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AT&T has confirmed a report that it will offer iPhones without a two-year contract starting next week.

The Associated Press quoted an AT&T representative Thursday confirming plans to sell no-contract iPhones for $599 or $699 starting next Thursday, as first reported Wednesday by the Boy Genius Report. There’s a catch, however; those phones will still be locked to AT&T’s network.

A regular AT&T iPhone account will be required to operate the phone, although theoretically you could activate the phone one day, cancel your account the next, and only be out activation fees and a month’s worth of service, rather than two years worth of service. But then you’d be reduced to using your expensive iPhone over just Wi-Fi networks unless you’re willing to unlock it for other networks.

An Apple representative did not immediately return a call seeking comment on whether a similar offer would be in place at Apple’s retail stores, which the AP was also unable to confirm.

In an effort to keep “bandwidth hogs” in check, AT&T is testing the idea of placing limits on how much Internet data its subscribers can transfer each month.

The test, which began being applied in the Reno, Nev., area on Saturday, limits customers of AT&T’s slowest DSL service to 20 GB of monthly data transfers, while users of the fastest service will be limited to 150 gigabytes. Customers will have access to an online tool to track their usage and will receive notification when they reach 80 percent. Those who exceed their limits will be charged $1 per gigabyte.

Existing subscribers will be assigned the 150GB limit regardless of their subscription level. The limits will apply only to new subscribers in the Reno area.

The caps are intended to discourage heavy users, such as virtual reality gamers and file swappers, from causing network congestion. AT&T estimates that just 5 percent of its subscribers use up to 50 percent of the network’s capacity.

Regular Web and e-mail use shouldn’t come anywhere close to the limits, but regular users of streaming services such has Netflix could test that limit. A standard length movie downloaded over the Internet requires about 2 gigabytes.

The test follows new plans introduced last month by Comcast, the nation’s second-largest Internet service provider, in which subscribers would get a 250 gigabyte limit. Users who exceed that limit would reportedly face fines or possible suspension of their account.

Time Warner Cable and FairPoint Communications are also reportedly exploring instituting traffic limits.

Source: cnet.com

AT&T stores today began selling the new BlackBerry Bold smart phone for $300, after a $100 mail-in rebate and a commitment to a two-year voice and data plan.

The phone operates exclusively in the U.S. on AT&T networks, including its 3G service over HSDPA, which is available in 320 cities, AT&T Inc. officials said in a statement. It also comes with GPS and Wi-Fi. The device is also available online from AT&T.

An AT&T spokesman said three hours after sales began on the East Coast that he had no reports of problems with set-up or network access. Lines to buy the device were not expected, analysts said, since the Bold is one of several new smart phones to hit the market in recent months.

While Apple stores saw long lines for the iPhone 3G when it arrived in stores in July, there were short lines at nearly all locations for the first day of sales of the T-Mobile G1, which runs on the Android operating system, when it went on sale last month.

Jeff Bradley, senior vice president for devices at AT&T Wireless, called the Bold the “best BlackBerry smart phone ever,” noting in a statement that it has a variety of pre-loaded applications such as AT&T Navigator, Yellowpages.com Mobile, and access to music and video clips. AT&T has described the device as a well-rounded handset for business and consumer users with access to e-mail, voice, Web browsing, and features such as music and video.

There are 18 applications focused on business users, who work in such areas as health care, financial services, field sales and service and CRM, AT&T said. Bold also works with the BlackBerry Enterprise Server, offering IT administration and security for Lotus Domino, Exchange and Novell GroupWise, as well as BlackBerry Professional, an application for smaller businesses. The Bold also supports the BlackBerry Internet Service, offering push-based e-mail for as many as 10 e-mail accounts.

The Bold is black with a chrome frame and a VGA display with a full QWERTY keyboard for fast typing. It comes with a 624-MHz processor, 1GB of internal storage and a 16GB expansion slot, and a 2-megapixel camera.

Customers who buy an unlimited data plan with the Bold (starting at $30 a month) can get free AT&T Wi-Fi service at 17,000 locations, including Starbucks outlets. Voice and data plans are required for two years with purchase of the phone, and voice plans start at $40 a month.

The Bold was previously known as the BlackBerry 9000.