AT&T Slashes iPhone 3GS Price To $49

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The Verizon iPhone might be announced any day now. But, to keep customers with them and more importantly to attract some new ones, AT&T announced at CES that they are cutting the price of an iPhone 3GS to just $49 with a two-year contract and data plan, according to the Wall Street Journal. (If only the guy in the picture above knew how much cheaper it would be just a couple of years later.)

The 8G will remain at its usual $99 price until Friday, after which the price will be cut in half. The cell phone service company also announced they will be releasing 20 new smartphones in 2011. It’s a smart move for AT&T especially since they will lose exclusivity on the iPhone soon. However, since AT&T was ranked the worst cell phone service provider in 2010, one can only wonder if more customers will slow down internet connections and add to shoddy reception. The company says they are trying to make improvements by adding Wi-Fi public spots and are upgrading their connection in the upcoming year.

More on TIME.com:

AT&T Commercials From 1993 Eerily Comes True

AT&T Buys More Bandwidth, But It Won’t Help Current Congestion

Two Minute Video: Off We Go to the Consumer Electronics Show

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