The new iPhone 3GS is enabled with a great number of features, with improved speed, more storage capacity, and better camera capable of even shooting a video. However, it is   provided on increased price of $399 instead of subsidized rates as occurred when iPhones were upgraded to 3G on subsidized rate of $199.

And reasons from AT&T increased rates seems like from the expiry of two year contract in between for 3G to upgraded to 3GS  and AT& T do not wish to pay for that cost, otherwise charging extra bugs for remaining year for the subscriber. But this move of AT&T may not work appropriately as many a number of people do not like its services and would go for better alternative, otherwise. And whatever the new feature AT&T provides it is because other provider also facilitating customers with them.

There also exist other possibilities of not subsiding price so that Apple may at any period of time be able to go beyond AT& T network post probably next year. Buying, iPhone 3GS now, will book you for full two years with AT&T and any change in between force you to pay heavy cancellation fee. At present AT&T is trying to convince Apple to extend its iPhone through 2011 that make sense of purchasing iPhone 3G S. So, it is advised to measure every point well before making a purchase of AT& T phone.