Apple debuts faster, cheaper iPhone.

Byline: Jill Aho The Register-Guard

The future of cellular technology hits stores in 22 countries today, as AT&T begins offering the new Apple iPhone 3G.

Priced lower than its predecessor, the new iPhone promises faster download speeds, with AT&T's 3G technology. IPhones start at $199 for the 8 gigabyte model, available in black only, and $299 for the 16 gigabyte model, available in black or white, with a new two-year contract from AT&T. The phones are available for purchase without contracts for $599 and $699 respectively.

"The basic improvement that everyone can understand is that the iPhone 3G has a faster connection to the Internet," said Tom Krazit, author of One More Thing, a technology blog devoted to Apple at Cnet News.com. "It's like putting a broadband connection into your house after years of dial-up; it's not that fast, exactly, but the difference is very noticeable."

Download speeds are dependent on the availability of 3G networks in a user's area. Apple says technology is available in 280 metropolitan areas, and that will be expanded to 350 by year's end. In Oregon, the technology is available in Eugene, Medford, certain areas along the coast, Portland and Salem.

Jon Biggins, area manager for AT&T stores located in Eugene, said the majority of the city is covered by the 3G network and by year's end it will be completely covered.

"The great thing about this area is it's seamless," Biggins said. When not in a 3G area, the iPhone automatically uses the EDGE network, which the original iPhones used. "If I do leave, it works virtually the same, just on a different speed network, but it'll still work great," he said.

Both Eugene stores will be opening at 8 a.m. today, and Biggins anticipates customers will be waiting.

"Our employees are excited to work tomorrow," he said. "I know a lot of people will be showing up early. Some stores have lines that have started already."

Last year, both AT&T locations in Eugene reported selling out of the original iPhone by 7 p.m. the day it was released. The original product retailed for $499 for a 4 gigabyte model and $599 for the 8 gigabyte version.

Some things will be different this year, Biggins said, because the phones will be activated before they leave stores. Last year some people bought iPhones on the launch date and then re-sold them for profits of hundreds of dollars on the Internet.

Biggins said one improvement is the new iPhones use real GPS, cell phone towers and wi-fi connections to provide the most accurate directions possible, all while still talking on the phone.

One criticism already is that the overall cost of the new iPhone actually will be higher than the original because monthly fees have gone up. The original base modelsold for $499. Add to that a $39 monthly calling plan, plus $20 data with 200 text messages included, and the total cost after two years was $1,915. The new 8 gigabyte model sells for $199, but add a $39 monthly calling plan, $30 for data and $5 for text messages, and the total is $1,975.

Biggins said the minimum monthly cost would be $69.99 per month for a calling package that includes 450 peak minutes plus unlimited Internet use, but no text messaging.

Krazit said the hype is far less this year than last year. He said that may be because the new iPhone is fairly similar to the original.

"The most interesting thing might be the addition of third-party applications to the device, so you can run games and other things on the iPhone, but people don't seem to get as excited about stuff like that," he said.

Biggins said users will be able to download these applications through the phone's Internet connection.

The New York Times, Wall Street Journal and USA Today all got advance devices to review. Reviewers said improvements in the new model include enhanced audio quality and gaming possibilities. Criticisms included a shorter battery life and incompatibility with older third-party accessories. The new iPhone does not address complaints that there is no video, the camera does not swivel to offer video chat, and there is no voice-dialing option.

"The lack of those features a disappoints some people because other phones at similar prices have those features, but I don't think it's that big a deal." Krazit said. "People are always going to have a wish list, and Apple (or any company) isn't always going to cross off everything on that list."

Where to buy:

AT&T Stores will open at 8 a.m. in Eugene at 1125B Valley River Drive and 4385 Commerce St.

Jon Biggins of AT&T recommends consumers download an "i-ready" checklist form from www.att.com before arriving to buy an iPhone 3G. But, he added, salespeople will be happy to go through the checklist with consumers.