Iphone not available to existing ATT users??

I moved from T Mobile ( I was a satisfied customer) to ATT in Jan 2008 (just because I wanted to buy an iPhone). Salesman at ATT store told me that new IMPROVED iPhone will come out later this year (he said in Jun 2008). Well new iPhone was launched but ATT is asking me $ 399 for new iPhone. In Jan 2008 I got a cheap Nokia phone ( thinking I will soon switch over to iPhone), what kinda arrangement is this ?? I think ATT and Apple don't care for customers already trapped in their network....

This is an issue to take up with AT&T, these forums are merely an Apple user discussion board for tips tricks and solutions with Apple products. Nobody here can fix the problem you are having, or is authorized to make a decision for or against you.
That said... it doesn't sound like your problem is because you came from T-Mobile. The problem is because you just bought a phone in January. That is, bought a phone that carries a 2-year contract. One that, if you actually read the fine print, says you agree to pay a hefty fee if you don't stick to. AT&T has been making exceptions to first gen iPhone users who have a year (or something coming close to that) of service, but they aren't letting recent buyers out of that agreement, and as your experience shows, they're charging a $200 premium for the phone.
My advice would be to call up AT&T support/service. Ask to speak to a manager. The policy is what it is, you signed (and agreed to it), there's no getting around that. But explain your case and be nice and ask if they can make an exception. If they can't, then ask them when you will be eligible to upgrade your phone without paying a penalty.
Good luck!
Trilo

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