The evil AT&T is at it again, this time with an even cheaper tactic to hose the average user. They have announced a contract-free iPhone 3G for a whopping $599/$699 (8GB/16GB) with a possible 32GB iPhone round the block(June ’09). Since they are still locking you with AT&T though without a contract, it is a lame idea by AT&T.

So how in the world are developers, tech-enthusiasts, T-Mobile lovers exposed to this amazing Apple’s offering? Well, Microsoft to the rescue and some crazy-ass tactics to hit AT&T hard, real hard

Lets look at it this way(Reference : 8GB iPhone 3G):

AT&T’s contract-free 8GB iPhone 3G : $599 + 7% tax = $640 without a contract!

AT&T’s Refurb coupled with MS’ Live cashback(35% at the moment) : $99 – $35 + $7 + $36 + $8 + $170 = $285 (approx.)

Breakdown Refurb price – Live.com cashback + Tax + Activation Fee + First month’s pro-rated bill + ETF)

You will be getting 2.30 baseband in either case, hence this deal appeals more to developers and potential will-use-iphone-as-ipod-touch users!

Step by step guide (Please follow in the exact order as described) :

1) Visit Microsoft’s Live.com

2) Search for the term ‘att’

3) Click on the ad shown on the top (make sure 25%~35% is displayed in the ad)

4) Click on Cell Phones & Devices on top-left corner and then look for Refurbished phones on the bottom right corner and search for iPhone!

5) Select a basic plan and nothing more since we are going to deactivate the line in a month or 3 days if you feel adventurous!

6) Call them and cancel during the first 3 days, you are obliged to return the device failing which you are charged ETF and a pro-rated service fee ($8) ! This way you can save an additional $60, sweet You have to provide reasons for cancellation though – like weak signal in your basement apartment or oops, I am looking for upgrade since I already have ATT plan!

7) If you missed out on the first 3 day cancellation trick, you have to pay first month’s bill and then call ATT to cancel after a month

Feel free to post your comments, it helps others jump in on the deal and save themselves from ATT’s evil plans as always!

p.s : It worked for me, proceed with caution and please ignore this post if you are not the one who can go for an occasional risk.