Well now, there are a few net whispers running round the net waves that old AT&T are planning to scoop up any old Apple iPhone from subscribers that just happen to walk into one of their stores to upgrade to the brand spanking new shiny Apple iPhone 3G at the hugely subsidised price of $199.00 for 8GB and $299.00 for 16GB models.

These rumours do seem somewhat bogus to begin with if you consider that some will have got rid of their first generation iPhone in one way or another, sold them on or made them vanish without trace so you can’t hand them over to an AT&T assistant.

However, net whispers and rumours can be quashed because AT&T says they will not have gun toting iPhone handset guards waiting in every AT&T store ready to give you a full body search so they can confiscate your old iPhone.

Apparently AT&T says the only circumstance where someone would need to return their first generation Apple iPhone is if they are taking the advantage of their exchange deal for those customers who purchased the iPhone since May 27th.

Just so everything is perfectly clear on this matter, anyone wishing to take advantage of the $199.00 8GB or $299.00 16GB pricing will be required to enter into or extend their contract by 2 years. AT&T say there will also be a “non-qualified” upgrade price as well, although there has been no disclosure on the terms or said qualification or pricing.

Source — engadgetmobile