Rumor: AT&T mulling cheaper iPhone rate plans

If you've been sitting on the iPhone sidelines because the AT&T rate plans are too expensive, help may be on the way. A hot little rumor from BusinessWeek notes that AT&T may be dropping some prices on its iPhone data rate plans in an effort to get more people into the iPhone camp.

BW cites "people with knowledge of the company's thinking" as saying that one AT&T plan could be introduced as early as late May that would include limited data access for $20 per month. What limited means remains to be determined.

If the reduction pans out it would amount to a $10 reduction from the current $30 per month unlimited data plan which is mandatory for all iPhone subscribers. Current iPhone subscribers pay upwards of $75 per month after taxes and fees are added.

BW also notes that AT&Ts concession on rates may be an attempt to win an extension on its exclusive iPhone contract to carry the iPhone in the U.S. and that AT&T may have less bargaining power as Apple has been rumored to be considering a CDMA version of the iPhone which could be available on Verizon.

Tip: AppleInsider