ATT Tells Me that I have to Pay $150 Additional to use iPhone

Question

My Cingular contract is up at the end of next month, I originaly set it up with family plan and then with my company we get 3% off the montly bill a whole $1.80. I went to activate with the same cannot activate that everyone else is getting.
I get a hold of a ATT rep and the outcome is the only way I can activate the iPhone is to cancel my current contract, hence the $150 cancellation fee and sign up for a new family plan that only has 10 more minutes but cost $50 more a month.
I stood in line for 10 hours and payed $659 to be told I have to put down an additional $150 to use the **** thing or wait a month before I can use it.
Apple better get on ATT %#$ because this is the worst experience I have ever faced,.

Answer 1

What you are hearing is totally wrong, unless there is something you have not told us about your existing service. Is your current line a normal retail consumer line or is it through a business? My understanding is that business customers cannot add an iPhone to their accounts, because they get special pricing.
I was on a regional sales call with AT&T about the iPhone on Friday. They expressly said any consumer can upgrade to an iPhone even if they had just upgraded (and the salesman would be not back-charged on the previous commission). The customer just needed to agree to a new 2 year plan from that day forward (not 2 years on top of the expiration of your current contract). The link provided by Bonnie says the exact same thing:
Q. I just upgraded my phone recently. Are there any penalties or restrictions for upgrading to iPhone right away?
A. No. Everyone can upgrade to iPhone right away, you just need to add an iPhone Data Plan (this may replace your current data plan but your voice plan will stay the same) and sign a new 2-year service contract. Discount eligibility for other devices will continue from the time of your current contract.
I would print that puppy out (with the URL) and go to a different AT&T store. Another way around this is to buy the stinking phone and activate it online. The iTunes activation will walk you through it just like we said (assuming, again, you are a normal, retail consumer). Also, take that rep up on speaking with a manager and quote the FAQ Bonnie linked. You will get it done eventually. A lot of the employees are just misinformed.
Oh, and who you really ought to be mad at is Randall Stephenson (CEO of AT&T). But, again, your sales rep is 100% wrong. So, I would not be mad at either one. Just the rep.