AT&T Mobility goes on defensive, to offer iPhone 3GS at $50

In a move to perhaps brace itself from the rumored impending availability of Apple Inc.’s (AAPL) iPhone at rival carriers, AT&T Mobility (T) said it would begin selling the previous generation iPhone 3GS model for $50 beginning Jan. 7. That price will be for the 8 GB model and require a two-year contract and accompanying data package and be available to both new and upgrade eligible customers.
The device originally retailed for $200 when launched in the summer of 2009, but has since been usurped in the Apple line up by the iPhone 4, which launched this past summer. The 3GS has been selling for $100 since the launch of the 4, though AT&T Mobility also offers a variety of refurbished models beginning as low as $20.
However they are acquired, all iPhones from AT&T Mobility require a fee as high as $325 for customers that cancel their contract before the term is up.
Rumors have been increasing that Apple is set to unveil the iPhone 4 at additional domestic carriers in the coming months with the most often cited being Verizon Wireless.