AT&T Axes Prepaid iPhone 3G PlansAT&T Axes Prepaid iPhone 3G Plans

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Apple iPhone 3G S

When the iPhone 3.0 software gets pushed out Wednesday, users will gain multiple new features like cut and paste, but some will lose the ability to have prepaid service plans.

The second-largest U.S. carrier said iPhone 3G users won't be able to use its GoPhone rate plans because the original iPhone is the only device that was officially approved for AT&T's prepaid plans.

"[The] iPhone OS 3.0 software update available June 17 may impact the data service for certain GoPhone customers using either an original iPhone or iPhone 3G," AT&T said in a note to customers. "AT&T GoPhone rate plans will not be approved for use with iPhone 3G S when the new device becomes available on June 19."

Users with the original iPhone can still use the prepaid service providing they have an unlimited data plan, AT&T said. Customers with a "Pick Your Plan" or a "Pay As You Go" plan have to move to an approved rate with an unlimited data plan. The mobile operator did not say how many iPhone users are on the GoPhone plans.

The move likely will not affect a large chunk of iPhone users, as the platform became incredibly successful when the iPhone 3G hit the $199 price point last year. This entry-level price was possible because AT&T restructured its deal with Apple, and the carrier heavily subsidized the handset in order to get customers signed to long-term contracts with lucrative data plans.

These subsidies have cost AT&T a lot in the short term, as analysts estimate the carrier pays more than $400 per handset, but the iPhone is poaching customers away from rival networks. These subsidies are also the reason existing iPhone 3G customers have to pay more to upgrade to the iPhone 3G S.

A smartphone with a prepaid plan can be a low-cost and low-risk technology that can boost the productivity of a mobile workforce. information examined how enterprises can equip their road warriors without breaking the bank, and the report can be downloaded here (registration required).