AT&T Loophole Provides a Free Phone

Pay for your iPhone using a loophole when signing up for new service.

Usually when you buy a subsidized handset, there is a penalty when you upgrade early, but as the iPhone is not subsidized, adding one to an existing plan incurs no such fee.

To use an example from PhoneNews.com, if you buy a Nokia N75 from Amazon on a two year contract, it'll cost $20 (minus a $25 mail-in rebate). Go grab an iPhone, activate it and add it to the AT&T plan. That's it.

Link (via Wired Gadget Lab)