ATT here told me the iphone was 299 and the monthly plan was 30 more per month.
I picked up a Samsung eternity instead for 145 after rebate and 15 more per month for unlimited internet.
So far the eternity works great. iphone has a better web browser but not by much..also there is no wifi for eternity if that matters to you.(only needed if you are not in a supported area and need to piigyback someone else s internet.)