without returning the iPhone…. WRONG! I know firsthand through knowledge gained through my own employer that att has placed a similar restriction as my employer on their accounts that they will have to verify the return of the equipment or else no cancellation. If for some reason they do get past the system, the system auto-bills the account for the entire retail price of equipment without a billing code being placed on the account to waive such charges; I deal with it everyday and mark my words, beginning July 11 Big Blue will be doing it too. Won’t work… period.

The Competitor Guy, we figured out how to get around that by waiting a full 30 days. After the end of the 30th day, you are not required to return the equipment anymore. Instead, you pay the Early Termination Fee.

Here, we want to pay the Early Termination Fee, since that is canceled out by the profit generated on the sale of the Tilt.

Under no circumstances can AT&T require that you both pay the ETF and return equipment. All the carriers argue that the ETF is required because of the cost of the device to begin with.

so, in order for you to get the iphone 3g for 199, you have to show apple the 1st gen iphone? will they take the 1st iphone in order to get the discount rate?

S Wrong, no, you get to keep your first-generation iPhone. AT&T is not taking away anyone’s original iPhone when they upgrade to iPhone 3G.

Goto http://www.wireless.att.com/cell-phone-service/specials/iPhone.jsp

can someone who followed this guide see if he/she is eligible for an upgrade???

So, will they have you activate the 3G iphone there and extend the contract while at the apple store, or will you bring it back along with your 1st gen iphone. so if I have a 1st gen iphone and buy the 3G iphone, will i be able to give the 3G iphone to my brother to use while I use the 1st gen iphone or will the 1st gen iphone become unactivated since i bought the new one

So, has anyone actually confirmed that a 2g iphone activated today will actually allow you to select the old plan and NOT require you to update to 2.0 first?

Hey there, please tell me what I can do in this scenario:

I am a current AT&T customer on a Family Plan, eligible for an upgrade (so I can pay $199 for the iPhone). If I sign up to add the $30/month iPhone data plan, can I cancel that and pay the ETF, and go back to my regular voice plan but still use the iPhone in its non-unlocked state (until it gets unlocked)? I’d be very interested in that possibility…

Actually, let me revise that. I will sign up as a new customer (since it’s not my name on the family plan) with a new line and everything so I can get the $199 price. Then during the 30 day period I’d like to use my original SIM card in the iPhone, then cancel and hopefully unlock the phone. But while it’s still locked, will I be able to use my other AT&T card with it?

If you do not want to eBay the original iPhone or Tilt, http://www.flipswap.com is paying up to $200 for 8Gb first gens and $187 for tilts (I am not affiliated).
Also http://www.zendoo.com has used first gen iPhones at pretty substantial discounts (I am affiliated with this website).

At this point, it probably is too late. The order would have to ship by today for you to get it Friday… and I doubt any more orders will ship today.

You can still do this deal by buying a phone in an AT&T store (one without any rebates). However, the numbers would be off and you’d have to whip out a calculator and do the math yourself…

Remember, you have to have your first-gen iPhone active on the account before July 11th. With two-day shipping from AT&T’s online store, it looks like that’s not an option anymore.

Again, ChrisP, you have not clarified if you know for sure that the account needs to be active before the 11th, and if iTunes will even allow you to make an account at this point. Have you actually went through this procedure all the way up to the point of buying the 3g phone (which will happen on friday and we know you haven’t done yet)?

Do you get charged an additional actiavation fee when you sign up for the iphone 2g account?

To get this to work, why can’t someone choose overnight shipping?

As I have said, you need to activate the iPhone on the new account before July 11.

As I have said, yes, we are doing this in-house. I have my refurbished AT&T Tilt on my desk right next to me.

Activating the 2G iPhone does not charge an $18 fee. Activating the 3G iPhone however, will charge that fee.

You can chose overnight shipping, but it’s not something we reccomend. Any delays in processing the order would leave you without a device, and an open account (meaning you couldn’t walk into the store and buy an iPhone 3G as a new customer).

Thing is, if they do not get it to me in time I can just tell them to cancel the whole thing because they were too slow - either way I do not lose out….

so… can I terminate the contract oversea?
I leave the country for school exchange next week…
199+170+36+70=475 for an iphone 8GB w/o contract is ok for me. still better to buy an unlock phone from AT&T for 599.

i am confused… why do we need to activate an account w/ AT&T prior july11?

Question - can I take the sim from the tilt and put it in the iphone to activate the iphone? Or do I have to get a new unused sim card from somewhere??

I was wondering if someone could give me some input. I currently have an original iphone on AT+T contract, but would really like gps+ bigger memory. 3G wont be in my area for many years I am afraid, so thats really a non issue. i just dont want to pay all the extra money monthly for no added features.
Would I be better off adding a second line with the 3g iphone, and cancelling after 30 days, keep phone and use original iphone sim or would att block the phone after i cancelled?
I am asuming that in this scenario i would keep original iphone and contract, be able to use new iphone under old contract effectively gaining a 3g iphone for slightly cheaper than non commitment 3g iphone and an iphone to pawn off or give away.
Any input would be appreaciated.

Can we activate old iphone after July 11th,
I have ordered the tilt today. and im sure i wont get it by friday for sure. Can you give me some officially source which denies activating original iphone after july 11? why this idea cannot be used after july 11?

A few points-

Att does next day shipping - the 2 day thing is just extra time for them to process. So you may get it in time still. Call the order support line on wednesday and find out from them if it has shipped yet… (ships from tx)

My question about the sim has not been answered, but here are 2 scenarios:

If you have to have the sim from the tilt then if you don’t get it in time….. we know what happens

If you can use a different sim, you can probably call att and get your acct info from them and manage to do this regardless.

If you have no choice but to use a diff sim, then all you need is ur acct info…

Last point - will the current version of itunes available on apples site allow you to do this or do I need a copy of an earlier version of itunes. I just downloaded version 7.6. Which version did phonenews use?

Someone raised the point of AT&T charging $599 for an unlocked version.

To be clear, the full contract price does NOT mean that the device is unlocked. When you pay $599 to buy iPhone 3G without contract, it is STILL locked to AT&T.

We do not know when an unlocking solution will be available, and to-date no iPhone 3G has been confirmed to be unlocked.

chris what about the rest of my questions??

The problem with your idea (in your previous comment) is what you may not be able to switch SIMs on a phone that hasn’t arrived yet. AT&T often requires you to call in before activation is completed. Then you would be stuck with a phone which hasn’t arrived yet, and be unable to activate a new line of service for your iPhone 3G.

As to activating the first-generation iPhone, we used to current version of iTunes, but that really isn’t necessary.

Your response seemed kinda cryptic - but it seems that you are verifying that if the phone DID arrive, then I indeed can take the sim out of the tilt and put it in the iphone and everything should work fine…

If I am wrong, please correct me…

It’s not cryptic, you just haven’t read how iPhone activations are different from a typical GSM phone.

To activate an iPhone, you connect it to iTunes. The iPhone uses the SIM inside of it, and transfers service from one SIM to the other.

If your iPhone has already been activated, you need (as the instructions above read), another blank SIM. You insert a blank (unprogrammed) SIM into iPhone, and then iPhone activates that SIM, transferring service from the SIM inside of the Tilt.

So, you need the Tilt with its SIM, you need your iPhone, and you need an unprogrammed SIM (either one that comes with the iPhone, or a second blank one from an AT&T store).

Oh ok, thanks for clearing that up. Now att will be glad to just hand the sim over to me?? I thought they charge 20 bux for it…(they used to..) Maybe I have one lying around somewhere…

Thanks

It is policy to give the SIM away at no charge, unless you lost the SIM. Non-corporate stores may charge for them. iPhone activations are not supposed to have a charge for a new SIM, since you need a new, blank SIM to activate the iPhone.

How does AT&T’s online activation work? With the 11th only a day away, if I order the Tilt right now, could I activate it online and then activate an old iPhone before the 11th? Or would I have to wait for the Tilt to arrive in the mail before activating and moving to the next step?

Jesse, as we posted above… you risk not being able to do that. It is possible once you are emailed your phone number to attempt iTunes activation.

However, until a test call is placed from the Tilt, there is no guarantee that the account will be provisioned for use.

We can’t verify if that will work or not, and as such… we aren’t recommending it. Nothing is stopping you from trying, just keep in mind that it may not work.

Thanks for the reply.. a thought just occurred to me; If you bought a no-contract 3G, then went through the above steps (Tilt -> iPhone activation) with a 3G instead, and then ebayed the Tilt afterward, you could essentially unlock your 3G for the same price as the no-contract phone.

AT&T Tilt Refurb price with 2-year contract: -$99
Activation Fee: -$36
One month of service: -$70
Early Termination Fee: -$170
No-contract iPhone 3G 8 GB: -$599
Total Costs: -$974
eBay value of AT&T Tilt Unlocked: ~$380

$974 - $380 = $594, and voila..unlocked iPhone 3G for the same price as a no-contract AT&T locked 3G.

Jesse, you’re making a common error. Buying an iPhone for $599 does not unlock it. The no-contract price for iPhone 3G still leaves you with an iPhone locked to AT&T. This guide also will result in a locked iPhone 3G.

AT&T has said that Apple will not allow them to unlock any iPhone.

So I went to an ATT store to get a “free” sim card. They refused to give it to me for less than $25 unless I activated with them right there and then.

total cost + $25

Ben, did you tell them it was for an iPhone activation? If so, they aren’t supposed to impose the fee. That’s a violation of AT&T policy, as first-generation iPhone activations are to be done at home.

Alright so lets say I end up getting the 3G iphone without a contract…..What will happen if I put my first generation iphone sim card into the 3G iphone? Will it work? Also will it still be the same $59.99 plan if I am using my first gen iphone sim in the iphone 3G? Does anyone know?

Chris,

I did tell them that and they refused. I went back w/ my iphone and laptop ready to do it in store, and then they refused too. If you show me exactly where the policy is maybe I can hold them to it… but that guy was a total idiot - I’m gonna have to try a different store….

Regardless I found a sim on the floor that looked new - and I got my phone # in my email (even though the tilt will be arriving friday) I activated through itunes, and I got an email that activation is pending…. hopefully it will go through… I’ll update when I know..

Thanks…

Jon Jovi, you cannot activate an iPhone 3G as you have described.

iPhone 3G must be activated in an Apple or AT&T retail store. There, the phone is “debricked” which enables it for use on a qualified AT&T plan.

We do not know if, after that point, you will be able to use unsupported SIMs or plans with the device. We won’t know that until the phone is released and in our hands.

anyone have any experience with the activation pending thing? Strange…. after I did it my iphone now will only allow me to connect to itunes and do emergency calls….I guess its been unactivated but not reactivated…

I have two questions:
First of all, will AT&T disable the phone after you cancel their service?
Also, what software are you guys going to use to the iPhone to be able to use any sim you want?

Unless AT&T is really dump at math, I do not believe the cancellation fee would be $170.

Because lots of people will buy it for 200, way for 30 days, and take 170 penalty = 370.
Which is still a lot less than 600 for uncontracted.

Update - activation went through - my iphone is running and activated. My tilt arrives tommorow. As long as you get your new # in the mail, you can get away w/ doing this…

I want an iphone trade oven and fridge for it and microwave for 3g?

OK, I know everyone here will laugh but I bought the Gen 1 iPhone on May 15th. 16GB no less. Guess I should have done my homework. I’ve been asking for a trade-in to no avail. Any suggestion as to the smartest and cheapest way to upgrade? I am ATT.

How long does it usually take from iphone activation to upgrade eligible status showing up on your account?

[...] subscribe to the the feed.I’m wondering if this would work. PhoneNews.com last week posted a guide on how to get the iPhone 3G for $199, without a contract (emphasis on that last part). [...]

This is slightly unrelated but does anyone know if I can use the iphone (either gen 1 OR 3g) with an existing family plan? None of them have iphones. Ideally I’d only pay $9.99/month and still be able to use the wifi.

From talking to someone at the AT&T store it sounds like I’d be forced to pay $20/month (or is it $30 for the 3g?) for a data plan when I activate… Is there any way around this??? I really don’t care about data- I just need a phone for emergencies and it would be a bonus to be able to use the wifi. And I don’t want to pay more than $9.99/month.

I forgot to ask- if I get myself added on a $9.99 family plan do I have to sign any kind of contract?

So did anyone try this method and get the new Iphone 3G yet?

I went to the apple store to find 500 people in line…. I’m gonna wait till next week to get it. Oh, and I got my tilt today

@help

Officially you are suppose to only use AT&T’s iphone plans with a stock iphone. But I understand with an unlocked iphone, you should be able to use it with any compatible GSM plan which includes postpaid, or prepaid from any GSM provider.

@aloha yao

also waiting for feedback from people here.

@cubara

Thanks… I *want* to use AT&T’s plan. I want to add an iphone to my family’s existing family plan for $9.99/month. But I don’t want to have to pay $20/month (or $30 for the 3g) for data. That’s the question- if that’s possible. According to the person I talked with at the AT&T store- it’s not- I’m forced to sign up for a data plan.

@help

Right, you would still need an unlocked iphone to use AT&T’s non-iphone plans.

[...] Did the convoluted cheap iPhone 3G guide actually [...]

you can buy the new 3G Iphone without a contract by simply asking at the apple store!

they offer 3 ways to buy:
1. old iphone customers with the upgrade get them for 200 and 300
2. people not eligible for an upgrade get them for 300 and 400
3. people not wanting a contract get them for 600 and 700

and i just got off the phone with the AT&T sales rep who told me that yes you can put them on the pick your plan pre-paid plans. all you do is take your phone you bought from the apple store home and connect it with itunes. click to activate and when it notifies you that a deposit is needed click to activate without one and it will give you the option to put it on the pre paid accounts.

there you go, its legal and works a side from the hefty price tag

also if you want to get one even cheaper then the crazy plan offered by the guy on here then do this:

go pay the 600 or 700 for the new iphone 3G ( 8gb or 16gb). then go home and put the dam thing on ebay so one of the morons on there can bid on it. they are selling upwards of $1200.00 right now!

you should be able to double your money or get dam close to it. once you did that then take your money from the sale and put the 600 or 700 back in your bank and take the rest you made back to the apple store and buy another one out right with no contract.

there you go

Pat, whoever told you that at the Apple Store was untrained, and probably should be fired. They must have held their hands over their ears during training. Safe to say, your experience is more than atypical.

Will this whole ‘action plan’ to get iphone 3g (w/ tilt & iphone 1st gen) work if I order a tilt after July 11? My concern is, if I get my hands on a used iphone 1st gen now, can I change my activation from tilt to iphone 1st gen?

so I have a question I recently had the iphone edge and it got stolen while i was in europe…I had to get a replacement gophone and now that shows up in my account information i want to upgrade to iphone 3g but do i have to use my upgrade or can i tell them i used to have an iphone..if not is there anyway i can manually input my imei number off the box to my att account?

yo, i just upgrade to a tilt from my iphone 2g (since i was out of contract) on the at&t site.
I’m going to leave the iphone on the line and sell the tilt when it comes in the mail.

Can i still get the iphone 3g for 199? Since iphone 2g is still technically on my line, i should be eligible for upgrade?

So I thought I would share my own little tweak on this plan that I successfully ran through yesterday. I got in line at 3:50 am for the new iphone. I went in to upgrade from my existing iphone to the new one. After getting through this… wasnt able to activate in store because the activation servers were down… I went home and took a nap. At around 2:30 pm activation servers were back up. I activated my new phone, put a new sim that I got a few days before into the old iphone, plugged it in, and activated it on my other plan (week old, refurbished tilt plan for my wife). I went right back into the store and then upgraded that plan to get my wife the new iphone also. Then I am selling the tilt and the old iphone on ebay to pay for our 2 new phones which we got for the upgrade price. I also had 2 couple apple gift cards so I wont have spent a dime. Thanks for the advice.

Will the guide work post july 11 purchase of the tilt???

Aaron: You did this all on 7/11? looks like the prior to 7/11 is not real? Cleary, you activated it yesterday which by definition is not prior to 7/11. So we have hope?

FORWARDED THIS THE APPLE, goodluck *********

Snitch ER …..you are a ****. Your karma is going to suck. It probably already does.

Just to clarify, this guide will not work (as well) after July 11.

Apple’s agreement with AT&T required you to activate your first-gen iPhone before July 11.

If you attempt this guide now, you will be paying $399 for iPhone 3G (or $499 for the 16 GB).

Now, you will still benefit from this guide probably (the Tilt is still worth more than the $99 + $175 ETF + $18 Upgrade Fee)… but you certainly won’t get an iPhone 3G for $199 without contract.

A question guys, I got my Iphone 3G on July 12th…Do I cancel on the 30th day from that, or the 30th day from when my account was started? I opened a new line with ATT on July 8th. Thanks.

@jon, u misread this whole guide. You won’t benefit from canceling. If you do, you’re going to have to sell your 3G on ebay.

@chris: I upgraded to a tilt on 7/12 (out of contract, eligible). I activated my old iphone 2g yesterday on 7/12 as well. And this morning, it shows i’m eligible for upgrades again…

so you tell me what this means.

Once my tilt ships, i’m going in to the store to see if i can upgrade to the iphone 3g.

@minh

I wanted to have the Iphone 3G, but without a contract. I still do not know when to actually cancel the account. Any ideas?

@jon, The Original post stated you would need an original iphone. You should first, upgrade to the tilt. Then activate the old iphone on the current line. This would make you eligble for the $199 iphone 3g again (after buying your tilt at 149). Buy the iphone 3g for $199. Now you essentially bought 2 phones at discounted price. You don’t need 2 phones. Sell the Tilt (~$380).

Math
AT&T Tilt Refurb price with 2-year contract: -$149 now.
Activation Fee: -$36
Activated OLD 2g iphone: free
BUY iPhone 3G 8 GB: -$199
One month of service: -$70
then cancel:
Early Termination Fee: -$170
Total Costs: -$624

sell:
eBay value of AT&T Tilt Unlocked: ~$380

$624- $380 = $244… and no contract.

Why would AT&T just give you the phone after 30 days? I’m guessing in the contract you’re agreeing to return the phone within 30 days, even if the store is closed, wouldn’t they ask you to bring it back the next day? I would think you’d still be liable to return the phone even though the store is closed that day, anyone else see the logic behind this? And if you didn’t return it, they’d probably hit you with the full price $599 or $699, less what you paid, to keep the phone. Anybody?

As an AT&T employee I can tell everyone that we are well aware of this loophole and that you now need to have the 2G iPhone on your account for 90 days before you are upgrade eligible for a iPhone 3G at the $199 price. Also Mr. Price’s referral link is indeed in violation of the referral TOS.

You get the phone because you pay the early termination fee, which reimburses us for the loss of monthly payments. It’s how subsidies on phones work.

Ryan, not to be blunt, but put up or shut up on your last point. We’re sick of people making up contracts terms that don’t exist.

Telling people that paying the Early Termination Fee nets them a lower cost is not a violation of any agreement. AT&T made the convoluted pricing, it’s up to them to either live with it, or restructure iPhone 3G prices that make a bit more sense.

I work for AT&T, so I think I would know a little bit about how things work with this company.
If people want to cut and run after 30 days, they can. It’s not against anything.

What you are doing is luring people into a trap for your own profit. It’s sickening.

@minh

Yeah, I read all that and followed it. I bought the Tilt, activated it, then activated my old Iphone. Next, I bought the Iphone 3G for $199. I just need to know when to cancel my account so that I do not get charged for 2 months of service. I Ordered the Tilt on July 8th. I received it on the 11th and activated that day. The next day the 12th, I was able to purchase the Iphone 3G for $199. Do I cancel the plan on the 30th day starting from the 12th or from the 8th when my phone was ordered? Thanks for the replies Minh. Any input from others would be also helpful. Thanks!

CHRIS
I HAVE A DIFF. CARRIER AND WAS THINKING OF HOW TO GET A NEW 3G W/OUT ACTIVATING A AT & T CONTRACT.. SO CORRECT ME IF I’M WRONG…
MY FRIEND BOUGHT (IT WAS AN UPGRADE 299) THE NEW 3G.. I TOLD HIM TO GO IN THE APPLE STORE AND SAY THAT HE LOST HIS NEW 3G.. WOULD HE BE ALLOWED TO BUY A NEW ONE FOR 299? WOULD THE OLD 3G STILL WORK AS AN IPOD UNTIL UNLOCKING BECOMES AVAILABLE FOR ME? HELP ME OUT HERE BECAUSE I DON’T SEE HOW THIS WOULDN’T WORK…

That would not work, the replacement iPhone 3G would cost $499, and require another renewal of the 2-year agreement. Theoretically after 90 days they might let him/her buy as a first-gen iPhone buyer, policy isn’t really clear there as to if iPhone 3G owners can buy a new iPhone 3G at the new-customer price after 90 days.

P.S. All-caps are not needed. Please don’t use them in the future.

I didnt know about that having to activate the old iPhone before July 11th bit. But yes I did everything on July 11th and it worked for me. I must have slipped through the cracks if it isnt working now.

This is a nice guide.. I wish I could’ve seen it sooner. Not sure why everyone is so up in arms about it. It absolutely would work if you had a 1st gen. iPhone pre-July 11. Why?

Owners of the 1st gen iPhone (pre-July 11) DO qualify for the $199/$299 upgrade prices regardless of time since last upgrade/remaining time on contract.

After 30 days you CAN cancel service, pay the early-term fee, AND keep the phone…..

It’s as simple as that..

I bought a 3G on Friday. I have all of the paperwork and contract terms. Clearly, within 30 days, return the phone. After that it’s the early termination fee, and see ya later.

@Michael

I got my Iphone 3G on the Saturday July 12th. Do I cancel on the 30th day from that or from when my account was established with the Tilt? Thanks.

this is a dumb plan for anyone:

u can buy the phone for 400 without a contract, so why pay 200 and then money for a plan for a month and then cancel on the 30th day and pay 170, that puts you over 400. are you stupid? ? ?

if you have a family plan with 3 or 5 lines, and you get 5 iphones for 200 each, then you can possibly sell the extra ones you dont really want and switch those lines to regular phones and make some money off the whole thing. and i guess you have to start a new 2 year contract.

you can also always claim that you have no signal anymore at home and then they will likely cancel your contract. if they dont call your state consumer protection dept and they will email att for you and get you cancelled. att has terrible signal quality in many many areas where people work and live .

you can also loose your phone or have it stolen (meaning sell it ) and you should be able to go to a apple store and buy another one and put it on your account. i mean what would they do now if you lost your phone? ? they would sell you another one rather than have you go to another company . they make 1200$$ a year off you so they dont want to loose you.

@john: Retail iphone with no contrac